Getting Started at Stock-Picking, Part 2

Charts show you the price movement of a stock. Using a chart is like taking a small plane up for an aerial view of the terrain. Not only can you get a picture of price movements over time, you can see how consistent they've been and in what direction they're moving. Charts are the bread and butter of what's called technical analsyis. The whole idea is that the chart reflects you the psychology of the buyers and sellers, and it can show patterns that predict future moves. Indeed, technicians like TSC's Gary B. Smith often don't even know the name of a stock or what a company does. They just track its price movement and the volume of trading activity.

When you're getting started, you shouldn't go that far. But you should look at a stock's chart before plunging. If your library board hasn't squandered all its money paying ghost employees, you might be lucky enough to find some up-to-date chart books back at the investing section. (You'll want more detail than Value Line offers on this front.)

If you're ready to get out of the library already, you'll find what you need chart-wise right here at TheStreet.com. TSC offers charts of all iterations through BigCharts. ...