How to Read Stocks: A Beginner’s Guide

Understanding the Basics: What Does 'How to Read Stocks' Mean?

How to read stocks is a fundamental skill for anyone interested in financial markets, whether you’re trading traditional equities or exploring the new world of tokenized assets on blockchain platforms. At its core, reading stocks means interpreting price charts, understanding market data, and recognizing the factors that influence stock movements. As of October 29, 2025, the rise of tokenized stocks—such as those offered by Ondo Global Markets on BNB Chain—has made stock reading skills even more relevant for crypto and DeFi users worldwide (Source: Coincu, CoinMarketCap).

Key Elements of Stock Reading: Charts, Indicators, and Volume

To master how to read stocks, start with the basics:

• Price Charts: The most common way to visualize stock performance. Line charts show closing prices over time, while candlestick charts reveal open, high, low, and close prices for each period. Candlesticks help identify trends and potential reversals.
• Volume: This shows how many shares or tokens are traded in a given period. High volume often signals strong interest or major news, while low volume may indicate uncertainty.
• Indicators: Tools like moving averages (MA), relative strength index (RSI), and MACD help traders spot momentum, overbought/oversold conditions, and trend changes. For example, a rising MA suggests upward momentum, while an RSI above 70 may indicate a stock is overbought.

With the emergence of tokenized stocks, these principles apply both to traditional equities and blockchain-based assets. Platforms like Bitget now offer access to tokenized U.S. stocks, making it essential to understand these indicators in both environments.

Industry Trends: Tokenized Stocks and Blockchain Integration

Recent developments highlight the growing connection between traditional finance and blockchain. As reported on October 29, 2025, Ondo Global Markets expanded to BNB Chain, bringing over 100 tokenized U.S. stocks and ETFs to more than 3.4 million daily users. This move enables real-time, 24/7 trading of equities on decentralized exchanges like PancakeSwap, bypassing regional restrictions and intermediaries (Source: Coincu).

Tokenized stocks are fully backed by underlying securities and stored with regulated custodians. This ensures transparency and compliance, while allowing users to trade, stake, or use stocks as collateral in DeFi protocols. The total value locked (TVL) in tokenized securities platforms has surpassed $350 million, with on-chain trading volume exceeding $669 million since September 2025.

Understanding how to read stocks is now crucial for navigating both traditional and blockchain-based markets. As tokenization accelerates, more investors are gaining access to U.S. equities, regardless of their location.

Common Mistakes and Practical Tips for Reading Stocks

Many beginners struggle with how to read stocks due to common pitfalls:

• Ignoring Volume: Focusing only on price without considering volume can lead to misinterpreting market strength.
• Overcomplicating Analysis: Using too many indicators at once can create confusion. Stick to a few key metrics that match your strategy.
• Chasing Hype: Reacting to rumors or unverified news—such as recent Federal Reserve rate cut speculation—can result in poor decisions. Always verify news from official sources before acting (Source: Coincu, October 29, 2025).

For those trading tokenized stocks, it’s important to understand the unique risks and benefits of on-chain assets. Ensure you use secure wallets—Bitget Wallet is recommended for managing digital assets—and stay informed about platform updates and regulatory changes.

Market Data and Real-World Examples

Let’s look at recent data to illustrate how to read stocks in practice:

• Bitcoin (BTC): As of October 29, 2025, BTC traded at $111,760.69 with a market cap of $2.23 trillion and a 24-hour volume of $63.01 billion. These figures highlight the importance of monitoring both price and volume for market sentiment.
• Tokenized Stock Market: The value of tokenized stocks has nearly doubled since August 2025, approaching $700 million. Ondo Global Markets alone accounts for $320 million in TVL, reflecting rapid adoption and investor confidence.

By regularly checking these metrics, you can better understand market trends and make informed decisions when trading stocks—whether traditional or tokenized.

Further Exploration: Stay Ahead with Bitget

Learning how to read stocks is an ongoing journey, especially as financial markets evolve with blockchain technology. Bitget provides a secure, user-friendly platform for trading both traditional and tokenized assets. Explore Bitget’s advanced charting tools, educational resources, and Bitget Wallet for seamless asset management.

Ready to deepen your understanding? Start practicing your stock reading skills on Bitget today and stay updated with the latest market trends and innovations in tokenized finance.