Best Way To Learn Chart?
Q: Well Personally, I would NEVER, EVER buy or sell a stock without consulting it's chart. Since personally, I don't do day trading, I do use intraday charts to actually time my trade, either buy or sell. See charts can't tell you how good the company is. How they are going to make this much money. How it is a great this or that when it is not. In other words they don't know how to LIE to you. That is what makes them PERFECT tool, at least in my opinion...
A:
I agree 100%. As for how to learn to do this, it's a long process, and only
ONE of many things you'll need to learn to make money and keep it. This is
a hard business. 99% of what's written about technical analysis is garbage
btw! It's MUCH simpler than you think....
Oh yeah... I forgot to say a few words about learning. See, when I f
started looking at the charts, I was confused at what to look. Candlesticks,
Bars, Line... between so many different chart types, and being new to them it
was confusing as heck. Most of the technical analysis books or publications,
that I have come accross are plain JUNK. In other words they only teach you
the basics as to what each indicator represents, but will not teach how to
time or trade an equitiy (STOCK) based on the charts. Now how do you learn?
Actually as A Grimes points out it is MUCH simplier than you think. You just
need experience. We recommend to all of our website members that they start
paper trading for the first month. Then chose anywhere between 50 - 100
shares once they have "graduated" from paper trading. YES I DO realize that
it is quite hard to cover even the comission costs by trading only 100
shares, and the profits, when we have any, are not good. We recommend you do
this for the next 3 months or so. If you are wondering why, I think you are
approaching this whole thing the wrong way. Trading stocks is not supposed
to be a gimmick. It is a hard job. YOU should expect to lose money in the
begining when you start, as you are gaining experience. It is uncommon for
us not to be patient and jump in the trade, trying to make that extra buck.
In fact anyone who knows anything about business managment and starting a
business knows and should understand that you are NOT expected to make money
and BE PROFITABLE immediately. You are doing good if you start breaking
even.
One of our website members suggested to us one day to have a look at Toni
Turner's book "A Beginner's Guide to Short-Term Trading"
(http://www.toniturner.com/). I read the book and I liked it. So I also
recommend it to our members who are just starting out with technical
analysis. After that you may want to check "Master Swing Trader." Sorry I
forgot the author, but you can find it on Amazon I am pretty sure. I got
mine at Borders.
Oh yeah, one more thing. Once you start making money, make sure that you
have a stop in to protect your profits, otherwise YOU WILL SEE THEM GO DOWN
the drain again. I have seen my portfolion go down as much as 80% of one
week's profits in ONE DAY when I first started. Guess what, THAT NEVER
HAPPENS AGAIN! ;).