Thanks for your kind comments. I am glad you foun...

2007-11-16T02:37:17.194-05:00

Thanks for your kind comments. I am glad you found the chart info useful. I attempted to provide a starting point. The market is not easy to master. Some think they can read a book on charts in one afternoon and then get rich by using what they just read. They make a bad trade and then are convinced Charts do not work. That is like going to a surgeon who read the book on how to perform a procedure, but does not have any actual experience. I know I would not want to be that book-smart surgeon’s first patient. You need to obtain experience reviewing charts. There is a difference between STATIC CHARTS and DYNAMIC CHARTS. The market is DYNAMIC and therefore you have to determine how your stock behaves with respect to the market action and to the action of other stocks in the same industry. When I enter a position I usually watch 5 other stocks in the same industry with good fundamentals. I watch the charts and the percentage gains and losses per day. If all of the stocks in the sector take a similar hit on a down day – then they just went down with the tide. But if the stock you are in goes down 3% while the rest of the sector goes down 1% review the charts and see if you can find any clues. Did the volume change? On the following day do the other stocks fall 2% while your stock remains steady? Is your stock lagging behind the others in the sector? If you watch your stocks chart action on a daily basis you will be able to detect mood changes. Remember to review the intraday charts. For example – today THU NOV 15, the market tanked the last hour of the day. Pull up an intraday (5 min or what ever you like) chart of your stock and a chart of the market. Do they fall at the same time? Was there huge volume on the decline (panic selling)? Was it steady volume? Were shorts covering the last 3 minutes? You should be able to see this information. The market is not easy, the harder you work at it, the “luckier” you will get!! Buy stocks with good earnings in strong sectors. You do not have to pick the exact top or bottom. Just make a profit!!!! Good Luck!!!!

Thank you Jethro for sharing these chart basics.Re...

2007-11-15T04:07:41.737-05:00

Thank you Jethro for sharing these chart basics.
Regards,
Shyam

Thanks for the lesson. Bookmarked.

2007-11-14T15:18:46.893-05:00

Thanks for the lesson. Bookmarked.

Comments on Trading Goddess: Chart Basics 3 - Trends, Entries, Exits

Thanks for your kind comments. I am glad you foun...

Thank you Jethro for sharing these chart basics.Re...

Thanks for the lesson. Bookmarked.