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Making Money with Technical Analysis of Stocks
Tuesday, 18 August 2009
Technical Analysis of Paralysis of Stocks
Technical research of stocks is an imprecise idea to most who have no idea about charts and technical indicators. The general public spend a lot of time studying indicators for notions of what price will do. They spent lots of time on these technical indicators for their technical research and then they don't even follow them.

Sounds brilliant, huh. I just wished to tell you what happens to most particularly those who get too involved with technical indicators. And don't even get me started on the'intuitive crowd' that trades by the seat of their pants thinking that they have special access to their gut feeling when the majority of the time they're overpowered by their own feelings.

Usually many traders to become involved with technical analysis are traders who are emotionally frightened of the markets and making an attempt to look busy studying technical analysis. Real, moneymaking traders who essentially wish to get into the business of earning customarily do not get too involved with technical indicators. Some use and to a limited extent. real traders who are aggressively pursuing trading is the business must use chart analysis and chart patterns for his act entry and exit points for their trades.

it is important to differentiate between technical research indicators and technical analysis with chart pattern studies. I have seen more people confuse themselves with technical indicators like oscillators, moving averages, bands and channels... Not that those are bad but traders have a tough time generally trusting those indicators. And lack of trust in your trading methodology will cause trouble and will significantly delay your success.

So let's get to a point here. In technical analysis of Stock your going to want to figure out the direction of the trend on the swing, the midterm trend in the long run trend. Once you reach trend and you can determine whether the stock is in a trend or not or is in a sideways channel or a consolidating chart pattern like a triangle consolidation.

For me, I have learned that you need to discover a method of entry and exit that is intensely clear so you will act once the feelings are running high in you I in the right way. Also it's important that your stop loss is really clear so you can't create excuses later for changing your stoploss. On top of that your technical research wishes to help find high probability events for good price movement in your favor. More on that later...

Posted by benitodean1538 at 7:30 PM EDT
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