Proverb: Keep your friends
close, and your enemies closer!
If you want to see a few examples
of what can be found by reading charts, please click
on the blue links above which detail how you could have
saved a lot of money, and even made money had you known
how to read charts during the infamous Enron Meltdown
into bankruptcy in 2001 and the 2007 Mortgage Market
Meltdown.
The Programmers are Coming!
The Programmers are Coming!
For years the Investment Banks
and Hedge Funds have been hiring top computer programmers,
mathematicians and physicists to write programs that
trade the Market. One quote I have heard was that almost
half of the stock traded everyday is a computer driven
order. These computers trade off of mathematical algorithms
and, yes, they trade Stock Charts!
Why trade against a computer
when you can TRADE WITH THEM! This massive increase
in computer program trading in the past decade has actually
INCREASED the reliability of Technical Analysis. Computers
do not read the morning paper or interview a CFO, computers
read stock charts as stock charts are in numbers which
is what computers understand.
A lot of these computers have
very similar programs, and when a defined Support or
Resistance level is traded into, the orders for action
by the programs at that price point are put out right
on top of each other by multiple players. This large
grouping of orders can stop the movement of that stock,
possibly reverse the stock or propel it into a breakout
or breakdown.
If you can read the Chart - your
order can be there as well and then you will be USING
the computers the rest of the world has programmed for
your benefit!
FORE!
When you go golfing, do you use
your driver on every stroke? You tee off with a driver,
next come the long irons, then the short irons and finally
the putter.
Technical Analysis, or Stock
Chart reading is another club in your bag, another tool
to use to make money in the Market.
Fundamental Analysis and picking
good stocks to be involved with, can be the proverbial
'Driver' for an investor. If you fine tune your game
by learning to read stock charts you will have a better
idea where a good entry point for a stock is, when a
stock may be over-valued and should be sold, and even
more importantly - when a stock is acting weak and should
be sold immediately!
I am not that good a golfer but
I do know I take a lot more strokes with my Putter than
I do with my Driver. I also know that my game would
be even worse (yeah, its possible) if I only had one
club in my bag!
Trading is War
The Market has been referred
to as 'The Great Game', but this is NOT a game. Trading
and investing involve your very real dollars, retirement
accounts and financial health.
You need to arm yourself with
as many weapons that you can in this War.
Reading Stock Charts is another
skill that can help you pick good stocks to buy and
avoid the ones that may continue to drop.
One of the most important uses
of Technical Analysis is to warn you when a stock is
acting weak.
Protecting the money you have
right now is of paramount importance, and this Program
will teach you how to identify stocks that are breaking
down through support or breaking their previous trend.
These concepts are very important
when trying to protect the money you worked so hard
for.
