These days there are many
indicators in stock market and not all of them works. If you ask me, the
indicators fail most of the time. This is because most the indicators are made
with price, volume and time. These are mechanical factors and can’t be accurate
every time. Predictions using these alone may fail most times. With MACD, RSI
and stochastics, many investors find the future prices of the stock or index
but fail to be more practical. If you are procrastinating or failing badly, I suggest
you to get my e-book recently published on amazon. Why do we fail?? http://www.amazon.com/gp/product/B0159TIJKY
But technical analysis should be
used as an additional indicator and not as a sole indicator. People real buying
and selling acts as the true indicator, which may not be possible to chart as
an indicator. It is good to stick with the basics because it always works. Many
people become over smart with the markets and lose their money. Be more
practical and think about it, somewhere in the apartments you are having a
laptop and you predict the entire markets??? How false is that?? How fake is that?? And you tell the other
stock traders and advise them?? Make your own path, it is good to take
inspiration but be unique and be confident of your style.
All the theories work to some
extend but it’s not always right. Individual buying of stocks and selling of
stocks gives us a trend but it may or may not be right all the time. Someone advertises
in the newspaper or YouTube ads or through Sms that he can bring more money to
you. If he or she can bring more money to you, why not they can earn
themselves. Because no one has made only profits in the stock market, and it
requires more buying power.
So, what is the point of this
article??
Don’t trust someone that he or
she can make money for you. Don’t trust any indicator software, if you get a
buy signal you are not always right. Learn à
Analyze àrepeat,
you will get an idea on stock markets. Don’t complicate things, because it is
already simple things that work faster and quicker, deliver your results. In
technical analysis, you must know what trending pattern is, what bearish
pattern is.
Of all the methods in technical
analysis, some of them which found to be working are
1. Open
range break-out technique (Toby Crabel)
2. Gann
square of nine
3. Turtle
trading using 5 days instead of 20 days
4. Sticky
charts ( search this book on amazon)
The ratio of
success is above 50% and it depends on the market conditions, person’s
individual luck also plays its role here.
When it comes to fundamental
analysis, we look at the P/E ratio and we look at the quarter results. Is the
company having more debts?? If it is a
fundamentally failing stock but it is in the hands of an institutional
investor, it is going to be at high price soon or later. So, when you look for
fundamentally strong stocks. It is advisable to look at the entire market
scenario and the individual technical analysis of the stock. One way to earn
easy money from stock market is to write a book on “How to trade on stock
market?” or sell it on click bank. Understand that stock market is not for
everyone, it is not profitable always. One in every ten people, has made huge
losses in stock market. Even the cleverest person at stock market gambles with
one trade making losses. It is not always losses, but the overall gain is what
many want!
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