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Technical Analysis, do you still believe it?


Lots of analysts from trading portals claim to help you make money and they talk in alien language which makes people to hurry putting their money in stocks. This is a very bad decision to make and people should avoid doing it. Speculation is a tough business and there are no rules for it because no one knows and the decision to buy or sell depends on the news. You can be an expert in a few weeks from just knowing the basics and it’s not rocket science. Lot of people got no clue on where to start to analyze stock charts and instead waste time to collect more data which doesn’t work well.



If you want to double your money then you can fail within few months because there is no quick rich scheme. But if you want to make money over years slowly then there is something for you. Earnings from stock market have to be your second income and not primary one because you don’t want to risk more. There are lot of hours to be invested in learning and understanding the behavior of stock prices. It takes around 10000 hours of practice to master a subject and there is no overnight success. If you are looking for a buy signal or sell signal in the charts, just stop looking it again. You are probably doing it in the wrong way, how does your stock charts signal decide the entire buying or selling of the entire traders/investors in the country. Have you asked that question to yourself?

Stock market is gamble if you keep throwing your money. There are no Holy Grail systems out there and many are selling fake system which can’t generate money. Traders and investors are two people who play the market while one focuses on the short term and another guy considers to hold the stock for long term. The emotions of the traders and investors decide the market trend. However when the investor becomes the last bear, then the market moves in to the bearish zones which would take months to recover.

Eight to ten years is a good time period to hold your stocks and move to research more, because the opportunities are created in every bullish cycle or bearish cycle. If you observe it well, you can make more money quickly. Investing is the safest bet to make money and the risk is less if you know how to manage your funds effectively. Start reading the VIX index when it’s higher then you should be cautious about the drop in the prices.

As time progresses and due to technology boom, the old technical analysis methods don’t work anymore. If you are learning about reading charts, this can be your first step to success and it’s about knowing the resistance and support. How will you draw a simple resistance and support line?  The easiest way is plotting your 5 day high and 5 day low price.  Knowing how to draw resistance and support lines is what you need to know in technical analysis. It does work and you can believe it for sure.

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