A Contrarian's Standpoint Of Technical Analysis Today
There's an appreciable number of risk active in the share market. This may hold you informed towards varying trends within the share market and better your ability. Grab yourself a notebook to help you document your trading journey.
What causes the price of a stock to go up, down, or sideways? Much of what happens in the market is psychological. The price of a stock is determined by the enthusiasm or conviction of all potential buyers and sellers. There must be a buyer for every seller and a seller for every buyer. It must balance out.
So what exactly is stock technical analysis training and how can it help you with investing? In a nutshell, it is a method of forecasting the future movement or direction of a stock's price. This is done by studying important market data such as the price and volume of certain stocks. The reasonable price and volume are studied is because they are the two main factors that determine future trends. The price of security is said to tell the whole story when it comes to making investment decisions.
I didn't average 300% per year gain on my trading positions by being slow to learn. If I was wrong, the market kicked my ass hard. So you learn fast to develop the right reflexes.
If you were in the retail sales business then you would have to spend money buying your stock from the wholesaler in order to have the stock to sell at a retail profit. That is the nature of retailing. I see the inevitable losses in share market courses as being equivalent to those wholesale purchases and profitable trades as equivalent to the retail sales revenue. As long as the profits outweigh the losses then you have a sound business.
95% of FX traders lost 30 years ago and the same ratio losses today; this might strike you as odd due to the number of advances we have seen in the period, better news, faster news, instant price delivery, and more complex software and faster computers - none have helped to increase the number of traders who win. The reason the ratio of losers has remained so high is that human nature remains the same.
In my time mentoring and coaching people in the share market courses I have met many of sad stories about how their trusted broker or financial advisor took their money and lost lots of it. Well, in reality what happens is that people hand their money to the broker or advisor or fund manager quite willingly. Most inexperienced investors lose money in the share market courses. This includes brokers, financial advisors and fund managers.
Soooo You buy SDS. As the market retreats, your SDS's worth goes up. It is an inverse-ETF. You have been notified that you should sell your holdings during times of declining markets. In fact, many years ago, I subscribed to a financial newspaper, with the initials IBD, that uncovered stocks that were showing a "cup with handle" formation. It worked! The trouble was that IBD continued to point out "cup with handle" formations throughout the market crash of 2003. They never indicated that you should get out of the market or heaven forbid, go short the market. Now you have a resolution to that problem. Simply buy SDS and gain as your friends are moaning about a poor stock market.
There is an overall trend in a hedge fund and portfolio managers to trade the last three months of the market. If the market has been up, they want to buy it. If the market has been down, they want to sell and go short. This is the way to go broke.
Therefore, you're nearly fully guaranteed in order to make money. You will need to work hard to master how exactly to handle your emotions. This is another mark of good trading system.
