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Trading Charts and Profit.


Few weeks back , a friend curiously asked me about the strategy for successful Day trading. i told him to read article : Day trading-Hidden Rules.After reading it, he argued that day trading is gambling. I smiled to him and asked,why? 
 'people lose money,isnt it?'
 ' yes..'.i replied:'Have you analysed why people lose?'
 No.
'Do you ever find trading charts with these losers?'
 Never.
'That is the reason of their loss.'
 Ok.Can u explain it? He asked.
 'sure.Trading without charts is like driving a car without steering . Making profit is not an easy job.You need good understanding about charts,especially candlesticks. You should study about moving averages,MACD,Stochastics,RSI etc. Otherwise,you cannot identify the market trend.'
'Is these things are tough to learn?'He asked.
 'If you have interest and passion,it is easy'
 'Tell me,How can i practice it?'
 'Buy any professional chart and observe it continuously for at least one month.now,automated signals are also available. This will provide clear picture.'
 He accepted it and bought a professional chart.
Last day , i enquired: Is it gambling?
 He Laughed:'i dont know,but i like it so much now a days.beacuse,i have learned the art of making decent profits'
All the best friend.Nothing is tough.Nothing is easy.

Comments

  1. talk us about trading through such small small stories and experiences..good one

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  2. Subhash chandranMarch 27, 2012 9:22 am

    First and foremost, congratulations on this proactive initiative, it is really good and separates you from the usual and creates a niche for you. I like the way you have written the stuff. I trade on the market, but not a day trader and I find your comments, quite useful.
    Keep writing. All the best.

    Regards, Subhash Chandran

    ReplyDelete
  3. Good efforts to explain the common mistakes of beginners & small investors who wants to earn big money in short term.

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  4. sir,pls tell me how much reversalis related too ftse and dowjohn

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    Replies
    1. Dear vikas,all markets are inter related now.There are a lot of theoretical explanations about market behaviour.but,world market is often looking into dow jones.because,it is the most important index.FTSE is often measured with other european indices such as DAX,CAC40 etc.

      Delete
  5. This is a site to view volume and trading charts chart analysis. This site provides leading technical indicator analysis and provides a great stock screener.

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