Welcome to Pharmboy’s new section! Here’s the first chapter of Pharmboy’s eBook on Trading Stocks, updated to reflect current market conditions. – Ilene
Understanding Market Cycles: The Art of Market Timing
Courtesy of Pharmboy
Study as if you were going to live forever; live as if you were going to die tomorrow. ~ Maria Mitchell
Get over the idea that only children should spend their time in study. Be a student so long as you still have something to learn, and this will mean all your life. ~ Henry L. Doherty
Welcome to Phil’s Stock World “Technical Trading 101” Handbook version 2.0! I think it’s a good time to update the handbook with newer charts and graphs, and give it more of a Biotech/Pharma fling. I also thought that ‘live’ charts could be used to place virtual trades. This would allow all to have a visual of trading patterns, as well as see how the charts are set up. This handbook is comprised of some simple methodologies in the art of Technical Analysis (henceforth referred to as TA). This handbook is not intended for novice traders, but it is my hope that by using examples that are ongoing in the market, all can become better traders AND investors.
TA is the art of reading charts and deriving a decision to buy or sell solely on the chart (something that Optrader does on his tab). Financial statements do not need to be read, as the chart speaks for itself. Technicians believe that past price patterns, trading actions, and price-volume relationships, among other indicators, form an accurate basis of where the stock is likely to move to in the near-term. Since price patterns on a chart are formed by investors & traders past emotional responses to price movements, the patterns can be exploited for use in the future.
TA is not a crystal ball! Patterns can, and will fail, and will result in losses. However, if the trader focuses on highly reliable patterns (e.g., shooting star), combine several indicators (e.g., MACD), and works on entry and exit points, a technician will be way ahead of…
