Gain Stock Investment PerspectiveThere are a number of usually successful ways to gain stock investment perspective. Unfortunately, some of them involve losing all of your money in bad stock investing. While experience is the great teacher it is preferable to gain stock investment perspective from traders and investors with years of experience through online training webinars such as the Candlestick Forum Boot Camp. The necessary experience for someone beginning investing in the stock market is to learn from the experience of others in order to shape a successful investment strategy. There are always profitable trades to be made and with a little homework one can always find a stock with a low price to earnings ratio and a substantial margin of safety. Learning how to find intrinsic stock value takes a little time and experience. Learning how to plan a strategy and use historically successful technical analysis tools such as Candlestick charting techniques is an excellent and profitable way to gain stock investment perspective.
Successful stock investing requires that the individual be able to carry out fundamental analysis of stocks in order to be picking stocks with either the prospect of long term growth or the likelihood of a rapid change in stock price, either up or down. Those who gain stock investment perspective over time come to realize that, although knowing the fundamentals is necessary, everyone knows or has access to the same information. However, not everyone interprets the information in the same way. Thus stock prices move up and down as investors and traders buy stock, sell stock, purchase options on stocks, and practice hedging with complicated trading strategies. In all of this buying, selling, and hedging of stocks a stock price moves up and down in patterns. It is the patterns that are the key to how Candlestick analysis works. Although, in theory, a person could gain stock investment perspective comparable to that contained in the Candlestick signals it would probably take a lifetime of trading in the stock market. That is not necessary because an easily understood system made for anticipating stock price movement is already in place in Candlestick patterns.Another useful type of perspective that a trader can gain in an interactive online trading course is that you donít have to trade unless you are ready. Sometimes the market is not showing you a clear Candlestick pattern. An experienced trader will be able to recall instances of when just waiting a day or even a few minutes made market direction, as read through Candlestick charting, crystal clear and eminently profitable. By listening to experienced traders and asking questions it is possible to gain stock investment perspective just as through the beginning trader had lived and traded through the same situations. Stock trading can be a very profitable lifetime occupation. It takes time, dedication, and discipline in executing trades as part of a well devised trading strategy. Learning Candlestick basics is an excellent way to start on the way and gain stock investment experience through profitable stock trades.
Market Direction: Candlestick signals are just as important for identifying reversals in trends as they are for identifying the continuation of an existing trend. Evaluating the existence of a current trend might not appear to be very important. However, this knowledge provides extremely profitable ramifications. Candlestick chart patterns perform successfully when there is not a severe alteration of a current trend. Obviously, bullish results are more apt to occur in a bullish trend. Fortunately, this is not always the case. An identifiable sideways moving market will also permit a candlestick pattern to perform properly.
Price movements occur based upon investor sentiment. Price trends are a function of consistent investor sentiment. Price patterns are developed because of specific set of circumstances that creates a recognizable reoccurring pattern. It is when market trends and price patterns work in a consistent atmosphere that big profits can be extracted from a pattern breakout. There are no secret formulas in candlestick analysis. It is merely the visual identification of price movements that have worked multitude of times in the past.
As we have illustrated in the BAS chart in recent newsletters, the expected results occurred after identifying the frypan bottom formation. Remaining consistently profitable with candlestick analysis simply requires identifying any dramatic changes, or the lack thereof, in the market trends. Why is candlestick analysis so simple to use? Because if a pattern can be identified, knowing that it will produce high profits, as seen in the BAS chart, then it becomes a very simple matter of finding the same chart pattern just starting under the same conditions. The breakout from the Fry Pan Bottom pattern is expected to produce big profits.
If that is the case, then it is prudent to scan for the next Fry Pan Bottom pattern that is just breaking out. The NSU chart reveals a frypan bottom with the exuberance just starting to show itself. This becomes a logical place to invest funds. Because patterns produce expected results at particular points of a pattern, not only does this become highly profitable stock trades, but it produces all the elements of big profits for option trades. The timing and the magnitude make a simple call option strategy the best for exploiting explosive moves.
For those of you that have not participated in the Candlestick Forum Option Training Program, October 16 and 17th, please take the time to investigate the trading strategies involved with candlestick analysis. You will gain a completely different perspective on which options strategies should be placed at appropriate times. You will gain a lot of information about how the option market works and which trades are most appropriate for specific candlestick signals and pattern movements. Do not miss this opportunity to learn an investment perspective that will dramatically improve your option trading capabilities.
Chat session tonight at 8 PM ETGood Investing,
Fall 2010 E-Learning Online Training Schedule