Be Your Own Stock AnalystBe your own stock analyst with the help of Candlestick charting techniques. Why not be your own stock analyst? A stock analyst is simply the person who does the homework needed to decide if a stock price will go up or down in the future. Using both fundamental and technical analysis a stock analyst looks at basic factors about the company in question and how the market reads those factors. Stock market analysis always falls into these two categories, fundamental analysis and technical analysis. Fundamental stock analysis looks for intrinsic stock value and a margin of safety in long term investing. Technical chart analysis of stocks with tools like Candlestick pattern formations looks current movement of stock prices and compares with historical data to make accurate predictions as to future market trends and market reversal. There is always a risk in following someone else’s advice. Learn Candlestick analysis and be your own stock analyst. You will know more about how the market works and will be able to see the information that stock analysts see first hand. Then you will be trading stocks with your own information and not based on someone else’s stock market tips.
To be your own stock market analyst takes a bit more time than just reading someone else’s reports. However, if traders are doing their jobs right they are fact checking what they read anyway so the amounts of time traders spend getting the fundamentals on a stock will be about the same. When looking technical analysis the issue is not so much a matter of time as of timeliness. Technical analysis of stocks is in here and now. The stock market is a very fluid thing and when economic conditions change so do prices. Then the market reacts to its own reaction. It can seem, at times, like a house of mirrors with prices reflecting prices reflecting prices. That is why using time honored tools, like Candlestick patterns, helps the trader. Using these easy to read signals a trader can accurately and profitably anticipate stock price movement. Combining Candlestick basics with Candlestick trading tactics has made traders rich and it can help you too in making profits in stock trading. Be your own stock analyst with Candlestick signals and you too can profit by seeing future of the stock market a just the same time as the professional stock analyst. Then, when the analyst is publishing his or her results you will already be trading stock for a profit.
To be your own stock analyst means that you will have technical analysis results at exactly the right time and not after the fact. There are times when minutes and even seconds matter in trading stocks. Being your own stock analysts lets you react to a market change when everyone else is waiting for the “experts” to tell them what they should do. By the time word from experts comes down from the mountain to the rest of us it is useful only in telling what we should have done. In taking online training webinars in stock trading a student will learn from such expert opinion. However, an additional choice might be to hire the same online teacher as a coach for the duration of a couple of trading sessions in order to see the opportunity for trades as they evolve using Candlestick stock charts.
Market Direction: Successful option trading does not include buying calls when prices are expected to go up or buying puts when prices are expected to go down. There are many ramifications for buying an option. Most investors do not take into consideration the bid/ask spread or the magnitude in which a stock has to move to breakeven, moving the ask price to the bid price. Successful option trading is applying the correct option strategy with the correct be evaluated price move. There will be times when it is appropriate to merely buy a bullish call. However, more than likely, the appropriate evaluation of a price move will involve buying a bullish call spread or selling a put spread. Even these strategies involve different time frames.
The most effective option trades occur at market reversals. There is an advantage to be gained by a depressed option price after a long down move.not only is the price lower, but the premium diminishes due to the lack of bullish enthusiasm. Having the ability to recognize when a reversal has occurred very early allows option traders to take advantage of the information in candlestick signals. They can be buying option positions before the premium begins to expand again.
As the markets continue their steady uptrend, the candlestick investor can take advantage of price pattern breakouts. Whether buying the stock or buying the option, the breakout can be very well-timed due to the visual set up of each pattern. Additionally, the correct option trade can be established using some of the price-move measuring techniques that are Incorporated into candlestick analysis. A price-move that has a measured potential will be much more effectively exploited using specific spread trades. This allows for less money to be exposed to the trade and a much higher percentage return.
In a nutshell, candlestick analysis helps investors identify the price direction with a fairly high degree of accuracy plus it also allows for the projection of where a stock price can move to. These two pieces of information dramatically improve placing the correct options strategy with exact timing. Many option trades are placed on stock positions on the basis that the anticipated price will be at a specific level two or three months into the future. There are many things that can occur in the markets or a specific stock price between now and two or three months down the road. Candlestick analysis is an extremely valuable tool for identifying what price movements are occurring right now.
Chat session tonight at 8 PM ET .Option strategies will be discussed.
Fall 2010 E-Learning Online Training Schedule