Identify Stock Buying OpportunitiesA profitable way to trade stocks is to learn to identify stock buying opportunities using Candlestick patterns. For example, in trading stocks caught in downward market trends, selling short is profitable, so long as there is no market reversal. Using Candlestick analysis traders can anticipate when to exit a short position on a stock. Using Candlestick pattern formations those engaged in short term trading as well as those interested in long term investing can indentify stock buying opportunities. In the downward trending market example above, the trader will look for a sign of market indecision as a prelude to a price turnaround. A Doji Candlestick signal will alert the trader and investor to the fact that sellers are starting to rethink their positions. In these sorts of situations the trader may choose to exit part of his short selling position and the long term investor may choose to start buying stock in small increments as they each identify stock buying opportunities.
Stock investing over the long term relies heavily on fundamental analysis of stocks. Price to earnings ratio, hard assets that provide a stockfs margin of safety, and the forward looking earnings that comprise intrinsic stock value all have their place in picking stocks for the long term. The PE ratio is useful in the short term as a tool to identify stock buying opportunities as a PE ratio can tells us if a stock may be over or under bought. The more effective way, however, to identify stock buying opportunities for the short or long term is to use Candlestick stock charts to read and anticipate the next step in investor sentiment. Although the short term trader will live and succeed by technical stock trading the long term investor will profit as well. Although an investor may wish to hold a strong stock for years or even decades his profits will be proportionally higher to the degree that he buys stocks at lower stock prices.
To successfully identify stock buying opportunities takes time. The trader needs to seek out promising stocks and then he needs to carry out Candlestick chart analysis for each promising stock on at least a daily basis. A useful way to streamline this process is to follow the picks and daily trading advice of an expert in Candlestick trading tactics. A profitable means of getting daily advice is to sign up as a member of the Candlestick Forum. The member can get daily stock picks of active stocks, listen to trading advice from Stephen W. Bigelow himself, and read the a printed copy of the daily picks as well in order to study how picks are made and trades profitably executed. In addition the Candlestick Forum chat room provides daily insights and the opportunity to ask questions. Periodic webinars give the new trader the chance to hone his skills at all levels of trading. In order to execute successful stock trades the trader needs the appropriate skill set for using Candlestick analysis. He needs be there at the right time to make the trade. Most importantly he needs to be in the right stock with the right skills at the right time. Here is where using the Candlestick Forum to help identify stock buying opportunities may be the most useful in obtaining trading profits. Check out membership in the Candlestick Forum today.
Market Direction: Many investors overlook one of the strongest aspects of candlestick analysis. Probabilities! Each signal and each pattern have been analyzed, through the centuries, creating a high probability trade situation. Although the term probability implies it is not 100% guaranteed, the probabilities are still greatly in favor of the candlestick investor. For the investor that is still in the candlestick learning stage, this information may not be fully comprehended. Investors are constantly witnessing promotions showing how a trading program miraculously produces profits, a new 'secret' is being revealed. It is results that will gain an investors confidence. The inherent forces that contribute to the formation of buy or sell signals will show this evidence in results. For example, today's trading revealed an absolutely flat trading market. However, the recommendations from the Candlestick Forum Members area and stock charts being identified in the daily chat room system the show better overall results than the general market. Although the market traded flat, our watchlists were over 95% green.
There are other days when the markets may be up strong. Obviously, most stocks will be up on those type of days. But there will be in inordinate percentage of the stocks participating in candlestick signals or patterns that are producing gains that are much greater than the normal price move that day. It is not unusual to experience owning a position that is on the percent leaders list for a given day. It is not unusual to see the market indexes in a bearish day but a large percent of the candlestick portfolio is still trading positive or the negative moves are very small. Pointing out these observations is not being done in a bragging way. It is to illustrate that candlestick signals have investor sentiment built into their formations that provide much stronger probabilities of a price moving in a specific direction.
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Chat session tonight at 8 pm ET, bring roses, we will keep it relatively short.