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Stock Profits

Long term investors and day traders can both engage in technical analysis with Candlestick stock charts to gain stock profits. It is mistake to believe that only those involved in technical stock trading use technical analysis tools such Candlestick analysis in order to gain stock profits. The time horizon in day trading is certainly shorter that in long term investing. The day trader will commonly make more trades than the long term investor. However, both can earn the best stock profits in buying at the bottom of the price curve, short selling when there is an indication of a bull market rally turning into a market reversal, and buying calls on stocks when Candlestick pattern formations indicate a pending rise in stock price

Although the intention of the long term investor is commonly to find a stock that he can buy and hold in his stock portfolio he may not hold a given stock any longer than does the short term trader. The wise long term investor focuses on stock profits and does not become enamored of the company whose stock he holds. He will have a manageable number of stocks in his portfolio so that he can review them at least once a week. If either his fundamental analysis of these stocks or his technical analysis of stocks indicates that a stock will cease to perform as expected he will sell stock and reinvest his stock profits.

The wise investor and the smart trader buy stocks when stock prices are low and sell stocks when stock prices are high. To a degree long term investing teaches that picking stocks with a good margin of safety and high intrinsic stock value will lead to the best stock profits over the long term. In general that is correct. However, there is not certainty that a given stock will perform quite exactly as expected. By following both fundamental and technical analysis of stocks in his portfolio the long term investor can reap the maximum reward from his investments and not suffer through long periods without profits.

The short term trader, especially the day trader knows that the best stock profits are often obtained during quick market moves. The ability to use Candlestick patterns to forecast large jumps in stock price is part of what makes trading profitable. The other part is to be able to anticipate when a market trend will continue and when a drop in a stock price is a short term correction versus a long term change in the stockís fortunes. Another matter that separates the trader from the investor is in taking advantage of falling stock prices. Selling short can be very profitable for the trader. The trader finds a stock that is the opposite of what the long term investor wants. He sells short or buys puts on the stock and profits on its downward fall. When it turns around he mimics the long term investor again in analysis of upward possibilities. Both look for stock profits and both profit from keeping an eye on market sentiment with Candlestick signals.

No Market Direction

Special Guest Speaker Presentation

Thursday April 14th, you can get a sneak peek into a powerful trading system thatís demonstrated impressive accuracy at producing high profit trades.

Special Guest, Gareth Feighery,  demonstrates  the Market Timer and its astonishing capabilities 

Chat session tonight at 8 PM ET, Everyone is welcome! 

Good Investing,

The Candlestick Forum Team

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