Candlestick Trading Blog

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Everybody enjoys pulling out that dusty old box that holds the family photographs; you remember, the one with Uncle John on his tractor, another with parents wearing those awful hats on their cruise, and of course the one of you crying while you sat on Santa’s lap. There is something refreshing about looking back at the past; it seems to help strengthen our memories and even make things in the present seem clearer. The same is true with looking again at the stock market principles that you have already learned. The things that have made you successful in the stock market so far are good to remember.

Remembering What Worked in the Past
You have made money and your stock trading plan has been successful. Now is the time to pull it out and review the stock market principles that you included in it. Have you implemented stock market strategies that you never put in your plan or did you change your strategy and fail to write it down? Now is the time to update things and take a trip down the “memory lane” of your stock market principles.

In addition, take a look at other investors; there are always things you can learn from others that have found success in the market. Have you ever read anything from Benjamin Graham? He is known as the “Dean of Wall Street”. How about anything concerning the strategies of Warren Buffett? He is widely considered the greatest investor ever on Wall Street. People that are great successes usually have implemented great stock market principles that create their success. Take the time to learn from the experts. As you are beginning investing in the stock market, you can benefit from those who have already been there and from the stock market principles that are important to them.

Bad Stocks are Always Bad Stocks
This stock market principle is like holding a bad hand grenade; the two best things to do with a faulty grenade are to avoid having one and if you do have one, to get rid of it fast. The same is true of bad stocks; even though stock volatility can give the illusion that a bad stock is ok, you are still holding a faulty grenade. One wrong move and you can be left with some devastating consequences. Stay true to your stock trading system and don’t get caught up chasing bad stocks.

Remember that Investing Can Be a Game of Chance
If you choose to participate in day trading, IPO flipping, or buying from your “friends’” tips, you might as well have taken your investment money to the local casino. Remember the stock market principle that technical analysis and stock charting techniques eliminate risk and improve your chances to make money investing in stock.

Any Job is Easier if You Use the Proper Tools
No matter what you are doing, it’s hard to succeed without the right tools. Albert Pujols is a great baseball player but he will struggle mightily if you take away his bat and ball glove. This is also a wise stock market principle; you might have the best investment strategies ever but if you are not using your fundamental and technical analysis tools, you just won’t get the results you want. In addition, if you are using a stock investing system like Japanese Candlesticks, you will increase your chances of success even more. This system of chart and stock market data analysis gives you the ability to view today’s events to predict future trends.

Conclusion
The stock market principles that shaped your trading plan before are still good for today. Like you did with those dusty old photos, you should pull out your trading plan and look over the stock market principles it contains. The good news is that you won’t have that embarrassing picture with Santa to view!