Candlestick Trading Blog
Traders make money by doing technical analysis of equity price patterns. Traders may make money or lose money based upon their effective or ineffective trading patterns. Part of trading is learning the basics, whether it is trading stocks, trading options, or trading commodities the trader needs to learn to do fundamental and technical analysis to be ready to trade. However, day by day trading is a performance art. Salesmen, artists, athletes, glass blowers, and the like, need to perform on cue. The same applies to traders. The outcomes of their efforts depend upon how well they apply their trades. Commodity trading, stock trading, futures trading, and options trading are all prone to the development of habitual trading patterns, both good and bad. Building and maintaining successful trading patterns comes from planning, training, coaching, practice, and re-evaluation.
Learning How Perform on the Trading Stage If you think of trading as a performance art then everything prior to and following a trading session is practice or review. Both practice and review should be directed toward mastery of performance in the trading arena. Traders begin with innate talents such as the ability to retain large amounts of information and to handle new information and new situations quickly and efficiently. In learning to perform on the trading stage a trader will learn healthy trading patterns. An old saying has it that “90% of life is just showing up.” No matter how well steeped a trader is in Candlestick pattern formations, Candlestick trading tactics, and Candlestick basics in general it is the application that counts in the end, not the depth of knowledge when the trading software is turned off. Trading psychology is such that traders need discipline in order to apply what they know at the right time. With preparation, practice, and review the commodity trader, stock traders, the options trader, and futures trader can develop healthy and successful trading patterns in daily, live trading. Details and Fixes Sometimes a little coaching is in order when personal trading patterns get off track. Although we tend to bring a lot of skill to the trading table we also tend, at time, to bring excess baggage. Having a wise head to guide you during difficult times can make the difference between wallowing in despair and redeveloping successful trading patterns. When the trader experiences a series of unsuccessful trades it is time to review the process. Back testing trading results by reviewing performance as well as data can lead to insights that will improve later performance. When the trader gets lost in the detail and is not sure where to go a little coaching or education, such as Options Training with Stephen Bigelow, may be in order. We Repeat What Works and Avoid What Doesn’t Trading patterns evolve from success and from failure. This is just the reinforcement theory of experimental psychology. However, traders need cues, such as Candlestick patterns. The trouble with trading is that there can be so many cues that knowing when to click the trade can be really confusing. This is where trading patterns evolve. Traders are “rewarded” at a very basic level for the last thing they do before a successful trade and punished if the trade is unsuccessful. Developing successful trading patterns has to do with keeping in mind the entire sequence of activity that truly leads to successful trades as well as failed ones. Sticking with the basics of a system such as Candlestick chart analysis is important in maintaining successful trading patterns. Getting help with things are not working out may be the best way to develop and maintain successful trading patterns.Online Stock Market Reviews presented live via the internet by Stephen Bigalow |
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