Every technical analyst has to go through the grind. It doesn’t matter what the starting point was – a book, a course, a video and a talk that sparked the interest. It creates the desire to learn, to know, to apply and to profit. Then begins the journey. Those who are impatient with the learning process and want to accelerate straight to the profit stage by cutting the journey short, confine it to what they believe “works”. They come to this conclusion through some hasty or shabby process of elimination. To their own discomfiture, this seldom works. This then results in two things – many give up, saying this ‘doesn’t work’ while a few others are able to say ‘maybe I didn’t know enough to make it work’. The latter group goes back to the drawing board, this time a bit more serious about the learning process. Eventually, you finish the learning to some extent and now are ready to take the plunge into the world of trading … [Read more...] about The right way to read stock technical charts & interpret them
Best time frame for intraday trading
Most of us identify trading with the short term buying and selling of securities with the intent of making profits. Of course, trading has to be done with finesse, insights and with a lot of discipline. Of these characteristics, it is discipline that matters the most. However, trading itself has a lot of sub components. There are different types of trading styles that traders adopt and each has its own unique features and skill sets required. Here are some very common styles of trading that traders generally follow. Taking a longer term view with Positional Trades In terms of time frame, positional trading has a longer time implication. Positional trading is built around opportunities and hence could span a period of a few weeks to a few months to even a couple of years. Position traders typically use a combination of technical charts, news flows and fundamental triggers to make trading decisions. While fundamentals are used to ratify a story, the news flows are used as the trigger … [Read more...] about Margin trading or positional trades: Which style suits you best?
By Elena Popina, Sarah Ponczek and Vildana Hajric Going strictly by the VIX, the US stock market just saw its biggest weekly drop in volatility since March. Go by traders’ nerves and you’d have a hard time framing the past few days as anything but another trial for markets that have known little but upheaval for three months. Exhausted by December convulsions? You’re getting no respite in January, as Thursday’s 2.5 per cent S&P 500 plunge gave way to a 3.4 per cent rally, the third biggest since 2012. Investor sentiment that was throttled by Apple’s revenue warning was revived by the best employment report in 10 months and calming words from Federal Reserve Chairman Jerome Powell. “It’s been dizzying, if anything. We see these directional moves that are quite large and it’s something that I’ve never seen in the market before,” said Delores Rubin, senior equities trader at Deutsche Bank Wealth Management. “The … [Read more...] about All the days are big days for stocks as bulls, bears trade blows
By Vildana Hajric , Sarah Ponczek , Lu Wang , and Elena Popina While it feels like it won’t stop, someday it will. To get a handle on when equities might bottom out, analysts and investors turn to everything from valuations to technical analysis and history. Right now, they’re struggling to frame a cheerful message. It’s an inexact science, to put it mildly, particularly when as much is swirling around as it is now. Global growth is slowing, Brexit drags on, a trade war rages, stimulus of all types is being yanked and the yield curve is flirting with an inversion. Still, as bad as it feels, at some point things get priced in. “The market today is oversold. Does it mean it won’t go lower? No,” said Joseph Tanious, a senior investment strategist at Bessemer Trust in Los Angeles, which oversees more than $100 billion. “It’s hard to say what is exactly the bottom of something that’s so technical in nature.” Going strictly by … [Read more...] about How bad will it get for US stock market? Investors turn to history