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|Alias Born:||05/19/2012 3:40:23 PM|
|My Philosophy|| 80% technical
I have no insider information so I just focus on being better at reading the charts than the next guy.
|The Essence of Trading||Realize that trading is kind of like football. One side is trying to push the ball one way, the other is trying to push it the other way. Trading is also kind of like hockey sometimes, one side gets control of the puck and moves it one way, and vice versa. Trading is a lot about one side trying to push the price one way while the other side tries to push it the other way.|
|About Technical Trading|| Technical trading is about filtering out the narrative of any given stock and focusing primarily on the pricing data. In sports this is like ignoring ESPN and just focusing on the statistics to place a bet. In trading you filter out CNBC, message boards, newspapers, and focus primarily on price data. It gives you the bottomline of what someone is willing to pay versus what someone SAYS he thinks a stock should be worth.
Price data is easiest to analyze in visual form via candle stick charting. There are recurring chart patterns that correlate heavily with bullish and bearish moves. Recognizing these patterns in the context of other chart factors takes years of study, but yields high probability outcomes that can accumulate into long term profitability.
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