When we are reading charts and making decisions on probable price direction, it has less to do with the underlying company and more to do with people's perception of that company's current share price and the company's future prospects.
Trading without a full understanding of the markets and using the wrong tools is something I see often
Well, I decided to take a relaxing break from the seriousness of trading to look at the lighter side of stock analysis.
I decided to detail more of how I identify probable price action at supply and demand levels
Volume can give many clues as to the strength of price movement and even information as to the thoughts and actions of the masses involved in a security.
If you have been reading the Lessons from the Pros for any time now, you know that to execute trades, we rely on supply and demand levels.
Ah, the ever present question as to where a trader should place stops.
When people ask me what training has helped me become successful as a trader, they are usually surprised to hear that it is my background in psychology.
A popular question when I was being interviewed by the Indian media was, "Do you think the Quantitative Easing Part 2 will work?" My immediate response is usually, "If the QE program by the Fed is so effective for getting the US economy on track, why did we have to have a second round?"
The simple fact that there had to be a QE2 signals the effectiveness of QE1
Before you can fly, you must learn the basics: Using the safety gear, rigging the equipment, how to control the glider while on the ground, takeoff and landing procedures, wind effects, and of course, control of the glider in flight.
I have been fortunate enough to be able to spend time virtually with some of the brightest traders I have ever met and want to continue to contribute to their, and my, education and trading profitability.