posted
As a newbie of 6-7 weeks dabbling in stocks, please could anyone tell me what chart(s) I would have to learn or understand that would help me notice good entry and exit points.
I see so many different type charts out there as a newbie it's kind of hard to understand which one I should be learning or trying to understand.
And in saying that I honestly don't know what I should be learning so I can see good entry points coming and going.
Any help on this would be much appreciated!
Are there any good web sites out there like how to read chats for dummies or something like that, because what is happening with me is I'm reading through the many posts and hear people saying that there are is a good entry point coming or this is about to burst and run......A part from experience what are these people reading or viewing to make such predictions?
What are your honest recommendations
Any help? Any good sites out there that might show some light?
Thanks!!
-------------------- Watch your pennies and your pounds will take care of themselves! Posts: 200 | Registered: Jul 2005
| IP: Logged |
posted
Easy.. learn all you can about Candlestick charts.. forget all other type of charts.. when you learn about candlesticks you will see what i mean... the Guru of Candlestick Charts is Steve Nison and i highly recommend his book The Candlestick Course as well as his other books on Candlestick charting... you can probably find it cheap on amazon.com or other sites used otherwise check out his website ...
I also highly recommend Toni Turner's books and her site.. the book i recommend above all is her A Beginner's Guide to Short Term Trading.. but also her other books...
posted
I read toni turners book that machievelli mentioned after he recomended it on another post. It is a very good book. It has a lot of valuable info about trading and covers a lot of ground and I also highly recomend it. I also recently read William Oniels book "how to make money in stocks" and found it to be a very good book. It has a lot of sound wisdom in it and is a good book for beginers. I think this is a good foundational book. I started trading recently and have tried a few methods. The one that ive found consistant success with is find some stocks with a perfect uptrend with exellent fundamentals. (probably one out of 20 if you look at only the highest rated stocks) Find out what there lowest support is. Watch your selected stocks till one of them sells to its lowest level of support and buy it there. Sometimes I have to wait a week or more for this to happen. The way Ive been able to get the lowest price of the day is if the stock dropped 10 percent in the morning and then goes up 5 and later in the day starts going down again, I get it when it gets near its daily low. It seems like if it is a strong company with no bad news it doesnt break below its first daily low. I did this on friday with ngs. It dropped in the morning and later came back to it daily low where I got it and then went up a few percentage points to close. There are of course many other factors too,like if it is at its daily low at the end of the day it might gap down so you would want to wait to buy possibly the next day or if bad news came out you wouldnt want to buy it. This takes a lot of patience and can be hard but so far all the stocks ive done this on have gone up 10 to 15 percent in under a week. cnxs and nuro are a couple. See how good a uptrend they have and how ocassionaly they have large selloffs. Also found that by looking at historical stock prices it can give very valuable info. For example, recently I found a company(acmr) that was trending down and reserched it historical quotes. I found out that in the last month it has never gone up more than about .50 or .60 in a day and then typically would go back down lower then it opened at. This stock closed down everyday that month exept a few times it closed slightly under 1 percent higher. I just waited for it to go up .50 and shorted it and watched it drop from there. This is just what ive found affective. I dont post these kinds of stocks because it seems like most people are interested in potential 10 baggers but I think that has a lot more risk to it and often potential 10 baggers tie up peoples money so they cant make any money. Like qbid, some people sound like they put all there money into it and its done nothing but drop. There are many other entry point techniques. Some people prefer to look for potential breakouts or breakdowns. The two books I mentioned both talk about this technique and different chart patterns and technical indicators. I think that takes more experience because ive notice a lot of times a stock looks like it will break out and then doesnt. Your really going to have to study. There are so many factors that could not possibly be mentioned in a short reply. Even a 300pg book doesnt really cover enough.
Posts: 205 | From: ca | Registered: Aug 2005
| IP: Logged |
posted
very good post Tree... anyways other books i would recommend other then the two main ones i recommended are (the William O'Neill one is already mentioned by Tree):
How I made $2,000,000 in the stock market by Nicolas Darvas
How to get started in electronic daytrading by David S. Nassar (i dont recommend you daytrade but i just love this book that i listed it.. he has other books i recommend also on swingtrading etc.)
Market Wizards by Jack Schwager
The New Market Wizards by Jack Schwager
Reminisces of a Stock Operator by Edwin Lefevre
There are other books but it's early in the morning and they escape my mind... if you want do a "search" of my past posts and you will find a treasure trove of books i recommended... but the first two books i recommended are a must have as well as the others... the William O'Neill book really is for stocks in the $20 + range and not for Pennystocks but you could adapt it for Pennies...
Posts: 4669 | Registered: Mar 2004
| IP: Logged |
posted
Eire, hi, we met on NWPO thread when you jumped in...
Charts *are* valuable, but less so in pennies than on big board issues. iow, a chart can look great, ready to pop, but w/o buying pressure will just sit there. As many say, "don't fall in love with a stock"; differentiate between "good company/bad stock," etc, so this, too: don't fall in love with a chart. With pennies, I find the chart often more valuable for exit points than entries. Once you understand some basic indicators (as posted, stockcharts has good "lessons"), run 5- and 15-minute intraday charts. Watch RSI, for sure, but pay particular attention to MACD and whatever makes most sense to you among moneyflow/volume/williams.
As Mach says, candlesticks are effective, too, if they "make sense" to you. Plus, his "readling list" is solid...
posted
http://www.tradesys.co.uk/literature.htm Trading Literature If you can tolertate reading online books heres a link that has some. I personally cant stand online books but they are free. It has william oniels book and one by jack schwager. Many of the other books really suck though and are a waste of time but maybe there are some good ones that I mist. many are 90 percent fluff and 10 percent content making them very difficult to read.
Posts: 205 | From: ca | Registered: Aug 2005
| IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Smile]](smile.gif)
