posted
Hi, Can someone please explain how to do a technical analysis of charts. what charts should be used for technical analysis and how do you come to conclusion that u have to buy * a particular point and sell * a particular point. what should you look for in a chart.
Also what type of news I should be looking for. I know lot of people know by the end of the day that this sXYZ stock is going to run tomorrow morning.
How do they find out these stocks. what do they do?
I am trying to do day trading and was looking for answers. Your help will be greatly appreciated.
sorry I am a newbie to this world.
Thanks in advance for ur help.
Posts: 14 | Registered: Oct 2005
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what type of News I should be looking for. I did purchased this yesterday evening after the following news "PlanetLink Announces Contract With Fruge's Distribution, Inc." PLKC
Since there was a contract, i thought it might work tomorrow as I have seen in this group to look for "Two big words I look for more and more is "contract" and "merger" in a news story. If you ever find a stock with new goverment contracts or a contract with some big company it will likely be a good stock. "
posted
I am certainly not an expert, but if you are a "newbie", definately stay away from daytrading, chances are you will be eaten alive. That is the harsh reality of it. Daytrading is for more experienced traders. And even they get kicked around from time to time. Read about short-term trading. Also, read everything in the stockcharts.com education section, as mentioned by WARPEDMIND above. As for charts, understand candlestick charts and some of the specific candlestick patterns to look for. Learn about indicators like, RSI,MACD,OBV,. Also, moving averages and volume. All of these things will give you a better idea of when to get into and out of a trade. Then paper trade for a while. There are many other members on this board that will help you with book recomendations and steer you in the right direction when it comes to what kind of news is important, and what to look out for. So listen up, and take notes from the members that do reply. This is just a start, and remember, the more you read, the more you increase your odds on making a smart trade. You don't want to show up with a knife, to a gun fight.
Posts: 20 | Registered: Dec 2004
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posted
TajUdDin.. Technical Analysis involves interpreting charts and indicators. There are several types of charts (bar, candlesticks, etc..). Which type you use depends on your preference. Bar charts are simple to understand, but Candlestick charts require more extensive knowledge to interpret.. There are dozens of indicators. Again, which ones you use depends on your preference. I don't know that any one indicator has been proven far superior to others. But at the very least you should be familiar with the most common ones that indicate whether a stock is oversold or overbought, such as Williams %R and Stochastics %K and %D crossovers. Many traders also use MACD and RSI. If you are just beginning, it's probably best to become familiar with two or three indicators first, and then gradually study others. It is also important to become familiar with trend lines, support levels and resistance levels. What I'm saying is that technical analysis is not something you learn overnight. You can spend years learning and trying new things,and still, nobody knows it all.What works for one person does not necessarily work for another. What works this month may not work next month. Good Luck.
Posts: 217 | From: Texas | Registered: Jun 2003
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posted
^^^^ everyone is giving good advice.. the best one is don't get into daytrading.. your not experienced enough.. your just beginning.. stick to swing/position trading... swing being that you trade from 2 to 5 days of a particular stock and position trading being that you trade more then one week of a particular stocks but less then a year... below are book recommendations:
A Beginner's Guide to Short-Term Trading by Toni Turner www.toniturner.com
How I Made $2,000,000 in the Stock Market by Nicolas Darvas
The Market Wizards by Jack D. Schwager
The New Market Wizards by Jack D. Schwager
Reminiscences of a Stock Operator by Edwin Lefevre
These books should help answer your questions as well as looking into the mind of professional traders... any other book recommendations you would like you can do a search on my past posts... on this site...
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
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posted
I use indicators to give me a signal of when a stock will likely uptrend. Then I Use candlestick cofirmation to support the indicator. It is important to study the past price history and the past indicators history. If you are using indicators then make sure the indicators correlate with the price of the stock. (Not all indicators give you entry or exit points, some are for supporting other indicators while others mark the strength of a trend others mark volume with price). For instance stock XXXX RSI(14) dropped between 25 and 30 3 times in the last two years. Each time the RSI dropped to these levels an uptrend began. In this case RSI(14) could be said to be a reliable indicator. I would then put stock XXXX on a watchlist and when RSI(14) dropped into the 25 to 30 range I would watch the candlesticks and wait for bullish confirmation. I would then enter the stock. There are way too many indicators to explain to you as MACHIEVELLI said. I would also suggest that you stay away from daytrading for now. You must have some knowledge of level II to have a realistic chance of making money in the daytrading game. Study up on the use of indicators and technical analysis.
posted
quote"what type of News I should be looking for. I did purchased this yesterday evening after the following news "PlanetLink Announces Contract With Fruge's Distribution, Inc." PLKC
Since there was a contract, i thought it might work tomorrow as I have seen in this group to look for "Two big words I look for more and more is "contract" and "merger" in a news story. If you ever find a stock with new goverment contracts or a contract with some big company it will likely be a good stock. "
but it didnot work.
what should I be looking for in the NEWS.
reply, one thing is that I said big contracts. That one doesnt look real big. At least in that PR it is hard to say. In that PR they got a contract with a company ive never heard of(fruge) and dont specify the worth of it. Perhaps they get 10 contracts a year of that amount. This is why I keep stressing that if a person wants to trade on news it is best to paper trade first and study why some go up and some dont. I may see 3 or 4 contract stories and buy none of them because they are small and therefore risky. I didnt mean those two words were magical words but could be indicators of big news. Also, everyone makes mistakes because it is impossible to predict a stock 100 percent of the time so I wouldnt say the method is falted but as all stock trading methods its not 100 percent and involves risk. If someone trys to pick a runner and looses 8 percent and then the next time gains 600 percent and then looses 10 percent and then gains 52 percent is that a good trading method or not? He is only being right 50 percent of the time. I wouldnt want anyone to loose money on anthing I post so again I say, paper trade first until you are more profitable than not and then use real money. there are other factors I dont have time to write about that you would need to learn too like the right os,volume,spread,is the chart down or up,the price of the stock and how that effects probability of a high gain versus a low,suport and resistance,timing,past movements on news for that stock to see what moved it,entry/exit points,stop loss,the wieghtyness of the news ect... I will try to make my future posts more clear so nobody would loose money on anything I post.
Posts: 205 | From: ca | Registered: Aug 2005
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