Learning How to Trade Begins with Selecting the Right Stock
If you are a new or beginning Retail Trader, there are many exciting new ways to find stocks quickly and easily. The goal needs to be to learn how to use your software to maximize time and efforts, while generating the best list of stocks for potential trades for Swing Trading, Position Trading, or Day Trading. These are the most popular trading styles, and all begin by studying the stock chart.TechniTrader is "The Gold Standard in Stock Market Education." Go to the TechniTrader.com Learning Center and watch The Basics of the Stock Market for New Investors and Beginning Traders Webinar Lessons, to experience for yourself the excellence of TechniTrader education.
1. Use Stock Scans to find stocks to trade that fit YOUR criteria
rather than using recommended stocks, or guru stock lists. Most of the time,
recommended stocks get you very late into the trend. You want to find stocks
that have high profit potential, rather than stocks the giant Institutions are
selling because the stock was recommended by a guru.
2. Use Candlestick Charts to analyze how far the stock will move based
on your trading style entry, exit point gain potential, and risk tolerance.
TechniTrader is "The Gold Standard in Stock Market Education." Go to
the TechniTrader.com Learning Center and watch the How to Trade the Stock
Market webinar, to experience for yourself the excellence of TechniTrader
education.
3. Use Stock Leading Indicators that
tell you that the giant Institutions using Dark Pools have been buying the
stock, even while the stock price has not moved up. High Frequency Traders
chase the Dark Pool buying by the Institutions. If you want to get in on big
gains, you need to be in before the High Frequency Traders run up the stock
price.
5. Determine how to Enter the Stock and when to Exit the Stock for the highest profit for that trade. By understanding when to exit you can sell the stock at the right time, rather than seeing your profits disappear as the stock encounters profit taking.
TechniTrader is "The Gold Standard in Stock Market Education." Go to the TechniTrader.com Learning Center and watch the Stock Charts Explained Webinar for beginners, to experience for yourself the excellence of TechniTrader education.
How to find Stocks quickly with a 5 Step Process begins with setting up your charting software so that you are ready to go.
The first thing you need to do is create a white chart background, with black and white Candlesticks. Studies over many years have shown that black charts are much harder to read and interpret. In addition those who use black charts have a 25-30% lower profitability, a higher number of losing trades, find trading frustrating, hard to do, and time consuming.
A white chart makes reading the chart much easier, because that is how you learned to read in school. Textbooks in school do not have black paper and colored ink, they have white paper with black print. Your brain is hardwired to be highly proficient at reading a white background with black text. Those who do use the black backgrounds are using them because it is the “cool” or the hot new way to read charts.
Those who are serious about trading, use white chart backgrounds. If you are a new or beginner trader this is going to make reading the chart far easier and simpler. So the first thing to do is set up your charts to look like the example below.
The indicators shown in this chart example may be different than what you have been told to use by others. The most important indicators in the current Stock Market, are not price indicators or momentum indicators.
TechniTrader is "The Gold Standard in Stock Market Education." Go to the TechniTrader.com Learning Center and watch a wide variety of webinars, to experience for yourself the excellence of TechniTrader education.
Followers of this blog may request a specific article topic by emailing: info@technitrader.com
Trade
Wisely,
Martha
Stokes CMT
TechniTrader technical analysis using a TC2000 chart, courtesy of Worden Bros.
Chartered Market Technician
Instructor & Developer of TechniTrader Stock and Option Courses
TechniTrader DVDs with every course.
©2016–2024 Decisions Unlimited, Inc. dba TechniTrader. All rights reserved.
TechniTrader is also a registered trademark of Decisions Unlimited, Inc.
Disclaimer: All statements are the opinions of TechniTrader, its instructors and/or employees, and are not to be construed as anything more than an opinion. TechniTrader is not a broker or an investment advisor; it is strictly an educational service. There is risk in trading financial assets and derivatives. Due diligence is required for any investment. It should not be assumed that the methods or techniques presented cannot result in losses. Examples presented are for educational purposes only.