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I know
that most men would prefer having a root canal without novocaine than
stop and ask for directions. After all, if there's gas in the
tank, a man is never lost. Women know to stop and ask for
directions. However, in the stock market the man's logic can be
fatal to his trading. Wouldn't it make more sense to use a map,
which traders call charts, to "see" where the sentiment is regarding the
stock price going forward in time?
"All through time,
people have basically acted and reacted the same way in the market
as a result of: greed, fear, ignorance, and hope. That is why the
numerical formations and patterns recur on a constant basis."--Jesse
Livermore
Trading the Stock Market
training programs
available
here. |
Traders have memories about price action (I know
I do) and those memories are forever printed in the form of a chart
detailing where traders bought and sold out of
fear and greed. Some of those memories are delightful (past
profit at that price level) and some are painful (losses when bought at
that level). Is it any wonder a major aspect of chart reading has
to do with support and resistance levels? Traders learn to trust their
charts because, in the end, the patterns are more right than wrong thus
putting the odds in our favor. The charts are telling us
where the
fear and greed is located. Do
you think that might be helpful? Bet on it!!
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