Technical analysis of the stock market, or any other market such as Forex, Bonds, Futures, is how most traders and investors make their trading decisions. This is as opposed to fundamental analysis which most people more agree is pretty much done as a way of making trading decisions, unless of course you are Warren Buffet!.
You only have to think back to major stock market scams like Enron to know that it is almost impossible for the average, and even very sophisticated fund manager or hedge fund trader to really know what the real financial state of a company is.
Just by reading the balance sheet and other quaterly reports they release gives you a very poor insight into the real health of the company. Whereas the technical analysis charts of the company tend to give the real picture of what the market thinks of the value of the company. In the case of Enron even simple technical analysis told you to SELL when the stock was in the $80-90 range, this is why technical analysis of stocks is so popular.
So what is the secret to technical analysis?, I’m about to tell you, here are my golden rules:
* Only use 3-5 simple technical analysis indicators
* Make sure that you understand how the indicators that you have selected work, what the parameter settings are and in what market conditions they are effective
* After selecting your indicators and parameter settings don’t mess with them.
The real secret to technical analysis is to get VERY familiar with your choosen indicators, and really this can only be done by watching and studying the market, so that you get to the point that you TRUST them.
The fact is that in any market, for each bar, there are only 5 pieces of information, the open, close, high, low and volume, yet there are now hundreds of indicators. Most of these indicators are displaying the same information and so are redundant.
For the record my set of indicators are:
* 4 Simple Moving Averages
* Bollinger Bands
* MACD
* Stochastics
But the way I use them is quite special, to learn more about how to become an expert at technical analysis visit:
A907156389
Query ‘Technical Analysis’ on the internet and you will be swamped with material, but after much investigation I un-earthed Top Dog Trading.
Long before I finally started trading Share markets, I became aware that fundamental analysis was out of the question, but reading share charts was something I was much more comfortable with.
What made me decide to take the Top Dog Trading course to learn Share trading?…. A number of things besides the overwhelming need to trade better and to halt my run of losing trades; was that I understood what Dr Barry Burns was saying on his website and most of the training is supported by the detailed videos which makes it much simpler to get your head around. A further qualifier was Barry’s CV; it is impeccable, a business man who trades professionally, he is also a highly regarded speaker and writer.
So I subscribed to his free 5 video course on learning to trade to see if I felt good about his analysis systems.
Prior to this, I had completed several other courses on technical analysis relating to Forex trading but still did not feel confident in my analysis that would help me trade successfully, all this changed once I came across Dr Barry Burns, I now feel confident that I can make the business of share trading a success.
Having completed Barry’s courses I have not only fully comprehended how to execute his methods but also developed a far deeper understanding of the Share market & the charts but more critically the money management and personal philosophies that are essential to becoming a successful Share trader.
As you progress you will discover that Barry explains the analysis rules simply and clearly, then gives upto date chart examples with all their erratic moves showing how to make the rules work profitably. This is all achieved via a vast selection of videos.
Barry teaches methods, which when stuck to, provide a good ratio of wins to losses with tight control on the losses, so when one does have a losing trade (which even the best traders do) the hurt is not too severe.
Barry’s tutorials are the best Share trading courses that I have found and I would highly recommend that you give his FREE course a go. This course has 5 videos that introduce you to some of the most powerful trading material I’ve ever seen.
I have completed the course, loved it, and learned a lot from it and have gone on to Barry’s more advanced courses. My wish to learn Share trading has turned out to be very profitable.
Explore Barry’s Free Course for yourself:
