Chart Talk

Practically anything we do requires us to look before acting, Awareness of your surroundings in all instances can mean the difference between making a sound decision and a needlessly risky one. An NFL quarterback must not only read the defense before calling a play but must also know where his receivers and blockers are in order to properly execute. A mountain climber making a careful descent down a steep rock face needs to know precisely where each next step will be before taking it, or else risk catastrophe. We're taught at an early age to look both ways before crossing the street. And we most certainly cannot make a trade without first studying the chart in order to understand where the best point of entry exists, provided one exists at all. There are a variety of trading styles and therefore no single way of approaching a trade. However, one of the most reliable approaches involves buying support and selling resistance. As we've discussed previously and repeatedly, support ...

Stock market "experts" are a-dime-a-dozen, and a good many of them don't even trade and barely invest. Chances are, you know exactly the type. Hindsight Millionaires is what I like to call them, and the world is full of them. They're way too eager to share what they would have done, or what you SHOULD have done in order to make a killing in the market. "You could have made a fortune today if you had just gone short on the open and walked away until the close," some nudnik once told me. Ya think? Thanks pal, so how did you  do going short on the open and walking away? Crickets. But there is something to be said for being able to examine stock charts and recognize the formations that could have tipped you off to why the market made the moves that it did. While hindsight won't make you a millionaire, it can add clarity to the markets, which will help you in planning trading strategies that lead to future profits. No trader is infallible and we're eac...