freeus,
<< What is the most organized way to learning all that you have learned on T.A.? >>
People don't often use my name and "organized" in the same sentence. Still, luckily for me, even a blind old hen occasionally finds a kernel of corn in the barnyard <ggg>.
You might want to direct this question to Vendit and others. I certainly do not consider myself any kind of authority.
But, FWIW, my suggestion is to read all you can, but don't assume that it is the Final Word. Get books on TA, Japanese candlestick analysis, momentum trading methods, etc. Read them thoroughly. Compare and contrast different approaches.
To me, this is only a beginning. The real teacher is experience. So, look at charts, more charts and still more charts. When you've finished with that, then look at a whole lot more charts.
I would encourage you to not only look at charts, but take some notes on what you think they signify, and form some idea about where the chart is headed next. Do not limit yourself to uptrending stocks, but look at all: uptrending, downtrending, and sideways trending. Try to classify each chart you look at into one of these three categories. Then, follow them over time, to get a feel for where you were right, and where you were wrong, and why.
Direct questions to whoever you think might be in a position to help. Then, reformulate your ideas and see how that works out going forward.
Keep an open mind. You will be wrong a lot. You can take that one to the bank. But try to be quick to see where you are wrong, so you can quickly discard things which are not helping, and pick up things which might.
Try to accumulate a limited number of trading tools, and learn them well. I think you will find that most good traders do this. I believe Vendit, for example, relies primarily on the chart (for trend, support and resistance points), candlesticks, and just a couple of technical indicators (primarily OBV, Williams, stochastics, MFI and MACD). I don't think he uses much else, but he has developed great skill in these tools, and they therefore work very well for him, and I think he'd tell you he feels very comfortable with them.
There are many, many such tools available, and you might find that you feel more comfortable with some tools, less so with others. Probably the more you have that you feel comfortable with, and fairly confident of, the better, but too many can be confusing also.
Also, I would try to get a handle on general market indicators, since no stock trades in a vacuum. Included in this category are sector indices, which can help you determine what sectors money is flowing out of, and what sectors money is flowing into. Technical analysis works much better when there is momentum into the sector, and you'd be well advised to use technical/chart/candlestick analysis in sectors that are of increasing interest (for long positions), or decreasing interest (for short positions).
Other general market indicators that can tell you a lot about the general market trends include put/call ratios, TRIN, and such like. These, combined with sector overviews, can help direct your efforts into more fruitful areas.
Finally, I would search out sources of reliable information that you can access quickly. Sometimes that might mean paying somebody to provide you with that, and if it increases your efficiency and effectiveness, and quickens the learning curve, then it is money well spent, IMHO. You will eventually find your sources, and these should enable you to quickly access information, and filter out that which is irrelevant. Don't waste time and effort pursuing information which is not relevant, and determines little.
And, a couple of caveats that I should have tatooed on my mouse hand, somewhat trite perhaps, but nonetheless essential to bear in mind at all times:
1. The trend is your friend: a rising tide raises all boats, and a sinking tide lowers all boats. [but a downtrend can be your friend just as much as an uptrend].
2. When elephants move, mice get trampled. Try to figure out what the elephants are up to, and act accordingly. By their sheer weight, they largely determine stock price movements, not anything else. Fundamentals, balance sheets, earnings reports, news, current events, and so on are only surrogates, and may or may not have an effect on the elephants, and the effect they have may be counterintuitive. Watch their feet. That's how elephants move, regardless of the reason they move, which may frequently be irrational, though there will never be a shortage of talking heads to "explain" their movements.
3. Markets are manipulated, mostly by elephants and those that work for them, and some markets are very heavily manipulated, approaching the point of a rigged game [stay away from these]. Assume that the elephants and anybody that works directly or indirectly for them are intent on one thing: separating you from your money. Most markets are, IMHO, an organized method to sytematically transfer wealth from mice to elephants, or at least that's where attempts are relentlessly directed towards.
4. Develop a discipline. Set rules for yourself, and stick to them. Most traders will tell you that the bulk of their losses occurred because they broke their own rules, usually because they were unduly influenced by those two ancient demons, greed and fear, which have proved the undoing of many a trader.
5. Determine in advance the maximum loss you are willing to accept on a trade. For many, this is at least partly determined by short-term support/resistance levels, but some use an absolute amount, such as 4% per trade. There are many approaches here, and also many approaches to entry points, and profit goals. Whatever your approach, plan it in advance, and stick to it. Use stops religiously; they will save you further losses again and again, and though you get stopped out, remember that the only thing worse than a 4% loss is a loss greater than 4%. The best traders are adamant about capital preservation, and limiting downside risk/losses, and that's why they have much more capital than I to concern themselves with preserving.
Again, I do not consider myself any kind of expert, so I would encourage you to consult many others. I am continually learning as well, just as you are.
Hope this helps, and as always, this is JMVHO.............
Walkingshadow |
