Analyze different stocks and markets to understand trends leading to successful trading and possible long term investments
Monday, April 21, 2008
Updated Chart of S&P
We are still progressing towards the upper trendline. Everything is on the chart. No ifs and buts. 1400 also poses as the psychological barrier. I have been long for some weeks now and will continue playing on the long side. There is no need to play on the short side yet.
I have been actively trading for the past 3 years. After 2 years of struggling with stocks, I reached an inflection point in October 2006 and have been making good profits since then. I learnt that identifying trends early and focusing on the fundamentally best stocks in that trend is very important. Moreover just fundamentals are not good enough. You need to complement that with good Technical Analysis to pick great entry points and exits. They say a picture speaks a thousand words and I strongly believe in that. I use trendlines, Fibonacci and Elliott Wave theories as part of my TA tool sets. Last but not the least, one needs to keep accurate trading records and have a sound money management system to succeed.
No comments:
Post a Comment