Analyze different stocks and markets to understand trends leading to successful trading and possible long term investments
Wednesday, February 25, 2009
Market is ready to rally- Bottomed out ?
Double bottom on the S&P 500 was formed yesterday. Watch STO, RSI and the bullish engulfer candle. We are ready for major rally in the US markets !!! I may be too soon to call this a bottom; but let's watch it over the next few days
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.
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