Analyze different stocks and markets to understand trends leading to successful trading and possible long term investments
Friday, September 19, 2008
Wachovia Corp Chart
Wachovia Corp is printing a strong bullish candle. Even though the candle is black right now, the very important part is that it is breaking out of downtrend channel. The breakout is happenning on very strong volume. This indicates future higher prices.
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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