How to trade stocks using chart patterns
This newsletter is about trading stocks using classical chart patterns.
Chart patterns hooked me from the first moment. So hooked was I that I wrote a book that I’m very proud of: “Trading Stocks Using Classical Chart Patterns: A Complete Tactical and Psychological Guide for Beginners and Experienced Traders".
I trade stocks based on patterns I see in stock charts. Stock charts have made these patterns for 100 years and probably since the beginning of freely traded markets.
And stocks will continue to form patterns on charts because . . . human nature doesn’t change.
The patterns are forming now as you read and as I type.
Let’s be clear: trading stocks is speculating. Speculating can be reckless and uninformed. Speculating can also be informed and control for risk. Risk cannot be eliminated. But it can be controlled to very manageable levels. Stock charts help me reduce and manage risk to make trading informed, worthwhile (financially and psychologically), and even intellectually interesting.
Years ago, I looked down on people who traded stocks. And it is unfortunately true that most people who trade stocks take too much risk and don’t know what they are doing. They are looking for a quick way to get rich (there isn’t any).
Now, having traded for nearly 10 years, I realize this: informed and prudent trading—far from requiring or benefitting from a wild gambler’s mindset—required continuous affirmation of worthy values such as patience, diligence, restraint, moving on after setbacks, controlling our ego, and recognizing that our lives are bigger than trading. It is a fine and constructive balance between focus and letting go.
I look at charts, I enter or exit a trade, and live my life while the financial market does whatever it does. If I lose money in a trade, I really don’t care all that much because the loss—even a string of losses that go on for months—are very manageable.
Remember that: you can’t control what the market does. BUT you can control your risk.
Also remember that you don’t have to prove anything to anyone (especially yourself) in the markets.
You don’t have to trade.
Thrift and living within our means are always available and effective ways to build a solid foundation.
If you choose to trade, I look forward to sharing my thoughts with you.
Disclaimer: Everything in this newsletter is for informational and entertainment purposes only and is not to be considered professional advice of any kind. All statements and opinions in this book are not meant to be a solicitation or recommendation to buy, sell, or hold securities. Trading stocks and investing involve risk and may result in financial loss. All trading and investment decision you make are your own.
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