For all the learners & the experienced ones:
I want to emphasise that the study of the price behaviour of index and stocks with assistance from few methods is the one and only way to make money in the market. It is like going to the market place to buy something or sell what you have. But to get the best bargain, you need to understand the "demand & supply" for that product. More the demand, the prices will be bid higher and more the supply(with less people to buy) lesser will be the price. If you spend some time to figure this one out, you will be in a better position to "buy low and sell higher."
In stock market too, the same logic works. But how do you go about finding this "demand & supply"...Yes..by studying the prices bid in the recent past..how high it was bid., how low it went..and where the last bid closed. I have covered the most minimum basics of Technical analysis and they may be found under "Technical Analysis" in my label section.
Here is a wrap up of what has been studied:
1. Trend Following
3. Moving Averages.
4. Macd (Moving average convergence & Divergence)
6. Tech. Table- Part.1 and Part-2. And the Tech. File.
7. Elliot wave.
Spend your holiday time & week ends to go over these study materials and practice them during market hours. The time spent and dedication shown will fetch you very satisfying results. Once you develop a "discriminating mind" to differentiate a trending market to a sideways market of different time cycles(week, day, hour), your expectations of the market will be so balanced that you will harvest like a seasoned farmer.
Just stay cool..Don't sweat it out. Simply try to understand the various forces at work. If you are relaxed when you are trading, you will make money. Anxiety has no place in this business.
I have selected the last 8 months of daily prices from June.09 to 29th Jan.10 to demonstrate here the discipline with which Technical Analysis could be applied in real time using our recent studies on the following 7 methods.
You may click on the charts to get the complete detailed messages.
4.Macd (Moving average convergence & Divergence)
The buy signals were generated when the indicator reached the "oversold" levels with positive divergences appearing in the hourly charts.(Not shown here).
6.Tech. Table- Part.1 and Part-2. And the Tech. File.
As per this EW analyis, a 4th wave is on and the market would find a bottom in the region of 4650-4750 when it completes a "v'th wave.This 5-wave down could be a part of the 1st wave of the larger down move or a teperory halt to a corrective or end of a corrective which will be resolved in the next few weeks but suffice to state that a temperory bottom will be around the 200sma.
The combination of these methods virtually assures a stupendous returns to a disciplined person and these studies can be carried out on most stocks and indices.
There is no substitute for hard work and discipline.
Armed with the above tools, you may get rich slowly fairly in a faster time.