Category — Technical Analysis

If you have been trading for a while and have used some Technical Analysis you would by now have heard of Fibonacci Retracements.

Fibonacci, was actually named Leonardo of Pisa. He was born in Pisa, Italy,home of the Famous Leaning Tower of Pisa around the time of 1175 A.D. Historically he is recognized as the greatest European mathematicians of the middle ages.

He is also credited with introducing the Arabic-Hindu numeric system to Europe. He also has been attributed to introducing the decimal system as well. These have become the basis of mathematics that we are currently using today. One very bright boy. [Read more →]

Amongst the first errors new traders make when they begin trading in the stock market is putting in a lot of wasted time and effort into anticipating trends. Numerous traders nowdays are using very complicated formulas, indicators, and various other systems in order to help them to identify possible future trends in the market place.

Therefore it is not surprising that they invariably end up with plotting so many indicators on a single chart that they end up so confused that they can’t even see the share prices any longer. The trouble here is that they have lost sight of making a simple basic decision about when to buy and when to sell. Hopefully at a profit.

The mistake a lot of traders are guilty of making is when they are trying to accomplish too much at once. The major problem here is that the trader has the attitude that the more complicated their system is the easier it will be at “predicting” trends. This is all but a pipe dream.. [Read more →]

There are literally thousands of stocks listed in the various stock markets which are quite suitable for trading profitably, but how does a trader go about choosing his/her stock selection successfully?

In this particular instance I am not referring to the commonly used basic fundamental approach. This where the trader analyses the various fundamentals of the company, which also includes researching the performance results and checking its price-earnings ratios and other basics fundamentals.

Overall, many successful traders who genuinely make their living off by trading professionally in the stock markets, quite often their preferred method seems to be the technical analysis approach.

This means of course that they are using charting methods, and the other various technical indicators which pertains to their selected stock. What these traders are actually trying to do is to scan for stocks that will meet some of their preselected indicators or criteria. The ultimate aim of course is to show the trader which stocks are beginning to move or have already begun to move in the desired direction. [Read more →]