Putting it all Together

Actually it’s easier than you think and really the best way to learn is to start trading with small stakes and checking a few charts and the accompanying videos that I have made available for you to watch. On each video I explain how and why and give technical data.

From following these you will develop a greater understanding as to how we put all this together. Practice makes perfect as your mum would have probably told you, and well in this case she would be right. After applying the techniques that you have learnt to your own charts and having followed our own trades, you will be in an enviable position to have learnt a very powerful system indeed.

Getting Charts and Information:

First stop for your charts & information would be our resources section. We have outlined key services that we feel deliver either free, or good value services that allow you to do everything that I have taught you here. We have also provided a massive database of over 450 companies that provide services, broken down into category. I am positive you will find a service or software program there, which suits you. It’s mostly down to taste.

The key requirements you need from a charting service or program are: Simple & Exponential Moving Averages that can be configured with up to 4 displayed on screen at one time. RSI, Momentum & Accumulation / Distribution Indicators. The ability to save charts and data mine if possible. If you’re not sure if the service you like has these, email them the above requirements and they will let you know.

My personal favourite website for online charts is www.bigcharts.com – they give you lots of interactive tools to use, you can draw trends, add all the above additional tools and more. What’s more it’s simple to use and you can search on both US & UK stocks. To search for a US Stock simply enter the Ticker code, to search for a UK stock say Barclays Bank, you would use UK:BARC the UK: denotes a UK stock. If all that wasn’t enough it’s free.

A word about End of Day Data and Intraday Data:

There are many arguments for EOD and ID, and it really depends on your trading style.

Personally, I use EOD and that’s what I’ve mainly used in my illustrated charts. What’s more, I feel that the EOD price is the most important price of the day. Simply because it reflects on how the market felt about that given stock at the close of business. Investors like to close positions if they can before the end of day. So if the current day’s trading suggests that stock XYZ has ended up positive on the day and we’re using EOD data, then this is a good strong sign. Likewise if it is negative, then the overall feeling on that stock is not good at the close of business that day.

I like to trade but I also like to live, sounds a little corny, but so many traders end up with square eyes looking for the slightest moving in their intraday charts – breaking them down per hour, per 30 min, 10 mins even down to the tick. Sweating every single heartbeat.

Essentially we don’t intraday trade and the closest we get to it, is when we’re scalping the markets. So don’t sweat it, and whichever software program you use, avoid spending an awful lot of money on intraday data.

The techniques we use can be used intraday, end of day, daily, weekly or whatever. In my opinion, it’s a good idea to have the ability to break away from the markets. Intraday data spoils you and also stresses you, as you see each and every move your trade will do throughout the day.

If you’re stressing so much about the trade anyway and find yourself looking at the screen in anguish, then chances are you shouldn’t have entered that trade at all.

Information:

As far as getting information. We have to be careful here and once again I will point out a warning on the information that you may read.

Don’t put too much emphasis on following Forums, regardless of the source. The majority of the people on there don’t know what they’re talking about, or indeed just like the sound of their own voice. Forums are full of dangerous tips and following any of them is for the foolish.

You have an incredibly powerful system at your finger tips: your mind and judgement. Use it, don’t rely on what someone else thinks you should be putting your money on. So I shall repeat – DO NOT FOLLOW FORUM TIPS.

The only information you should read is that supplied by reputable sources, such a Reuters, Financial Times etc. Keep an eye on news regarding commodities as I discussed in the first part of this course.

Some of the software services and online services allow you to look at news relating to the share that you are looking at. Look at Director Dealings and if the CEO has purchased or sold loads of stock, then there is usually a good reason behind that. Only look for key directors only.

I would see the news etc. as much like another tiny part of the jigsaw. Once again don’t make your trading decisions based entirely on what’s on the news, unless something dramatic such as a war happens. Then you can see emotion hit the Indices like never before and you can make a fortune. Charts go down when war starts as positive news filters through, charts swing up and when the war may last longer than expected they fall just as dramatically.

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