Techical analysis for stocks?
Hi there folks,
I recently started trading stocks but have very limited knowledge of technical analysis; other than the basics, (trends, types of charts, Moving averages) i know nothing. Can you folks recommend a book , a course or even someone willing to tutor me, that explain how to use all the indicators when it comes to identify signals.
I just want to complement my knowledge of fundamental with the technical side to identify entry and exit points.
Thanks so much.
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about 1 year ago
I wouldn’t waste your time. Why not spend the time on fundamental analysis instead.
If you are really set on this try the forum Trade2win you will enjoy it.
Reason why I don’t like it is that it seems to attract people who are looking for an easy formula to forecast price movement. On the whole it doesn’t exist. As they say the past is no guide to the future.
about 1 year ago
Here are two sites that you’ll find interesting
http://www.stockta.com/
http://stockcharts.com/
http://www.winninginvesting.com/
These sites will provide leads to publications as well as other sites that will provide what, not only what you want but what you need.
I respectfully disagree some that say Techincals are not important since you don’t judge the future by looking at the past.
To invest/trade without some knowledge of the technicals would be foolish. You most certainly can see not only the trend of your security but also the sector and the market in general. All professionals know that you don’t go against the trend.
Also, the technical will indicate support and resistance point for the security.
Good luck on your search, I hoped I have helped
about 1 year ago
My take on technical analysis is that it is very interesting. With dozens and dozens of indicators to learn about, it can consume your time and energy. Basically all books on technical analysis are all the same.
The problem with technical analysis is that you develop paralysis of analysis. You don’t put on a trade because an indicator is not in the right place or worse yet, you don’t get out of a losing trade because an indicator said that it will come back.
From the open of the market until the close there are only two people in the market, buyers and sellers. You can get the best educational material and it is free at the CBOE.
Good Luck,
PS: One indicator worth learning is Candle Sticks.
about 1 year ago
I like them all, just don’t base your buy or sell orders on one indicator. I always pull up a chart with all the indicator on the stocks Im looking at before I place my buy or sell orders in. Since learning these indicator, I can say I have lost out at bigger gains by selling to early,
but…I haven’t taken a loss on a stock since learning about them.
I suggest you read all you can, Yahoo will allow you to pull up a basic Technical analysis charts on all the stocks with some of the indicators.
As for books…..Technical Analysis Explained, by Martin J. Ping.
about 1 year ago
If you’re a rookie in investing or stocks, go to
http://www.finance.yahoo.com.
Open up a portfolio without using real money. You can give yourself as much or as little money to try out the market. The stocks you want to focus on is consumer staples, consumer discretionary, and healthcare. These are DEFENSIVE stocks that will survive through good and bad times. Most of my positions are in these stocks. Some names include 3M, Procter & Gamble, Kimberly Clark, Exxon Mobil, Walmart, Costco. Everybody’s got to eat and wipe their butts regardless of the state of economy. Many of these companies survived through the Great Depression.
That’s the benefits. You can sleep at night knowing your money is doing well. There are NO guarantees that you won’t lose money. It’s just that these stocks are the best. They pay good dividends too.
Then once you’re comfortable and test the waters of the market, you can finally put some real money in. Go to Scottrade.com. They’re excellent for beginners.
If you’re new to stocks, DON’T DAY TRADE. You’ll a rookie in a world of professionals. I tried day-trading with Citigroup and AIG when they were a little bit over $1. I had some luck at first, making about $30 a day but I was way over my head. My luck didn’t last long and I had to rethink my strategy.
Day trading involves A LOT of commissions to the broker. With all the commissions deducted from each trade, you’ll be lucky if you only lose half your money.
I would just day trade using Yahoo! Finance. Open a stimulation account, give yourself $100 worth of fake money and play it in the stimulation format. You’ll see what I mean by losing money every easily.
Good luck.
about 1 year ago
You can try Technical Analysis for dummies. Also, Martin Pring’s Introduction to Technical Analysis is a beginner’s book.
After reading all the basics on TA you may want to pick up some books that delve into the strategies of using indicators. Not all indicators can work together. If you use too many, it will give conflicting signals. Don’t rely on too many indicators but choose 2 to 3 to help you make a decision.