I am still reading YTC Book 2 , and along with it stikky stock charts...would take some time to finish..
I am not trading as of now....just trying to visualise trend lines and break of trendlines on charts..
I just read a good analogy on market and stocks..so i wanted to put it here in my words..
Imagine there are many ships & boats in the sea...the sea is calm...so the ships can use their power to go in their intended path...if a ship wants to go faster , it would need to apply more horsepower...but they can go in their intended direction.....just like a stock with some catalyst can go in in its intended direction if market is calm...
But imagine now..that the sea is not calm...the waves are high and aggressive....means sea is having a good move....any ship that is moving in the direction of sea wave would find it little easy to maneuver...as the sea is on its side...
any ship that is on opposite direction to sea direction would have to fight a lot , indeed it will slow down due to sea force....and can be pushed around.....
Same happens with stocks and markets...if market is supporting your stock..it will have a relatively easy ride to its intended direction ...others will face a hard time and could be pushed back...
so it is always better to know how the market is behaving for that day...and then pick stocks that have intention to go in that direction....
exception: a very big ship with load of power can steer its way inspite of the huge sea waves....same way a stock with huge catalyst...
As a beginner try to trade in the direction of the market.....
Also i feel that don't get married to a stock...get the ego out of the way...i have lost a lot because i got struck with a stock and ego came into picture..i would trade every turn assuming it to be the final swing low and would in turn get my ass handed over to me.....it would have been better if i would have dropped that stock after a 3 losses in a row....
all boils down to no plan = less confidence = churned out..
I am not trading as of now....just trying to visualise trend lines and break of trendlines on charts..
I just read a good analogy on market and stocks..so i wanted to put it here in my words..
Imagine there are many ships & boats in the sea...the sea is calm...so the ships can use their power to go in their intended path...if a ship wants to go faster , it would need to apply more horsepower...but they can go in their intended direction.....just like a stock with some catalyst can go in in its intended direction if market is calm...
But imagine now..that the sea is not calm...the waves are high and aggressive....means sea is having a good move....any ship that is moving in the direction of sea wave would find it little easy to maneuver...as the sea is on its side...
any ship that is on opposite direction to sea direction would have to fight a lot , indeed it will slow down due to sea force....and can be pushed around.....
Same happens with stocks and markets...if market is supporting your stock..it will have a relatively easy ride to its intended direction ...others will face a hard time and could be pushed back...
so it is always better to know how the market is behaving for that day...and then pick stocks that have intention to go in that direction....
exception: a very big ship with load of power can steer its way inspite of the huge sea waves....same way a stock with huge catalyst...
As a beginner try to trade in the direction of the market.....
Also i feel that don't get married to a stock...get the ego out of the way...i have lost a lot because i got struck with a stock and ego came into picture..i would trade every turn assuming it to be the final swing low and would in turn get my ass handed over to me.....it would have been better if i would have dropped that stock after a 3 losses in a row....
all boils down to no plan = less confidence = churned out..
