Jump to content

Welcome to Tezi Mandee - Community Of Pakistani Investors & Traders
Register now to gain access to all of our features. Once registered and logged in, you will be able to create topics, post replies to existing threads, give reputation to your fellow members, get your own private messenger, post status updates, manage your profile and so much more. If you already have an account, login here - otherwise create an account for free today!

Welcome to Tezi Mandee - Community Of Pakistani Investors & Traders

Welcome to Tezi Mandee - Community Of Pakistani Investors & Traders, like most online communities you must register to view or post in our community, but don't worry this is a simple free process that requires minimal information for you to sign up. Be a part of Tezi Mandee - Community Of Pakistani Investors & Traders by signing in or creating an account.
  • Start new topics and reply to others
  • Get latest news on Karachi Stock Market
  • Subscribe to topics and forums to get automatic updates
  • Registered member get added in mailing list for mailing updates
  • Get your own profile and make new friends
  • Customize your experience here
  • Be the first to know the KSE latest announcements shared by our members
  • Registered members get access to Protected Forums and topics
  • Registration is free Create Account
  • If you are already a member just Sign in
To Create Account ( Click Here )
To Sign In ( Click Here )
 

Technical Analysis Secrets for Beating the Market

- - - - -

7 replies to this topic

#1
Ayub

    SECOND LIEUTENANT

  • Senior
  • 2,123 posts
  • Joined 29-June 10
  • Skin: Main Blue
  • Offline
    • Gender:Male
    • Country: Country Flag

    Current mood: Question
    Reputation: 846
    Technical Analysis Secrets for Beating the Market

    Technical analysis offers traders an edge to stay ahead in the market and improve your trading skills. So what are the top technical analysis ideas you need to know? Here are 15 technical analysis secrets to becoming a skilled technical analysis trader:

    •Get an edge — get some technical indicators. One technical indicator is better than none; just using the 200-day moving average on the Dow or S&P would have saved your bacon in all the recent bear market downturns. Use the confirmation principle — multiple indicators — to improve your odds. No indicator is a magic bullet, but don't demand so much confirmation from so many indicators that you hardly ever get a signal — analysis paralysis. Use indicators that work well together without duplicating the ruling concept.

    •Know what your indicators are measuring. Understand the crowd sentiment underlying your technical indicators. Take an empirical approach. See what you're looking at on the chart. Don't let wishful thinking skew your vision. Accept the evidence of your eyes. When you misinterpret a chart, go back and find what you missed.

    •Use multiple time frames to get the big picture. Look at weekly charts as well as daily and smaller time frame charts.

    •Trade with the trend. If the security is trending upward, buy it. When it stops trending upward, sell it. If you don't know what's going on, don't trade. Don't fall into the "value trap" — that a high-quality security will come back after a fall. It may, but you may have to live a long time to see it happen. While you're waiting, you're missing opportunities to build capital.

    •Tune out the prune-faced naysayers who say "market timing doesn't work." Maybe it doesn't work for them, but millions of people use technical analysis in one form or another today. Algorithmic trading and high-frequency trading would not dominate all major markets if exploitable chart patterns did not exist.

    •Treat trading as a business. You can beat the index averages. And you can make extraordinary profits in securities markets. But you have to strive for excellence in your analysis and in managing the trade. You are up against serious professionals who want to take your money; don't go into the ring with a hobbyist's mindset.

    •Trade for the right reason — to make money. If you're trading for entertainment or to prove some philosophical or political point, stop and choose a more appropriate activity to serve those goals.

    •Use fundamentals to select securities, not to trade them. Get as much fundamental information as makes you comfortable, but at the end of the day, use it to select securities, not to trade them.

    •Impose strict risk management controls. Technical indicators give you an advantage — the "trader's edge" — but no indicator is a crystal ball. Technical indicators are wrong — a lot — so you make up for imperfections in technical techniques by imposing strict risk-management controls. Don't lie to yourself about your track record. Examining losses may uncover a surprisingly simple way to avoid losses in the future. Examining gains may disclose some personal talent that you can build on.

    •Accept that you can't control the market but you can control yourself. Establish rules when you're unemotional for times when you are emotional to overcome bad decision making. Reduce trading after a big loss and a big gain alike. Pace your trading to the amount of money you have. Don't overtrade.

    •Never trade without a stop-loss order. Acknowledge that you will take losses, and control them ruthlessly to preserve capital. The biggest cause of losses isn't bad indicators; it's failure to admit your indicators are sometimes wrong. You can design a reasonable technical trading regime and still fail to make money if you don't control losses. If you can't tolerate any loss, you shouldn't trade at all.

    •Never trade without a profit target. Plan every trade. Establish your best-case profit as well as your worst-case loss. Trading and investing aren't gambling — they're a business, with probable outcomes that you can estimate. Take money off the table once in a while and put it somewhere safe. Capital allocated to trading is not "savings." It is always at some risk when it is actively placed in a market.

    •Chose expert advisors with great care. Do your own work first. Nobody else understands your risk appetite and tolerance for uncertainty the way you do. Everyone trades the same indicator on the same security a different way, and no one way is the right way. If you take guidance from gurus, figure out their strengths and weaknesses, and verify their work with your own. Don't take tips from anyone you have not pre-qualified. Don't give tips, either, unless you're quitting your day job to set up an advisory business.

    •Diversify. Trade several securities and types of securities to reduce the risk of a market catastrophe wiping you out.

    •Keep reading and exploring. The field of technical analysis is exploding in all directions. New combinations of indicators, new types of securities, and new trading technologies are being invented all the time. A lot of it is intimidating and frightening, but you never know when you might come across something that resonates with you — your own "Eureka!" moment.
    Quran 2:32. "Glory be to ALLAH, we have no knowledge except what You have taught us. Verily, it is You, the All-Knower, the All-Wise."


    #2
    Mansoor

      CAPTAIN

    • Root Admin
    • 26,065 posts
    • Joined 09-January 08
  • Skin: Main Blue
  • Offline
    • Gender:Male
    • Country: Country Flag

    Current mood: Spaced
    Reputation: 7,896

    View PostAyub, on 20 April 2013 - 02:07 PM, said:

    Technical Analysis Secrets for Beating the Market

    Technical analysis offers traders an edge to stay ahead in the market and improve your trading skills. So what are the top technical analysis ideas you need to know? Here are 15 technical analysis secrets to becoming a skilled technical analysis trader:

    •Get an edge — get some technical indicators. One technical indicator is better than none; just using the 200-day moving average on the Dow or S&P would have saved your bacon in all the recent bear market downturns. Use the confirmation principle — multiple indicators — to improve your odds. No indicator is a magic bullet, but don't demand so much confirmation from so many indicators that you hardly ever get a signal — analysis paralysis. Use indicators that work well together without duplicating the ruling concept.

    •Know what your indicators are measuring. Understand the crowd sentiment underlying your technical indicators. Take an empirical approach. See what you're looking at on the chart. Don't let wishful thinking skew your vision. Accept the evidence of your eyes. When you misinterpret a chart, go back and find what you missed.

    •Use multiple time frames to get the big picture. Look at weekly charts as well as daily and smaller time frame charts.

    •Trade with the trend. If the security is trending upward, buy it. When it stops trending upward, sell it. If you don't know what's going on, don't trade. Don't fall into the "value trap" — that a high-quality security will come back after a fall. It may, but you may have to live a long time to see it happen. While you're waiting, you're missing opportunities to build capital.

    •Tune out the prune-faced naysayers who say "market timing doesn't work." Maybe it doesn't work for them, but millions of people use technical analysis in one form or another today. Algorithmic trading and high-frequency trading would not dominate all major markets if exploitable chart patterns did not exist.

    •Treat trading as a business. You can beat the index averages. And you can make extraordinary profits in securities markets. But you have to strive for excellence in your analysis and in managing the trade. You are up against serious professionals who want to take your money; don't go into the ring with a hobbyist's mindset.

    •Trade for the right reason — to make money. If you're trading for entertainment or to prove some philosophical or political point, stop and choose a more appropriate activity to serve those goals.

    •Use fundamentals to select securities, not to trade them. Get as much fundamental information as makes you comfortable, but at the end of the day, use it to select securities, not to trade them.

    •Impose strict risk management controls. Technical indicators give you an advantage — the "trader's edge" — but no indicator is a crystal ball. Technical indicators are wrong — a lot — so you make up for imperfections in technical techniques by imposing strict risk-management controls. Don't lie to yourself about your track record. Examining losses may uncover a surprisingly simple way to avoid losses in the future. Examining gains may disclose some personal talent that you can build on.

    •Accept that you can't control the market but you can control yourself. Establish rules when you're unemotional for times when you are emotional to overcome bad decision making. Reduce trading after a big loss and a big gain alike. Pace your trading to the amount of money you have. Don't overtrade.

    •Never trade without a stop-loss order. Acknowledge that you will take losses, and control them ruthlessly to preserve capital. The biggest cause of losses isn't bad indicators; it's failure to admit your indicators are sometimes wrong. You can design a reasonable technical trading regime and still fail to make money if you don't control losses. If you can't tolerate any loss, you shouldn't trade at all.

    •Never trade without a profit target. Plan every trade. Establish your best-case profit as well as your worst-case loss. Trading and investing aren't gambling — they're a business, with probable outcomes that you can estimate. Take money off the table once in a while and put it somewhere safe. Capital allocated to trading is not "savings." It is always at some risk when it is actively placed in a market.

    •Chose expert advisors with great care. Do your own work first. Nobody else understands your risk appetite and tolerance for uncertainty the way you do. Everyone trades the same indicator on the same security a different way, and no one way is the right way. If you take guidance from gurus, figure out their strengths and weaknesses, and verify their work with your own. Don't take tips from anyone you have not pre-qualified. Don't give tips, either, unless you're quitting your day job to set up an advisory business.

    •Diversify. Trade several securities and types of securities to reduce the risk of a market catastrophe wiping you out.

    •Keep reading and exploring. The field of technical analysis is exploding in all directions. New combinations of indicators, new types of securities, and new trading technologies are being invented all the time. A lot of it is intimidating and frightening, but you never know when you might come across something that resonates with you — your own "Eureka!" moment.

    +1, Jazak Allah Ayub sb for the sharing this helpful info.... Please keep teaching us the Technicals, many of us wanted to learn this but not able to know how to start this and from where to get info.... so ur and others updates would be highly appreciated.
    **********


    Posted Image

    #3
    Ayub

      SECOND LIEUTENANT

    • Senior
    • 2,123 posts
    • Joined 29-June 10
  • Skin: Main Blue
  • Offline
    • Gender:Male
    • Country: Country Flag

    Current mood: Question
    Reputation: 846

    View PostMansoor1, on 20 April 2013 - 03:57 PM, said:

    +1, Jazak ALLAH Ayub sb for the sharing this helpful info.... Please keep teaching us the Technicals, many of us wanted to learn this but not able to know how to start this and from where to get info.... so ur and others updates would be highly appreciated.

    Those interested in learning technical analysis are requested to download and read this interesting and easily understandable book:

    Technical Analysis For Dummies

    http://www.4shared.c...8KACd6/file.htm
    Quran 2:32. "Glory be to ALLAH, we have no knowledge except what You have taught us. Verily, it is You, the All-Knower, the All-Wise."

    #4
    Mansoor

      CAPTAIN

    • Root Admin
    • 26,065 posts
    • Joined 09-January 08
  • Skin: Main Blue
  • Offline
    • Gender:Male
    • Country: Country Flag

    Current mood: Spaced
    Reputation: 7,896

    View PostAyub, on 22 April 2013 - 06:08 PM, said:

    Those interested in learning technical analysis are requested to download and read this interesting and easily understandable book:

    Technical Analysis For Dummies

    http://www.4shared.c...8KACd6/file.htm

    +1 Ayub sb.. Jazak Allah Ayub sb for the sharing... I just downloading it... and will start reading, also ur guidance must be needed for any queries/issues.
    **********


    Posted Image

    #5
    Ayub

      SECOND LIEUTENANT

    • Senior
    • 2,123 posts
    • Joined 29-June 10
  • Skin: Main Blue
  • Offline
    • Gender:Male
    • Country: Country Flag

    Current mood: Question
    Reputation: 846

    View PostMansoor1, on 22 April 2013 - 06:21 PM, said:

    +1 Ayub sb.. Jazak ALLAH Ayub sb for the sharing... I just downloading it... and will start reading, also ur guidance must be needed for any queries/issues.

    After finishing this book please read:

    Japanese Candle Stick Charting Technique by Steve Nison

    http://www.4shared.c...s_Charting.html
    Quran 2:32. "Glory be to ALLAH, we have no knowledge except what You have taught us. Verily, it is You, the All-Knower, the All-Wise."

    #6
    Mohammad Rizwan

      Technical Analyst

    • TEAM
    • 4,367 posts
    • Joined 26-December 12
  • Skin: Main Blue
  • Offline
    • Gender:Male
    • Country: Country Flag

    Current mood: Amazed
    Reputation: 1,562

    View PostAyub, on 23 April 2013 - 11:50 PM, said:

    After finishing this book please read:

    Japanese Candle Stick Charting Technique by Steve Nison

    http://www.4shared.c...s_Charting.html
    One of the excellent book:) I cant forget such book:) Poiner of Technical
    It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price






    Karachi Stock Exchange (KSE) Daily Reports


    Top Pakistani Sites        Haroof Top Sites    Promoted at Global Promote

    Indemnity, Disclaimer & Disclosure Notice:
    • By visiting TeziMandee.com you indicate your acceptance of our Forum Rules Disclaimer & Disclosure and indemnify TeziMandee.com, its associates and related parties of all claims howsoever resulting from the usage of the forum.
    Disclaimer: Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility. TeziMandee.com will not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information.
    Disclosure: The information in this forum is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.
    • All names or products mentioned are trademarks or registered trademarks of their respective owners.

    Copyright © 2006 - 2012, TeziMandee.com All Rights Reserved.
    eXTReMe Tracker