6 Step Process to Finding & Entering Stocks
If you are a new or beginning Retail Trader, there are many exciting new ways to find stocks quickly and easily. The goal needs to be to learn how to use your TC2000 charting software to maximize time and efforts, while generating the best list of stocks for potential trades for Swing Trading, Position Trading, or Day Trading. These are the most popular Trading Styles, and all begin by studying the stock chart.
See candlestick chart example below.
The Basics for Successful Stock Trading are:
1. Create a white stock chart background, with black and white candlesticks. Studies over many years have shown that black charts are much harder to read and interpret. In addition, those who use black charts have a 25-30% lower profitability, a higher number of losing trades, find trading frustrating, time-consuming, and hard to do.
A white chart makes reading the chart much easier, because that is how you learned to read in school. Textbooks in school do not have black paper and colored ink, they have white paper with black print. Your brain is hardwired to be highly proficient at reading a white background with black text. Those who do use the black backgrounds are using them because it is the “cool” or the hot new way to read charts.
Those who are serious about trading, use white chart backgrounds. If you are a new or beginner trader, this is going to make reading the chart far easier and simpler.
2. Use Stock Scans to find stocks to trade that fit YOUR criteria rather than using recommended stocks, or guru stock lists. Most of the time, recommended stocks get you very late into the trend. You want to find stocks that have high profit potential, rather than stocks the giant Buy Side Institutions are selling because the stock was recommended by a guru.
Martha Stokes CMT
TechniTrader technical analysis using a FreeStockCharts chart, courtesy of Worden Bros. and FreeStockCharts.com
Chartered Market Technician
Instructor & Developer of TechniTrader Stock & Option Courses
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