Wednesday, September 8, 2010

The Daily Note - Charts Anyone?

Charts are important to all traders and all traders have different views on the matter at hand for each second that the markets are open. After which charters start again to do their charting work for the next day. There are thousands of charts out there and a thousand more each minute of uptime on the web. They are available from just about every trader willing to post one.

The problem is, or perhaps it's not, that if everyone traded the same chart the same way, all the mistery and the money making in the markets would be a snap and frankly a total bore. Let's face it if we could all make money on the markets following charts, it should be a piece of cake. Which it's not. Thank goodness.

Charts can help you follow the stock it does not help you to make good judgements and mostly they look in the past with a few exceptions however they also can tell the future which some can spot but most cannot.

So then how do you use all that charting knowledge out there? There is only one use for it, and that is for education. If you don't have your own exploration, your own developed eye, then start learning because you can only see with your own eye. Copying will only give you another eye's view which confuses. Take the time to follow and learn charts and in my opinion, the best way to learn is by looking at what I call ©"Naked Charts". Once you see things "naked", the embellishments will only enhance the picture not take away from it.

Happy Trading, Living and Dancing

The Daily Pick - The Naked Chart

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