Former Wall Street trader: How to profit using technical analysis
From Greg Diamond, Editor, Ten Stock Trader:
I was 22.
I had started working at a hedge fund just a few weeks earlier.
My boss had trained under a trading legend. It was a huge opportunity to work with him. I was excited, but aware of the pressure. I wanted to learn as much as I could as quickly as possible.
And one piece of advice from him lead me down an entirely different path than I had first imagined… what would become the beginning of an obsession:
If you want to understand risk, if you want to understand trading, if you want to understand portfolio management… you can’t just focus on fundamentals. It’s not that fundamentals don’t matter. But to get really high returns and really exceptional trading results, you have to understand… how markets move and what markets move, and the psychology behind why markets do what they do.
You probably know there are two schools of thought when it comes to looking at the market… There’s fundamental analysis and technical analysis… And he wanted me to focus on technicals.
Understanding the behavior of markets and understanding history: This is the essence of technical analysis. This concept is lost on many investors who simply write it off. Primarily they simply don’t understand and they aren’t willing to put in the time and effort necessary.
Technical analysis is much more than trend lines and charts. It is understanding the past to profit in the future.
I’ll be honest – it took me a while to understand technical analysis, too. But time and time again I’ve witnessed the incredible power of understanding what is happening NOW – just as my old boss told me.
One of my goals at Ten Stock Trader is to educate subscribers on this incredible value.
I want you to see much more than the trend lines and patterns – understand that we are studying the behavior of market participants – we are learning from history.
There’s nothing wrong with wanting to know WHY a certain stock will move… But I am much more concerned with WHEN that stock will move and WHAT the price will do – how much will it go up or down?
And think about what REALLY matters in investing – WHEN you buy and WHEN you sell – the WHY is less important when it comes down to the goal of investing:
Did you make or lose money?
That’s all that matters.
Perhaps the greatest value technical analysis provides is that it is both a trading strategy AND a risk-management system wrapped into one.
Crux note: Right now, Greg is inviting investors of all ages and backgrounds to take part in beta testing his new trading service – Ten Stock Trader – at a substantial discount.
If you subscribe, Greg will send you confidential e-mails every week showing you as many as 10 trade setups, which could make you a fortune…
To see for yourself everything that Greg’s research has to offer, click here.