A chartist can decide to go with a technical analysis course or learn by personal study . Many a chartist goes with the idea “follow the other guy…he may know more than I do about the basics.” The tenet followed by the chartists is “the trend goes on until it ends.” Many chartists try predicting a move in the trends. Chartists are well known for making huge profits in a week and then big losses in another week . Chartists always worry about their aptitude to realize when a trend reversal or a congestion area is starting . A chartist is happy as long as trends continue on. In figuring out whether a trend is going to reverse , or there is a problem with a trend or the congestion area , the chartist becomes very unhappy .
The chartist is quite a species . He really gets off on all the wiggle-waggles . What usually happens to the chartist is that they can’t see the forest because of all the trees. And they never overfill their tool bag until clear thinking is clouded by too much information .
He continues to stare blankly for hours on end at the chart , without realizing what the chart has to say. The major problem is that they try to figure out what prices are doing from the charts , instead of telling his requirements to the charts.
A suggestion to use: When the chartist evolves into the fog-like state , they need to take time and write down the request from their chart . A chart is nothing more than information and facts on computer , and as with a computer , you have to let it know what you want the computer to tell you , and by what criteria , and, this can only be done by a preprogrammed trading plan . The first prerequisite of the chartist is that he have a trading plan and extrapolates from the chart a criteria which is palatable to his plan . Going with the investment of a technical analysis course is sound advice .
Chartists that are successful are
* a) less likely to take long positions
* b) are quite likely before receiving margin calls to close out a position .
* c) if they get a margin call are not as likely to put up another margin
* d) tend to trade in various commodities and pyramid profits.
A Chartist that is not successful
* a) tends to cut profits short and allow losses to run
* b) more likely to be long than to be short
* c) tends to purchase on days that prices drop and sell on days prices go up . Price level traders is what this action shows these chartists to be.
There is no track record possible on chart readers in general , but a track record is certainly feasible on the performance of any particular chartist . Until chart readers allow themselves to be subject to some type of track record , you can’t take the claims they make seriously. The “head and shoulder” formation would be doubted by few . However , the reversal signal of one will flag another to go on . More often than not , if a chartist is justified usually the decisions he made in the market were merely luck . The trader is more painfully aware that technical analysis course competence does not insure competent trading . Those who end up losing don’t always lose because their analysis was off but instead because they couldn’t turn it into good practice . In order to bridge the gap that is between analysis and taking action means getting over the threat of fear, greed, and hope . May I suggest that it means controlling impatience and the desire to stray away from a sound method to something new , especially during time of temporary adversity .
