The chartist can either take a stock technical analysis course or learn by personal study . The argument used by the chartist is “look at others…they probably have more knowledge on the basics than I do.”The basic tenet of the chartist is “the trend goes on until it ends.” Many chartists try predicting a move in the trends. Chartists are famous for making spectacular profits one week and then big losses in another week . The chartist is always concerned with his ability to realize when a trend reversal or a congestion area is starting . So long as the trend continues the chartist is happy . If it looks like a trend is going to reverse, or there is a problem with a trend or the congestion area , the chartist becomes very unhappy .
Chartists are an interesting species. He really gets off on all the wiggle-waggles . Usually what happens to chartists is that they can’t see the forest because of all the trees. And, the chartist’s bag of tools is never over-filled until that final moment when the noise of the information and systems clogs the channel of clear cogitation .
He looks on unreceptively and blankly for hours on end at the chart , not realizing what the chart is saying . 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 : After the chartist gets out of their state of fogginess, they need to take time and write down the request from their chart . The chart is none other than the computer of facts and information , and as with a computer , they must tell computers what they want it to let them know, and by what criteria , and, they can only do this with a trading plan that is preprogrammed . The very first requirement a chartist has is that he has a plan for trading and that he gets from his chart the criteria that works with his plan . Going with the investment of a stock technical analysis course is a great idea .
Chartists that become a success are
* a) not as likely to take a position that is long
* b) before getting margin calls are more likely to close out their position.
* c) less likely to put up additional margin if they do receive a margin call
* d) more likely to trade in a larger number of commodities and to pyramid their profits .
A Chartist that is not successful
* a) tends to cut profits short and allow losses to run
* b) less likely to be short than long
* 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.
In general on chartists, there isn’t a track record , but a track record is certainly feasible on the performance of any particular chartist . Unless chartists allow track records to be done on them, it is impossible to take their claims seriously . The “head and shoulder” formation would be doubted by few . Of course, the continuation of one will be the reversal signal of another. Usually , if a chartist is vindicated his market decisions were more often than not, a result of luck . The trader is more painfully aware that technical analysis course mastery doesn’t mean their trading will be competent . Chartists that lose their money do this not always because their analysis was bad but because of the inability to transform their analysis into sound 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 they must control the desire to go on to something new from a sound method , especially when adversity is temporarily occurring .
