Chart Pattern Recognition a Third Grader Could Do

Don't let the title fool you, chart pattern recognition is a difficult skill to learn, and even hard to master. Today's post comes to us from Amey from TheWildInvestor.com, and it's a good one! Please enjoy, comment, and enjoy the day.

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I like to keep things simple, and that definitely holds true in the world of stock trading, and since I am a pure technical analyst that makes the process even simpler. For the most part, I use screeners, such as the one inside MarketClub, to shift through possible stocks to play. Yeah, sure it works time from time, but even that is a little too much work for me. Luckily, I found a strategy that a third grader could even follow.

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Bollinger Bands 101 – How To Measure Volatility

Amey from The Wild Investor has been a rather frequent guest blogger (see previous posts) and for good reason...he knows what he's talking about! Over the weekend he and I were talking about technical indicators and I broke down and told him I know "less then nothing about Bollinger Bands". He laughed and broke them down for me, and afterwards I told him to write a guest blog so YOU could learn about them as well! Enjoy the article, feel free to comment with your insights, and visit The Wild Investor and SpeakStocks.com.

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One reason I prefer technical over fundamental analysis is that it is more visually appealing. By quickly glancing at a stock’s chart, I can tell whether I want to buy it, sell it, or what the price targets are.

I look at stock trading as an art, and like any craft we must constantly tweak and perfect it to achieve the most optimal outcome. As a die-hard user of technical analysis, I am always trying out different indicators, seeing which ones work for my trading strategy, and dropping the ones that do not. I typically like to keep my charts clean; otherwise, I get lost and lose focus.

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ABC's of Stock Trading

It's funny how many of these "lists" you come across, but the interesting thing is no matter how many lists you read through...you always pull something useful out of them! I believe this list is no different, but that's just me! Amey from TheWildInvestor.com and creator of SpeakStocks.com, has put together this list and would like to hear your feedback!

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This is not like any other ABC list you might have come across about trading stocks. There are no real terms here. The following is the ABC’s of successful stock trading.

A – Action, nothing happens until you DO SOMETHING.

B – Bear trap, don’t get sucked into it.

C – Cash, not making too much when you are holding cash.

D – Due diligence, don’t jump into a position blindly.

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