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Written by Ben
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Monday, 17 March 2008 |
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Share prices are comparable to the movements of
the sea. In the sea, we have the tides, the waves and the ripples. In
stocks, we have the primary trend, the secondary trend and the minor
intraday trend. A long- term
investor is not concerned with the intraday movements. But a trader is
different. He tries to benefit from the minor moves. Intraday trends,
like the ripples of the sea, are extremely unreliable and hard to
follow. As a general rule of thumb, weekly charts are more reliable
than daily charts and daily charts are more reliable than hourly
charts. With modern
technology, we are now able to have half- hourly charts or even
quarter-hourly charts. These charts are created to encourage more
speculation activities and business for the broker firms. How many have
made money using these charts? I think for every successful man, there
may well be over a hundred failures. No
matter how good a system is, if you can’t win from it, quit using it. I
have yet to come across someone who can consistently make money out of
trading. If you think you can, think again. Good luck.
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