trendline breakout stock philosophy

Volume moves the market and price indicates what the investing public is willing to pay for a particular security. If a stock is over bought it will sell off eventually as profit taking sets in. if a stock is over sold it will, usually, rebound with upward momentum at some point as bargain hunters come in.

These reactions echo the simple laws of supply and demand. It doesn't have to be any more complicated than that. Yet we continue to make it a much more complex issue than necessary. We hang on too long to losers or fail to take profits due to greed. Investing is a business for those people that take it seriously and whom succeed at it.

Few people will become millionaire's at trading some may invest their way to wealth over many years. To those who are disciplined enough to monitor themselves they may have a chance at creating wealth in the greatest most liquid market on earth.

This website is not a trading system it is a compilation of several tools that work well repeatedly time and again. Learning to read charts in this effort is wise so that one knows the difference between a consolidation and a breakout. If one fails to identify these correctly you may get stuck in a trade that does not seem to get you anywhere fast.

Rather than exit a trade that was entered into incorrectly we often carry the trade for hours, days, weeks or months longer than we would like to. If we set stops on a trade we limit our losses. If we do not we may find ourselves holding onto a trade and losing our hard earned money.

It is much easier to re-enter a trade if we entered it incorrectly or to wait for the proper set-up in its chart. With today's online broker accounts it is relatively inexpensive to enter and exit a trade. It is almost always far more expensive to carry a trade we should have set a stop with.

The advent of the personal computer has made number crunching and formula devloping a relatively simple task. This process can assist the trader/investor in combing through large quantities of stocks or markets in minutes that would have been impossible to do 20 years ago.

There are hundreds of indicators that have been developed over the years by intelligent thoughtful market observers. Each one attempting to exploit a particular phenomenon that they have noticed that may give them an edge in the markets.

Investing or speculating has become a thinking man's game as computer programmer's look for the holy grail of investing success. Some systems are highly profitable with large draw downs normal before success is acheived. This does not fit with everyone's psychological make up. Some systems are very accurate yet only make small gains repeatedly with smaller draw down's more likely.

Acheiving consistant success is important when investing your money in the market. Success builds upon success. Hitting a home run each time you purchase a stock would be wonderful but that is rare. Remember most home run hitters strike out far more often than they hit home runs, why? Baseball batters know that they will have numerous chances at hitting the ball again. If an investor strikes out 5 times out of ten and does not limit his losses then it won't be long before he or she has no money.

Investing or speculating is not a game although it is analagous for some people. Remember in sports a professional athlete takes many swings at the ball in practice before he ever reaches the plate in a game. Yet many investors never trade on paper or learn charting techniques before investing their money. Investing and making money is no different than professional sports, you must practice the trade first and learn the fundamentals of the game before you play well.