DaytradeTeam Profitzzz
Recaps of DaytradeTeam Trading Systems Performance
Tuesday, August 16, 2005
Technical Analysis
Technical Analysis means using past trading data to predict the future price movement of a stock. In other words, you look at charts to try to determine trading patterns, trends and indicators that have successfully predicted a stock or index movement in the past. DaytradeTeam uses Technical Analysis on every trade signal it generates.
In fact, most traders use technical analysis in one form or another. Looking at the chart to see if the stock has been moving up or down, checking the 200 day moving average, looking for stocks with large volume increases, etc. are all very popular among even among average, long-term investors. Being able to rely solely on technical analysis, however, is not only difficult for most traders, but also a seperating factor between successful and unsuccessful trading methods.
One of the first things you will learn from a successful trading system like our QQQQ Day Trading System is that you have to be comfortable relying on technical analysis only for both your trading signals and exit signals.
Do not listen to CNBC analysis, do not worry about the latest news, earnings reports, price/earnings ratios, etc.---the ONLY thing that matters is how the market reacts to these things, and that story is always told through technical analysis. How many times have you seen a stock move down in a big way after what appears to be a great earnings report? Or a stock that moves up two points everyday despite having a price earnings ratio in the hundreds? It happens all the time, and as the old saying goes, "if you trade the news, you lose". Technical analysis is not perfect, but for our trading dollars, it just cannot be beat.
In fact, most traders use technical analysis in one form or another. Looking at the chart to see if the stock has been moving up or down, checking the 200 day moving average, looking for stocks with large volume increases, etc. are all very popular among even among average, long-term investors. Being able to rely solely on technical analysis, however, is not only difficult for most traders, but also a seperating factor between successful and unsuccessful trading methods.
One of the first things you will learn from a successful trading system like our QQQQ Day Trading System is that you have to be comfortable relying on technical analysis only for both your trading signals and exit signals.
Do not listen to CNBC analysis, do not worry about the latest news, earnings reports, price/earnings ratios, etc.---the ONLY thing that matters is how the market reacts to these things, and that story is always told through technical analysis. How many times have you seen a stock move down in a big way after what appears to be a great earnings report? Or a stock that moves up two points everyday despite having a price earnings ratio in the hundreds? It happens all the time, and as the old saying goes, "if you trade the news, you lose". Technical analysis is not perfect, but for our trading dollars, it just cannot be beat.
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