Reading a stock chart is like reading a woman… that’s why so many men lose money trading stocks. Do you try to “analyze” a woman? If you do, it will surely get you in trouble! So why do you try to “analyze” a stock chart? If you want to know what a woman is going to do next, just ask her, she will tell you. Why not do the same with your stock chart. If you want to know what your stock is going to do next, just ask!
Communication is the key to relationships and stock trading. Learning to listen is the key. How do you listen to a stock chart? Your trading system is your communication mechanism. A good trading system or method will tell you when to buy, when to sell, when to remain neutral, and when to get out of your trade.
All successful traders use some sort of trading system or method. That’s why they are successful traders, they don’t try to guess what the market is going to do, they just let their trading method tell them when to trade. When your trading method gives you a buy signal, don’t hesitate, take it. The same thing goes for a sell signal. If you have an accurate trading method, don’t hesitate in taking the trade. Trusting your trading method is a must if you want to be a successful trader.
It is necessary to use a stop loss with your trading method to keep you out of trouble as well. Make sure you always protect yourself with a stop. Use a stop in your relationship too! What’s a “stop” in your relationship… STOP TALKING AND LISTEN!
by Joe T.