Leonardo Da Vinci once said that simplicity is the ultimate sophistication. Let’s take a moment to ponder that. This applies to research analysis as well. When you hear people talking about some sophisticated trading system or some flashy indicators or some complex wave projections, think again. It is more likely to be smoke and mirrors. All these tell you nothing new if you know how to read the bare charts. It’s as simple as that. Simple, and yet sophisticated. Looking back at my last few stock picks, I found that it is possible to read and understand what is happening on the charts. This makes it possible to pinpoint the low risk entry points, as seen in some of my previous posts.

https://synapsetrading.com/2011/08/dbs-are-the-banks-leading-the-decline/
https://synapsetrading.com/2011/09/noble-group-evening-star-signals-turn-to-the-downside/

Compare that with indicators. If you see a green arrow, do you know why it is a buy? Maybe it worked the past 3 times, but will it work this time? Maybe. Or maybe not. You won’t know. In fact, you won’t have any idea why there is a green arrow. You won’t know what is happening in the market. You won’t know what the smart money is doing. That is why chart-reading is an important skill everyone should master. Banks, funds and proprietary trading firms use it as their main tool. Maybe you should consider it too.

ALL YOU NEED TO KNOW ABOUT TRADING!

Hi, Spencer here! 😀

After making my first million at 28, and trading & teaching across 60+ countries, I have consolidated my knowledge and experience to create the most comprehensive & practical guides for profitable trading, compiled from thousands of books, websites, courses, and interviews with professionals.

As a former professional trader in private equity and proprietary funds, I have over 15 years of market experience, and have been featured on more than 20 occasions in the media.
0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply