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In reading charts, stock and forex traders are watching for the best entry and exit points. You need to watch for patterns that can predict which way the trade is going to go so we can make money on our trades. New traders will stay in a trade after the markets have moved against them. This is caused by their lack of education and chasing losing trades. Without knowledge of how the markets work or a reason why they entered the trade. The herd mentality causes them to follow and keep adding to their positions instead of closing out the trade. you need to learn chart patterns and watch the volume that is coming into a trade to either buy or sell your position. If the chart is showing green candles and you are in a profit you should sell into the buyers. This is how the profitable traders make their money. They do not hold a trade to long looking for more profits. The losing trader believes that the buy and hold strategy is best and their market losses will eventually rebound. Smart traders look for positive chart patterns to make their trades. Another way for you to increase trading profits is have friend that you can trade with. You then can discuss different trading ideas. Sometimes 2 heads are better then one. Trading buddies can help expand their knowledge of trading and make more profitable trades. You can critique each other's ideas and revise your trading style accordingly. You can support each other and find ways to make good money in the stock and forex markets. It helps if traders look for support from experienced traders or you could purchase a forex newsletter if you trade the forex market. Finding this kind of information is very important to your trading success. Everything that can make you money in trading comes at a cost. No real profitable trader is going to give away his or her knowledge for free. Why should they? If someone is a complete novice with no experience in the forex or stock market, why would you give them the power over or say anything about your trades? This could cost you your trading capitol in the long run.Stock and Forex Chart Patterns Many support and resistance areas are known to all the big brokers and banks that trade the forex markets.They recognize these patterns in charts and trade them accordingly. Watching the gold and oil markets are something to watch also. The currency markets can be influenced by these to commodities. You should read numerous investment books and researching the internet for the best ways to use indicators, how to read chart patterns and technical analysis, forex newsletters are also great source to help you make educated trading decisions. If you have level II on your trading platform learn to read it. It will show where the market makers are sitting and where the support or resistance is.
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