please share your thought process when you are looking at charts

Discussion in 'Trading' started by mute9003, Oct 31, 2021.

  1. mute9003

    mute9003

    im at a roadblock and for whatever reason cant figure out which is most likely very simple things

    i look at charts and i keep entering trades at the wrong times
    when i go back and analyze my trades i can see the patterns i missed and the patterns that were forming become obvious that i entered and exited trade at not very ideal time

    but when im live trading i cant seem to catch the information about the chart that i need

    can you guys share your thought process when you are trading please?

    like for example you find a stock on the scanner you click on it to take a closer look for a potential trade
    whats your process when the chart is on the screen

    i feel like my process is incorrect which leads me to poor trades
     
    murray t turtle likes this.
  2. deaddog

    deaddog

    Keep in mind that my time frame is daily.
    It's hard to explain but this is my process
    Here is what I ask.
    What the price is doing right now?
    Where did it come from?
    Based on that, what do I expect it to do next.

    Is price being influenced by volume?
    What does price do on high volume days?
    What has price done in the past?
    Is there a tradeable pattern?
    Is there anything that makes this trade too risky?

    If by looking at the chart I think price may continue to rise I plan my trade.
    I calculate my stop. (A trendline or a swing low)
    I calculate position size.
    I plan my entry based on the price continuing to rise. (I want the price moving in my direction before I buy)
    When the market opens I execute the trade as per plan.
    I don't chase.
     
    shuraver, afiacpti, Handle123 and 2 others like this.
  3. maxinger

    maxinger

    cleanse your mind & neutralize all negative emotions first.
    be calm, & alert.

    As long as you have negative emotions ( fear, anxiety, anger,
    frustrated, afraid, extreme elation, distress ....)
    you will not be able to see what you are supposed to see,
    and you will see what is actually not there.

    Even if your trade plan is solid, it is useless unless
    you have the pre-requisite (neutral emotion ) in place.
     
    Last edited: Nov 1, 2021
    damnpenguins, timtrader and yc47ib like this.
  4. The most incorrect thing about your process is assuming that these are "simple things". There might be half a dozen people in this entire forum that can predict the way a stock will move 6 times out of 10 five times in a row - and then again, there might not. Anyone who could do it regularly would be a multimillionaire in fairly short order.

    But there are thousands of YouTube "trading gurus" who will tell you all about how trivially easy it is...
     
  5. mute9003

    mute9003

    thats why im asking to see where my process differs from others. so i can find a mistake
    im not looking to predict stock just to understand how to read charts better
     
  6. maxinger

    maxinger

    no one knows because you didn't provide all the vital information.

    Trading involves 3Ms (Mind, method, money management).
    You didn't take about the mind aspect and you are assuming it will take care of itself.
     
  7. Unless you've found some new use for it, "read(ing) charts better" means predicting stock movement.
     
  8. mute9003

    mute9003

    please take your vague answers somewhere else... if you have nothing useful to add here regarding the actual question
     
    qlai likes this.
  9. mute9003

    mute9003

    i asked pretty specific question
    nothing philosophical about it stop derailing the topic
     
  10. themickey

    themickey

    I was going to make a (helpful?) reply but changed my mind when I saw this post.
     
    #10     Nov 1, 2021