[alokkelkar]

Hi everybody,

This is Alok. I am from India. Want to trade, but do not know of trading lingo well. I think I should learn about trend analysis and reading charts... various patterns. But do not know how to start.

I hope, I will get some basics here.

Cheers,
Alok

[Tradewinds]

Originally Posted by alokkelkar »

Hi everybody,

This is Alok. I am from India. Want to trade, but do not know of trading lingo well. I think I should learn about trend analysis and reading charts... various patterns. But do not know how to start.

I hope, I will get some basics here.

Cheers,
Alok

The investment industry will state countless times that trading is risky, and you will need to sign statements acknowledging that you understand the risk. But you will never read what the failure rate is. Brokers will tell you it's risky, but they won't ever tell you what the failure rate is. Most traders believe that the failure rate is over 90% percent, and it will take you years to figure out what you are doing. So, that's the first thing you need to know, if you don't already.

Traders base their trade signals on various things:

• Price Alone - "Price is King!"
• Candlestick Patterns
• Moving Average Trend lines
• Volume
• Volume Profile
• Support and Resistance
• Level II Quotes and Order Flow
• Market Internals
• News Releases

You need to decide what you think is the best, or the best combination. I'm not going to state my preference, because everyone will tell you something different. And I'm not going to judge which is superior or not. I have my opinion, but I can't prove it.

You should get a general overall view of different trading methods before you spend a lot of time and money dedicated to something you might decide is worthless a year from now.

Some people will tell you that you can not predict price from price. That's partly true, it's partly not true.

Then there are issues of:

• Risk Management
• Money Management
• Order Management
• Leverage

If you run across a trading term that you don't know, you can look at a site like this:

Investopedia.com - Your Source For Investing Education

You can learn chart patterns from someone else, or you can look for your own chart patterns. You should have a way to back-test your chart patterns. Not that backtesting is the answer, but it will at least tell you if you are very, very wrong.