The first thing you need to know is how to understand the market. There
are different approaches to this; mine is a marriage between technical
analysis and fundamental analysis. As a technical analyst, I rely heavily on
my charts and figures. It is also important that the companies you are
looking at make economic sense (for the bulls) or are really full of hot air
(for the bears).
Thus, you must look at the fundamentals of a company. I
like companies that make money, pay dividends, and have insider ownership
with good growth and a price-earnings (P/E) ratio that is relatively
low. Those are my rules and I rarely stray far from them. There will be a
lot of companies that qualify, and that is where technical analysis comes
into the picture. Why opt for an issue that has a bad chart pattern? This
analysis technique allows you to see visually where the company is and
where it might be going.
In the first part of this book I show you how to use some tools to aid
you in your research. As a commodities trader, charts tell you everything
you need to know about a commodity. Most commodities traders are
closet chartists, anyway.
Commodities tend to chart really well.
The remainder of this book teaches you some basics about options
and about hedging, and invites you to use your newfound knowledge in up
markets, down markets, trending markets, trading range markets, losing
positions, and winning positions. Hopefully, your imagination will be fed
enough for you to think about things not mentioned in this book.
Rapidshare
No comments:
Post a Comment