Trading From Main Street

[Toni Hansen]

Good point muel....

A lot of what I learned about the markets just came from spending hours upon hours studying price action and market patterns each and every day. I started with a list of about 50 stocks which were popular at the time and would try every night to "predict" the next day's action. With time patterns began to "jump out" and I began to learn how each stock reacted to different events and conditions. While I now look at many stocks every day some of the best traders I know still only trade a core group of stocks every day because the "know" the stocks... My reason for diversifying came from the fact that no matter what the stock, similar circumstances generally lead to similar responses. So, by taking what I learned from a few stocks I was able to apply it to the market as a whole and thus filter through more stocks for the best patterns. It definitely takes time (usually I spend about 3-4 hours a night scanning and narrowing down prospects - at least it's a fast inet connection!) but it's well worth it! =)

Toni