Thanks - yea 100% perfection is near impossible, always curve balls and unaccounted for things that you miss or just couldn't be foreseen, etc...
In short, it's all about the psychology - charts are the window to the psychology, but charts kind of also provide a self fulfilling prophecy.... Those who can use them properly and read them right look for signals to buy and sell - those signals only work because everyone reading the chart buys and sells at those signals which causes the price to react accordingly... If you see a buy signal, and everyone else does too, everyone buys and the buying raises the price making it seem as though that was the right call... Same for selling, and it comes down to one's ability to get ahead of the curve, and think, act a few steps ahead of everyone else...
Meanwhile getting too far ahead also means taking more risks.... Maybe you thought you saw something, but it didn't come to fruition... Etc... So there is a risk/ reward balance... Charts help you balance that, but again... To much risk, you might not only not get a reward, but lose money... Or you might make more money because your putting yourself out there earlier got you in on something before everyone else, etc... Play too conservatively and you reduce your reward, but also reduce the risk and increase chances of success, however small that might be...
For me is is about reduction of failure, increasing success, play the confirmations, maybe get eyes on something earlier, but don't buy or sell until you get confirmation that whatever is actually a worthy move... Yea, it reduces your winnings, but if you risk too much and always hand some back, that also reduces winnings... You'll find many small victories with less losses adds up and compounds over time faster than going back and forth between big wins and big losses, etc...
My every call isn't a buy/ sell signal either.... Sometimes just watch list to get eyes on possibilities...
Sometimes you think you see a pattern no one else sees, and it fails because though you saw it form (say low volume), no one else was watching it... No good if you play into it by yourself - hence get confirmation.... Wait for others to make the move and support/ resistance tests to pass, etc... Then buy...
Just my philosophies...
It's probably not just that easy - but if you began with $300, and traded 100% of your bank roll every time, taking 30% profits with each trade (Accounting for commission too), and compound profits into future trades... It takes making 1 successful trade without loses every 2 weeks roughly to turn $300 into 6 figures over a year.... Of course there'll be loses, and what not... Point is, trade for risk mitigation, aim for success regardless how small, go for quality set ups, scout your trades, take the 2 weeks to find the perfect set up you have confidence in, don't just force a trade, sometimes the trade you don't make is the perfect trade... Quality over quantity.... Even if you were only slightly successful.... So what if you only turn $300 into $10,000 the first year as opposed to $100,000+... Now start year 2 with $10,000... Or whatever... Hell, be happy with $10,000.... That's still a large gain to turn from $300... Don't get greedy, get your 30%, get out, etc... Don't ruin yourself trying to make more, etc... Even if you don't get 30%, all the little bit adds up fast... The longer you do this, the better you get too... And risking only $300??? That's not much at all...
The issue really becomes when you're trying to move larger amounts of money in and out of stocks... Becomes messier, and your entry and exit has more influence on the share price, etc... Because of this there can be a natural resistance at some point to the theory... But again - even if it only works a fraction of theory... You did good!!!
I preach risk mitigation and to do more with less.... I am a part time trader because 1.) I have a life, job, kid, wife, hectic lifestyle, etc. and 2.) Trading for quality over quantity means part time trader ultimately...
Anyways.... Those are my principles...
Just also be prepared to cut loses fast and survive to fight another day...
I never paid a dime to Timothy Sykes (well, I guess I did buy 1 book for $15), I don't subscribe to any of his services, etc... But he provides a lot of free content, etc... And his philosophy in my opinion is the best... And it is basically that which I built my above philosophy off of....
But charts really help make it work - Especially in the OTC, where 99% of companies are crap to begin with and everyone playing the OTC knows it and accepts it... What do you think they're using? Fundamentals of companies in a realm of 99% crap companies??? Or charts???
To each their own, not here to convert anyone one way or another - just my opinions and my methods... Especially in a world where 99% is crap and most moves are superficial... I personally wouldn't sit long in that realm, odds are just so stacked against you no matter what you think about it... It's a lotto, some win, most don't... That's why I trade the swings... Crap or not, there are swings... No knock on longs, this is just my philosophy... It is all about playing the odds, increasing odds of success... When you play in the pool of 99% crap, what are the odds saying about holding ANYTHING long? 99% not a good idea... Again, my philosophy and approach, not trying to convert anyone or knock on anyone else's thoughts or methods...
All about discipline.... Don't worry about what you leave on the table - just worry about leaving the table with profits and reduced loses...
Even small victories add up fast!
