Day trading successfully means you are able to correctly predict direction of commodities, Stocks or Stock Options with consistent accuracy . To do this you need to understand Candlestick Psychology.
Many people talk about being able to control their own emotions as a key to their day trading success. Even more important is being able to see when the fear and greed of others is showing itself on the charts. To do this you need to understand candle sticks and what they are telling you about the emotions of other traders.
To trade effectively you must understand that you are not trading the market; you are trading people and their emotions.
One of the most significant goals of technical analysis is to identify changes in direction of price action. Candlesticks give visual insight into the market psychology.
The psychology behind the candlestick
Understanding the psychology behind the candlestick is far more important than the pattern itself because in reality, when you’re trading live at the right hand edge of the chart, the patterns are not so easy to see. They never quite look as picture perfect as they do in the textbooks.
However, Once You understand the patterns of the individual candlestick and the correlation of the candlestick with other enlightening indicators you will find yourself in profit with most of your trades.
The Successful traders say “let the market tell you what the market is going to do.” The utilization of Candlestick signals makes analyzing the direction of the market and trends relatively easy.
Watching the financial news stations will always provide a multitude of differing opinions. Using Japanese Candlestick signals will circumvent all that noise.
The #1 factor to understand Candlestick patterns is that they are formed by the collective input, of a specific instrument or entity, during a certain time period. No matter what you hear elsewhere, the Candlestick patterns tell you exactly what emotions the investor sentiment is showing.
Candlestick signals allows you to project trend reversals of the market with a relatively high degree of accuracy.
Recognizing Candlestick patterns is not rocket science. It is simple investment philosophies put into a visual graphic. The 400 years of actual investment results from Japanese rice traders have provided high probability signal results.
Understanding the psychology of how the signals are formed provides investors like you with better foresight into where to have trades placed. Having this capability to read sentiment in one’s mental arsenal allows the Candlestick investor to have their portfolio positioned so they can trade with momentum.
Candlestick Patterns Show Emotions
Candlestick patterns are the result of centuries of analyzing how human emotions affect a price trend. The signals, occurring over and over at specific points in a trend reversal, provide a statistically proven trading platform. If you understand how they are formed, you’ll understand what makes prices move.
The Candlestick signals illustrate the investor sentiment mostly defined as fear and greed.
Gain Advantage Over Other Traders
Understanding the Candlestick patterns gives you an extraordinarily strong foundation to day trade or swing trade,. A true investor requires a proven system or technique.
The candlestick signals have proven themselves to work over and over. The question is not whether they work, the question is whether somebody can learn how to use them correctly.
Learning a Systematic Approach to Candlesticks Promotes Your Profits
Understanding Emotions of the other traders in the room is a difference maker.
Being taught the mechanics of a successful trading program is fairly easy. Unfortunately, this education usually assumes investors will automatically implement the program based upon controlling their own emotions.
Emotions; Most investment training programs do not address this very important element of investing. Why? Because most traders want to hear how easy it is for them to make money , not to actually learn why.
Learning How To Trade Successfully
Learning how to trade successfully is a two-part process. First you need to Implement the correct steps from your trading program and second, controlling your emotions while the trade is proceeding.
Safe Day Trading spends as much time on both as needed to help you to become a successful trader.
Safe Day Trading Candlestick Psychology
Candlestick analysis, as taught by SafeDay Trading, is the proven investment technique that puts the probabilities of being in profitable trades in YOUR favor.
Without doubt, using a consistent, complete trading system is important.
Not every trade is going to work out as expected. There will be losses. Based upon the results that candlestick signals have produced over the past 400 years, when all aspects of candlestick signals are in alignment, the total results should be a strong positive return.
Learn how to use candlestick signals correctly.
Trading with proper money management, a proven system and controlled emotions produces high profits.
Candlestick analysis will help you eliminate emotional reactions. Human emotion is what tends to lose investors’ money… Learning the psychology of candlesticks converts emotions into profitable advantages.
No more wondering and hoping that your positions will make a profit. Candlestick analysis puts you in total control of your investment results. It identifies panic selling and exuberant buying, allowing you to extract huge profits from the markets.
To learn what each specific candlestick pattern means and how to trade it, simply visit SafeDayTrading.org today. And start profiting tomorrow. You can Join for FREE.!