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A technical analysis course will give you the knowledge That about anything can be justified with an old saying . There is always an equally plausible maxim that seems to justify actions that are diametrically opposed. It doesn’t matter what the event happens to be there are maxims around to describe it . Many traders select a maxim that will support their actions. It was Orin Thevault that stated that “selective perception” is what sociologists have called this . The trader is given some comfort with this alibi when he ends up having a loss or gets a profit that is smaller than he should have had.

Often traders that are successful scoff at maxims, that are general and without value and belong more in an explanation of random-walk theory than in a trading plan . He thinks that trading success requires more than just the judicious choice and attending of maxims .

“Nothing is so useless as a general maxim” .
– Thomas Babington
Lord – historiographer – 1859

Theoretically , if there was a maxim or rule that was always correct its validity would be eliminated because it would be followed so much . Human nature is such that any valid maxims are broken with monotonous regularity . So, if we do have a good maxim , it probably doesn’t mean a whole lot does it? More than likley it won’t really be paid attention to. People can’t remember everything . Perhaps Lord historiographer was really right. There are some of those maxims out there, which are applicable to good commodity trading . Some maxims are quite profound and should be remembered . You can make your own choice. Really , I recommend that you make you’re own collection of maxims that are good to you and test and question these maxims repeatedly.

ESSENTIAL MAXIMS TO KEEP IN MIND

The top approach that will enable you to maximize your results is playing a game that is favorable on a small scale , but yet a chance of success is still reasonably provided, is on a massive scale playing a game that is favorable with enough profits coming primeval in the game to refrain ruin . A game that is unfavorable can bring up profitable results if you rarely play and bet big. The only road that is sure to end in disaster is constantly playing a game that is unfavorable . You can learn more about this by taking a technical analysis course.

When a good sport dies, he’s broke.

Sure things don’t exist .

Traders sleep, markets don’t .

Dialog is appropriate if the mutual goal is enlightenment .

Success by happening usually turns into unfortunate by happening .

There are negative and positive aspects to winning .

The things a few can do can’t be accomplished by man.

Take a position where there is tiny resistance .

Sell off famine and purchase glut .

Purchase rumors – sell news .

A bull and bear can both make money – a hog can’t .

Don’t purchase at the bottom and always sell too primeval .

Purchase what will not go down in a bear market . Don’t purchase seomthing in a bull market that won’t go up .

Fatality has occurred to many healthy reactions.

Watch out for a trend when market view seems one sided .

There is wisdom in patience . Wait for the times when it seems you can get unusually high profit .

Trade infrequently unless you’re trading plan reasonably requires you to take positions often .

There is hardly a maxim that someone could not find fault with .

Put half your profits in a country deposit box .

Money is easier to make than it is to keep .

Sure, the strong and the fast don’t always end up winning the battle, but you should bet on that.

PESSIMIST MAXIMS

Something that can go wrong will

No matter how great your results are, there is a mortal who will imitation a superior one.

No matter what the result, there’s always someone hot to misinterpret it .

In any collection of data , the figure that looks correct obviously – is where a mistake will be .

There’s always a way to get a wrong number, even if it’s impossible .

Broad is the path that leadeth to destruction .

MAXIMS ON THE FUZZY SIDE

Let profits run and cut your lossings .

( this is like encouraging someone to be happy and stay healthy. )

On down days, only purchase . Only sell on days that are up.

Only going to the hard knock school will give you superior teaching than a technical analysis course.

It needs to be pointed out that as more people are participating in the market any work to chart and predict apiece action , the accumulative effect of those similar actions self-creates price fluctuations which might take all chart techniques and make them virtually useless.

As a chartist, you have lots of company . Thousands of others are charting all the same things you chart . When a massive move is predicted, you are liable to have a lot of the same orders as yours hitting the trading pits . In particular , stop loss orders being put at the very same points by many chartists, might create false penetrations of trend lines and other formations . Charting is inevitably to some extent an inexact science , even for those who have a technical analysis course under their belts .

It is a matter of choice about the scale your chart is on and whether to use closing or mid-price on it . When plotting movement of prices , either can be distorted . The latter is the one used more frequently, but as it comes at the end of the day it is associated with a lot of profit-taking etc . In addition, dynamic and unforeseeable events might play havoc with charts .

Charting is to some extent a lazy approach . The neat clinical look of a sheet of paper appeals to the many weaker brethren . Who have no penchant or time to try to dig deeper. Many like to believe that it’s a superior intent to look at all the variations . As technical analysis becomes more poplar and many start taking a technical analysis course, it can actually defeat the purpose it has , especially in a “thin” market setting.

It’s imperative to comprehend that is many traders are going with chart interpretations that are usual for a specific commodity, it will influence the price of that commodity in the direction chartists expect prices to move . Chart followers can establish their own theories right . Pure chartists never want to know all about the fundamentals, a trader that is wise will try to use both strategies for futures trading . There is no 100% reliable chart formation . One must seek confirmation from other indicators , like business cycle variations, changes in year to year production , and deviations in sums that are quantifiable, such as commodity prices, brought down to a single summary figure to show all the activities.

In many cases a commodity goes completely opposite of basic considerations because of technical factors and more. To become successful a chartist has to be ready for hard work and a lot of study and to develop more experience. This is an art form because of its skill and the finesse and experience of the technician . These are no doubt the essential ingredients of profitable trading . The technician must constantly check and re-check .

Another difficulty from charting is from the intent that even though all the facts of a commodity situation are known to the speculator these facts are also known by massive trading houses and other professionals .

However, truthfully some events can occur without prediction and can affect each trader. These occurrences might not have completely discounted prices , and chartists might be caught unawares and tiny can be done to keep a position in this situation fortified except being signal to catch these trend changes swiftly and to be swift to act . ( Such as all the oranges being lost to a hurricane ).

Technicians are well know for one week making massive profits and then lose massive time the next week . It’s just a fact that prices don’t change according to their performance in the past , but you can get an intent on a regular basis if you use P&L charting.

Most systems are indictable when it comes to advisability because there is no track record . All approaches have to be seen as unbeneficial until it has evidenced otherwise . To be perfectly candid , there is very tiny neutral explicit evidence acquirable to support chart analysis and it’s common rules . Many chartists tend to expect trends . This doesn’t work. One can't adopt or recognize a trend that does not exist . If you want to utilize a trend with the method following, one must move until the trend has demonstrated itself . Even then, the chartist needs to have a motto when it comes to trends which that until it stops, a trend continues. Again , he attempts figuring out the direction of a trend reversal as it happens. It is not possible. Only as it occurs can you become aware of a new trend that is evolving . Most technical systems can't expect a trend or trend reversal .

If unexpected moves happen , starting all over is what happens to mot technicians. After a series of discouraging losses , technical studies are often forsaken by traders since they don’t actually work. As it is a evenhandedly common phenomenon , it offers more proof that there are no short cuts to trading success and no substitutes for experience, knowledge and hard work .

All that is known is that there will be fluctuation of prices, but we don’t know how much they’ll fluctuate .

Protection is only acquirable in those congestion areas since they define the projection of any losses . Even in congestions prices will fluctuate. Any technical approach that attempts to examine congestion areas , and when a trading method evolves , will wage the broker and trader massive profits , since commodity prices happen to be in congestion , one form or another 85 % of the time .

The problem that both professionals and novices deal with is when they need to get in or out of a market. On this basis , a technical analysis course will help you realize that technical analysis has to a massive degree encompass price fluctuations in the short term (Another plug for P&L charting ).