15 Easy Steps to Mastering Technical Charts Quotes

“When you’re trading well, you have a better mental attitude. When you’re trading poorly, you start wishing and hoping. Instead of getting into trades you think will work, you end up getting into trades you hope will work.” — Randy McKay CANDLESTICKS ARE THE SINGLE MOST IMPORTANT TYPE OF CHARTS. They”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Don’t Rely on Tips no Matter What the Source.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Don’t sell a winning stock if it is crossing all resistances or if it continues to rise on strong volumes. The first sign to sell is when the volumes start to dry up and the stock stops rising, or the pace of rise drops.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Avoid “Hot” Stocks If it’s so hot, why is someone sharing the information? Someone big is probably trying to sell into the rise.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Don’t Try to Pick the Absolute Top and the Absolute Bottom Aim for the middle.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Stock prices have a memory. Resistance is the last major price area where the stock failed to continue climbing and began to fall back. Support”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Shut that 24-Hour TV Noise “Trading is a psychological game. Most people think that they’re playing against the market, but the market doesn’t care. You’re really playing against yourself. You have to stop trying to will things to happen in order to prove that you’re right. Listen only to what the market is telling you now. Forget”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“With this understanding, you trade when the charts show that the buyers are outweighing the sellers, or vice versa.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“You Don’t Need the Terminology Charts are very simple and don’t need “cups and handles”, “head and shoulders”, or any of the other fancy terminology that is used to explain them. I guess if you need to charge people and sound educated about charts, you need to use a lot of such terminology and give some intellectual sounding name to a pattern. I won’t put too much weight on these terms and patterns. Just keep in mind that the charts are showing you the collective behaviour of all those who are in the market at that time. With”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“When a chart is “infected”, or prices are manipulated to create an illusion of a direction, they turn extremely risky and can result in severe losses. Take a look at Chart 13.1. Trading on this kind of pattern is not just risky, it is plain dangerous.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“CHARTS MAY BE MANIPULATED TO CREATE PATTERNS to entice you and other traders to trade in the stock. Charts where the integrity of the promoter or the operator is questionable become suspect. When”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“The element of manipulation need not discourage anyone. Manipulators are giant traders, with deep pockets. The trained ear can detect the steady ‘chomp, chomp’, as they gobble up stocks, and their teeth marks are recognized in the fluctuations and the quantities of stock appearing on the tape. Little traders are at liberty to tiptoe wherever the food trail leads, but they must be careful that the giants do not turn quickly on them.” — Richard Wyckoff in The Day Trader’s Bible”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Position trading will suit you if you are inclined to follow fundamentals but have realized that even if a stock is fundamentally strong, it needs to get a “push” from institutional investors or investor interest of some kind. Since this kind of trading does not require constant monitoring, it also works for those who trade part time. The stocks depicted in Charts 12.10 and 12.11 have had no upward trend in the past eight months. In fact, they have dipped below their range. These are the kind of stocks you should not take a position trade in even if the stock runs up for a couple of days.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Position Trading Position trading works best for traders who can’t spend the whole day trading. Position trades are taken on the larger trend in the market or a stock, and may last many days or even several months. The critical aspect of position trading is to always keep a stop loss and adjust the stop loss as the stock moves. That takes care of any sudden jolts to the stock which may be of a significant nature.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Good swing traders make money because they quickly exit from 7 out of the 10 trades where they see losses rather than those who get it right 7 out of 10 times.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“You should try swing trading only if you have experience of trading for a couple of years. That’s because this method will require you to take frequent small losses till you finally get that one big swing where you make the big profit. If you don’t take quick, small losses and allow your losses to grow large, then even a large profit from a great swing trade”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Swing trades typically last 2 to 5 days, or a bit longer.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“I don’t recommend day trading for new traders. The pickings are small and the losses could be large. Your tendency to let the losses run and take profits quickly will prevail. You will not put stop losses, or if you see a loss you won’t close the position on the same day, which is the essence of day trading. These kinds of normal trading tendencies among new traders are what lead them into a loser’s game. So wait for a year or two till you have used longer forms of trading and are disciplined with stop losses, closing out losses, and letting profits run before attempting day trades.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“And if any consignment gets flooded or eaten by rodents, the losses are large.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Day trade is similar to running a kirana store. You sell a lot of products but margins are small. And”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Let’s take a few examples of when the rally is over for a stock and you need to close your position, no matter what the loss.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“For low risk trades, prices and volumes must rise consistently for at least two weeks. Avoid making trading decisions based on a single day’s price rise or a single week’s price rise. A short term price rise can be driven by a large lot of the stock being bought by institutional investors or by the non-availability of enough stock to make up for a large order.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Putting it on TV creates a self fulfilling prophecy where millions watching the recommendation buy the stock, giving a boost to its price which, in turn, confirms the analyst’s recommendation. Such”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Avoid trading stocks based on TV and other media recommendations. Most analysts have their own agenda in pushing a stock, especially if the stock is one with a low volume and low market capitalization. Putting”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Stock manipulators will also use their understanding of charts and trader psychology to “fake” supports and resistance in order to provide retail traders a confirmation that the stock is following a certain pattern. When they get enough people into the net, the stock’s prices will be manipulated to benefit the manipulators with large losses to unsuspecting traders. If you come across a stock where you find such manipulation, avoid it at all costs.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“The quickest way to make money is to jump on to low volume stocks which start to see multifold increase in volumes. Volumes may go up by as much as 20 to 100 times. This is a sign that an accumulation is in process. In low volume stocks, accumulations can take the stock up manifold in short intervals of time.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“If charts are of high integrity, i.e. large volumes, large market capitalisations, large number of investors with no large holders of stocks, you have to look for uptrends and downtrends to trade. And, you have to stick to supports and resistances. If the charts are of low integrity, trade them only when there is an accumulation in process. During periods of accumulation, gains will be exponential.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Worse still, the stock may head into a price freeze on a daily basis making it almost impossible to exit until it has significant losses.”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Make sure you keep very strict stop losses in such stocks because if the accumulation ends, it may be very difficult to find any buyers at all and the drop in the stock’s price on a daily basis may be very steep. Worse”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts

“Manipulation may not always be bad for traders. If there is a concerted effort to take the stock up, you can join the ride and see exponential gains. Make”
― Ashu Dutt, 15 Easy Steps to Mastering Technical Charts