Begin to Overcome your Fears!

Feb 25, 2007: 11:06 PM CST

I am excited about being a part of this new endeavor to help newer and novice traders – as well as some professionals – overcome fears, hesitations, and anxieties concerning trading. I hope this will be a long and rewarding journey for all of us as we seek to increase confidence, awareness, and profitability in the world of market speculation.

Here is a sample chart I have for us:

Although odds favor a retest of support here at the 20 period moving average (as well as the RSI reading of 50 – midpoint), it doesn’t take much to see that the MACD is diverging with price action and should be a ‘flashing light’ for us. Remember that odds favor continuation after a trend is established so it would be countertrend to enter a new short position at this level, but one also has to wonder how much further can the Dow (above) continue without even a slightly meaningful correction. As TraderMike pointed out, the Nasdaq market is ripe for a correction (probably at least back to the moving average) and so with conflicting signals, caution is warranted right now.

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Comments
  • Katherenaz35

    I once a forex trader and I can say that it is fun but also dangerous.  Trading sometimes consist of greater risk. It is purely the game of luck and how you predict things to happen. Anyway, the more you succeed on your prediction the more you love to take greater risk that will lead you to nothing.

    Katheren

    Blog: Pare baignoire

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