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Thursday, March 27, 2008

Charting 101: Types of Charts

Challenge Accounts:

Investing Account Balance: $201.46

Stock / Futures Trading Balance: $684.39
Online Savings Balance: $12.07

Personal Trading Thoughts: Cash. No positions. Short - bearish outlook to sell rallies in stock market, but extremely wary as this market remains very volatile. Looking only for long positions in the Commodity Futures arena. Recent rallies in the stock market have been on very light and descending volume, which is a cause for concern. Expect lower market for the next few days.

Personal Investing Thoughts: Cash. Bearish outlook for the market. I should say that I'm prepared for a 35% drawdown from the highs. But who knows, as bottoms are a process, not an event.

Ok, the first thing to learn with charts? Is that there are different types of charts. Mountain charts. Line charts. Line Bar charts. Candlestick charts. I discuss the different types in this video:

Tomorrow, I'll discuss the just a few of the basic introductory tenants of technical chart analysis.

* * *

Investing Account Balance: $201.46
Stock / Futures Trading Balance: $684.39
Online Savings Balance: $12.07

Total Trades and Investments: 3
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $82.56
Average Loss: $82.56
Accuracy Rate: 33%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.02

This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research and tolerance for risk.

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