The Art of Stock Picking Part 2

So how do we read these charts?

Let me give you another example based upon the equity markets and observe how the wrong psyche can take some pretty harmless information and do a whole world of damage though misinterpretation in context to personal planing - 

Lets take a look at the stock symbol GLW trading on the big board NYSE.

Well, a few weeks back one of my favourite websites http://www.barchart.com

listed this as a great buy opportunity as follows - 

Well, looks pretty great, we got some momentum, we got some RSI,and looks very positive on all sides as a trade, in fact you can pretty much make up your mind as a trader that this stock is in an upward trend.

BUT - 2 weeks later the momentum is about to stall and the stock price about to slide from 18 dollars per share.

what goes up comes back down like gravity since time is not a hiatus but a fluidity of action. Prices do not stand still but oscillate in waves.

http://finance.yahoo.com/q;_ylt=A2oKmK_fTvdSaFUAcPGzRwx.;_ylu=X3oDMTByN2RnanRxBHNlYwNzcgRwb3MDMQRjb2xvA3NnMwR2dGlkAw--?s=glw


Again - GNMK touching the 14 dollar barrier and - 

its definitely back down to 12 dollars and maybe a little bit more. Well, that's the great thing about the gravity of trading in that most of your trading experiences can relate to the magnificent art of bungee jumping. If anything trading like in the 70's cannot be dull and unexciting ever again and certainly not for the faint hearted. A buy signal and a promotion really depends upon the reader for interpretation. This matrix of information loaded with technical supporting data can be a double edged sword.

 http://finance.yahoo.com/q;_ylt=A2oKmLROTvdS2xsAIFOzRwx.;_ylu=X3oDMTByN2RnanRxBHNlYwNzcgRwb3MDMQRjb2xvA3NnMwR2dGlkAw--?s=gnmk

Everything really depends upon your personal goals and information is freely available for all.  If you want to bank a sleeper, go buy and put it away for 3 years and then take a peek and be a Johnny Apple Seed.  Or if you want to surf the waves and be a leaper, it is your call.

The art of stock picking really depends upon the pair of eyes that gazes upon the landscape.

Do you invest/ or do you speculate?  Short term or Long?  Its really about your psyche to choose which way to interpret the chart.

And this is why many traders do get it wrong. because they cannot judge the information based upon the chart and stick to an investment or speculative plan and follow through.

Lets all remember the 5 P's -

Proper Planning Prevents Poor Performance.

Know thyself.