Every stock move is driven with one of two emotions, fear and greed. Indecision is the resting point between these two dominant emotions. When the most dominant group of competitors in a stock is being driven by greed, the stock will rise, this is commonly called the the Bull phase. When the most dominant group of players within a particular stock are experiencing the emotion of fear, the stock will move aggresively lower. When the dominant group is undecided, price will stabilize in a sideways consolidation. Technical analysis give us the power to be able to quickly asses what the actual professionals within any particular stock are doing. Price charts show us graphically if there is money flowing into the stock or out, is this stock under accumulation or distribution. They show human psychology at work and the repetitive cycles of fear and greed. A CEO can hold a conference and boldly issue inaccurate statements about a company, but the chart never lies. Our goal as traders is to always be on the right side of the market. When the big money is buying and greed is in control, you want to be a buyer. When the big money is selling and fear is the primary emotion,you want to be a seller. Studying a price chart will reveal what emotion is in control, at that time. Traders do nothing to influence the markets movement, It's your job to asses what power is in control and hop onto their coat tails.
Article Source: http://www.articlecontentprovider.com/articlesubmit
Every stock move is driven with one of two emotions, fear and greed. Indecision is the resting point between these two dominant emotions.
Dave Heckley has been investing for the past ten years, he has shown numerous folks his Stock Market System which has allowed him to leave his employment of 17 years and have the benefit of a life of independence with his wife and 3 kids. His website www.thestockmarketsecret.com goes in detail of his great system.
Please Rate this Article
5 out of 5 4 out of 5 3 out of 5 2 out of 5 1 out of 5
