Below is a Jade Bronco diagram I like to use regularly. It is based on real numbers and shows a historical timeline of the market, demonstrating the direction of the market from early in the last century to today. Just imagine how much your portfolio would have grown over just the past few decades, even during the market’s “consolidation” periods.
As I speak with friends, family and potential students about what we do as a coaching company, I see that many people like to compare trading in the market to going to Las Vegas and putting all your money on red at the closest craps table. And the one thing that everyone admits to me is that they just don’t have the knowledge and skill set to make money in the market.
Look, success as a trader (and I am talking about a high success rate), is a skill set and it requires the development of a certain kind of muscle memory, if you will. What if I told you that trading can be as simple as putting a round peg in a round hole? And what if I told you that there is even a “hack” to becoming a highly successful trader in the market?
Well, let me introduce you to Candlestick Charting! Candlestick charts are thought to have originated in 18th century Japan and used in trading rice. And how were introduced to the Western world in the seventies by Steve Nison in his book Japanese Candlestick Charting Techniques.
This picture below shows a basic trading chart. You’ve probably seen them before. They show the daily movement of the price of a stock with longer-term views in “candlesticks.” Typically, red candles show a price drop and green ones indicate an increase.
Price patterns are nothing more than formations created by the changes in the price of a stock. And once you begin to learn the art of candlestick charting, patterns will begin to pop out at you. Learning to read these patterns is at the foundation of what we call “technical analysis.” Here is the “hack” that I mentioned above, and the key to becoming a highly successful trader in the market.
It’s called the Predictive Power of Price Patterns. It’s easy to remember and it’s the key to learning how to determine the right stocks to either invest in or trade. You can become an expert in technical analysis just by learning what a pattern is telling you about the direction it will go in the future, with a very high probability of success.
Price movement creates many patterns, but there are some specific ones that we trade on in our daily Jade Bronco trading group. The patterns in the diagram below indicate the strongest key patterns – trending, reversal breakouts and continuation patterns – that we are always on the hunt for.
Look, making money in the market is not as difficult as some news agencies and market pundits like to make it look. With more and more of us staying at home, working from home and more time on our hands, and with right now being one of the hottest markets in history…. Now is the time to learn how to become a highly successful investor.
But, please take my advice. Find a successful and seasoned coach to take you under their wing. Better yet, find that coach and become part of a community of highly successful traders who work daily together to find the best trades and invest together.
Remember, round peg in a round hole.
*The information provided on this website does not, and is not intended to, constitute investment advice; instead, all information, content, and materials available on this site are for general informational purposes only.