Tags: Hyman | charts | love | gurus

Why I Love Charts

By    |   Monday, 24 Sep 2012 07:40 AM

Those of you who have followed my articles for any length of time know that I love charts (aka technical analysis). Why?

Before I had knowledge of charting, I had to just turn on the TV and listen to gurus. But the only problem was, during any particular day, one would say to short the asset and another equally knowledgeable guru would say to buy the asset. Which one of them was right? Before charting, I didn’t have a way of knowing.

Back then, I’d also look to analysts to see what they were recommending. However, usually they were finally putting out a sell rating when an asset was at multi-year lows and putting out a buy rating after the asset had already gone up by 50 to 100 percent or more off of its lows. So, that wasn’t going to work out too well either.

Editor's Note: Join the 3.5% of Americans who are truly wealthy and financially secure.

As it turned out, I later learned that when the big brokers that kept inventory of stock “in house” wanted to dump their stocks, they’d have their analysts put out a buy rating. They’d sell as the “dumb money” was buying it up since they put their faith in the analysts.

The same would be true when these “big boys” wanted to load up on a stock “in house.” They’d have analysts put out a sell recommendation on it and people would dump their shares while the institutions would begin snatching it up.

Charting changed all of that for me. Finally, I had a way to objectively analyze trends. No longer did I have to be held hostage to the multitude of opinions swirling around out there. I could finally see for myself if an asset (stock, currency, commodity, etc.) was going up or down or in the process of a trend change.

It was a steady and consistent form of analysis that was very quantifiable.

Editor's Note: Join the 3.5% of Americans who are truly wealthy and financially secure.

Now later on, I learned much more, which allowed me to incorporate sentiment and fundamental analysis into the mix for even better analysis. That’s what I use in the Ultimate Wealth Report newsletter that I write. But it all started with learning about charts and how to read them using technical indicators and trend lines, etc. Ever since then it’s put me on a path that has separated me out from the pack. It gave me an edge that others didn’t have.

So, learn how to read charts. You’ll find that you’ll get into the profit much sooner on your investments once you learn how to use this valuable tool.

Don’t know where to start? Come follow me in the Ultimate Wealth Report. Each week, I release a video where I show the charts of our stock positions. I go over what I see on the charts and what it means. That in and of itself is a great education. Click here to find out more about my Ultimate Wealth Report newsletter.

About the Author: Sean Hyman
Sean Hyman is a member of the Moneynews Financial Brain Trust. Click Here to read more of his articles. He is also the editor of Ultimate Wealth Report. Discover more by Clicking Here Now.


© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
SeanHyman
Those of you who have followed my articles for any length of time know that I love charts (aka technical analysis). Why? Before I had knowledge of charting, I had to just turn on the TV and listen to gurus.
Hyman,charts,love,gurus
552
2012-40-24
Monday, 24 Sep 2012 07:40 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved