An Introduction to Basic Concepts & Indicators explain the basic introductory principles of the proprietary VSA (Volume Spread Analysis) methodology, which is built into the TradeGuider Software. The indicators displayed on the charts are not buy or sell signals, but attempt to show either strength or weakness entering the market. The signals are based on the laws of supply and demand, and show how these forces can be decoded and represented on a chart.
Introduction:
It is said that up to 90% of traders are on the losing side of the stock market. So perhaps many of these traders already have the perfect system to become very successful – all they need to do is trade in the opposite direction to what their gut feeling tells them! More sensibly, this Primer will be able to help you trade intuitively, but in a way a professional does.
Below is a brief series of questions – as an experiment, see if you can answer any of them:
- Why do we have bull markets?
- Why do we have bear markets?
- Why do markets sometimes trend strongly?
- Why do the markets sometimes run sideways?
- How can I profit from all of these movements?
If you can answer these questions with confidence you do not need to read this Primer. If on the other hand you cannot, don’t worry because you are not alone, and you will have the answers by the time you have reached the end of the Primer.
It is interesting to note that the army puts a great of effort into training their soldiers. This training is not only designed to keep the men fit and to maintain discipline, but is designed around drills and procedures learned by rote. Drills are practised time and time again until the correct response becomes automatic.
In times of extreme stress which is encountered in the haze of battle [trading in your case], the soldier is equipped to quickly execute a plan of evasive action, suppressing fear and excitement, ensuring a correct response to minimise or eradicate whatever threat the soldier is exposed to; cultivating this automatic and emotionless response to danger should be your mission too.
Contents:
- MARKET BASICS
- TRENDS & VOLUME SPREAD ANALYSIS
- THE ANATOMY OF BULL & BEAR MARKETS
- BECOMING A TRADER OR INVESTOR
- THE TRADEGUIDER SYSTEM