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Saturday, January 18, 2014

Charting patterns


Stock and currency market charts have much to teach about life, not just about money.  There is a big picture, and there are trends and anomalies, all three of which can help us as individuals.

Sometimes, I get caught up in the moment and make decisions that are only good for now.  Sometimes the decisions are bad, sometimes good.  Sometimes though, I don't get to make a decision about matters at all.  The forces in the bigger picture make those decisions, and I have to react to them.  I am not always in the right position to react positively to those forces, and I fail miserably.  However, most of the time I am and benefits result.

The beauty of charting is to see what was true a day ago, a month ago, a year, five years, or a decade ago. I can draw some conclusions about the way I trade.  I can change that pattern or pat myself on the back.  I can learn from those charted periods, or I can ignore them, knowing that each trade is unique to current conditions.  Maybe the period I am trading in is like the period in a previous trading period, but then again, it is mostly not.

Stocks and exchanges teach me that I can miss opportunities, that life moves on regardless of my response to it, that I can benefit if I am a good student of it, and that whether the movement is up or down, there is an opportunity to have good things happen.

I have known this from what wise people along the way have told me. But, charts display it so well that it is hard to forget their lessons.  Their images are in my mind's eye for just the right times.

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