Put Your Faith Into Charts

In my opinion, those who never trust chart doesn't make a penny out of it. You can read reports, you can listen to advices, you can have "insider" news, you may have a lot of stories to support you either to buy it or sell it...but guess what, non of them can compete with charts. Charts record every real market actions sincerely where the rest are just stories.

If one can't make money by reading charts, is not because chart is useless but one does't really know how to use it. It may be some of it, part of it but not full of it. Most of the indicators will give you conflict signals if put all of them in one chart, What I found through long time experiences are:

1. Most of divergence signal don't work very well.
2. Breakout often fails.
3. Moving Averages don't work very well in sideway market.
4. Hammer is very good on reversal point.
5. T.A doesn't work very well in cheap stocks.
6. Contra won't make you money in long run.
7. Money Management is the key to success.