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#615 - How Long Should You Spend Analyzing Stock Charts?: Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “How long should you spend analyzing stock charts?” I think there’s actually two parts to this question....

#615 - How Long Should You Spend Analyzing Stock Charts?: Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “How long should you spend analyzing stock charts?” I think there’s actually two parts to this question....

A partire dalThe "Daily Call" From Option Alpha


#615 - How Long Should You Spend Analyzing Stock Charts?: Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “How long should you spend analyzing stock charts?” I think there’s actually two parts to this question....

A partire dalThe "Daily Call" From Option Alpha

valutazioni:
Lunghezza:
4 minuti
Pubblicato:
May 29, 2019
Formato:
Episodio podcast

Descrizione

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “How long should you spend analyzing stock charts?” I think there’s actually two parts to this question. There’s the first part which is – “How long do you spend analyzing a stock chart before you make a particular trade?” And in that case, I don’t think you spend too much time. Ultimately, stock charts are there as an engagement tool and I like and use stock charts as an engagement tool because they give us an idea of where the stock has been in the future and what the current market situation is, how fast is the stock moving or not relative to the past. But stock charts are still just purely an engagement tool, a tool that gives us perspective on what has happened on the underlying security. In my opinion, I think you can still make trades without using a stock chart. We’ve gone over this before in the weekly podcast many, many years ago where we said eventually, there’s going to come a point where stock charts potentially become obsolete for many traders because you don’t need a stock chart to make a decision. Stock charts are great for engagement, they’re great for looking at a couple different technicals, depending on which ones you use and ultimately, as an options trader, you don’t need to use the stock chart. Everything that you need is in the options pricing table, using the probabilities and the Deltas and the underlying stock. Now, that being said, I think the other part of this question is – “How long should you spend analyzing stock charts in your career?” And I think the analysis of charts and markets I think is really important for again, perspective and just understanding how fast things might move in the future. I think a lot of people nowadays, especially in the last couple of years, have not been through the 2007s and the 2008s of this world or the oil crashes or the gold crashes or any of the other major market events that have happened since the last recession. And so, they haven’t really experienced very fast moving markets. They haven’t experienced insane volume and volatility. And so, by going back and looking historically, day by day, how things are moving and how quickly things could change, I think again, it gives you a level of perspective that is going to be beneficial to you in the future. Markets do not repeat themselves, but they do rhyme as people say and we do see the same types of moves over and over again in many different sectors and industries and different underlying commodities, Forex, utilities. I mean, we see it over and over again, very similar moves, but it takes a long time to get used to watching and looking at charts and seeing what’s normal or what’s abnormal and getting comfortable with all those different nuances. In my opinion, I think it’s a lifelong journey to watch and study the financial markets. That’s personally why I love it, is because it’s constantly changing, it’s constantly evolving. It’s really a never-ending process which is really cool in my opinion. Hopefully this helps out. As always, if you have any questions, let me know and until next time, happy trading.
Pubblicato:
May 29, 2019
Formato:
Episodio podcast