Trading is a Jungle and Trading Setup Up



This must be the third time I will say I got all the more puzzled about stock trading; I was self studying the system of a successful stock trader. Again, the flaw of not having a mentor.

On reading the blog posts, I realized that reading it from the earlier post to the latest is NOT the way to go. One post may have a more detailed explanation later on in another blog post or that there is a difficult concept might be introduced early and the explanation is on a later post. I decided to approach it in another way through labels or tags.

ZF said there are two types of play
  • Momentum
    • Sell on Target And Trailing Stop
  • Bounce
    • Sell on Resistance
Technical Analysis versus Fundamental Analysis

Lifted from Investopedia
  • technical analysis
    • looks at the price movement of a security and uses this data to predict future price movements
    • begin their analysis with charts 
    • short term approach 
  • Fundamental analysis
    • instead looks at economic and financial factors that influence a business
    • start with a company’s financial statements 
    •  long-term approach to investing 
In a Twitter twit, ZF posted the classic trend following starter setup

  • 20/50/100 SMA
  • MACD
  • RSI 


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