Stock Trading 101

Since my last couple stock picks have been less than stellar....*cough* DNAP *cough*....I've decided to give up picking stocks based on fundamentals (or potential) alone & enter the exciting world of Technical Analysis.

In hanging out at my favorite geeky investment site, I came across a board titled Stock Chart School And Chart Plays. I found the folks there to be very informative and for once, not seeming like they're trying to pump up the latest stock. Don't get me wrong. Folks do give recommendations and pump up what they believe will take off. However, unlike the "to da moooon (heard that one a lot on DNAP)" & "it's hitting the sky" comments you see on certain boards without the person saying it having one iota of proof of such a thing happening, the ones hyping a stock actually backs it up with charts that show candlestick patterns, moving averages, support & resistance prices, the whole nine yards.

I'm learning so much. I even made a tiny bit of money in a stock. Basically $150 but considering I only put a $1000 in the stock, a 15% gain isn't too bad (for me). It started trending downwards so I got out while I was ahead. Besides I have more than enough losses to cover it.

I would love to eventually just have my full-time job be trading in and out of stocks. I would be a glorified daytrader. I would need to have enough of a financial buffer (I think $300,000 should be sufficient...*LOL*, though I suppose a little less is fine) to live within my means and be able to pay for the mortgage, all my insurance, etc., while working to amass even more of a fortune. I definitely want to learn all I can to get to that next level.

I realize too that TA alone won't help me pick winners. The key is to take advantage of TA and some fundamentals (especially when news is released) to get that one-two punch.