How To Make Money Trading With Charts by  Ashwani Gujral, Prasanna Khemariya

This shows how you too can make money in any type of market by correctly identifying the market’s mood from
the various typical patterns that are formed on charts — and by using appropriate trading methods for each pattern:

• How to make big profits by identifying a trend and trading with it
• How to make mega-profits by identifying impending trend reversals and catching big moves in the opposite direction
• How you can reap windfall profits by identifying and trading breakouts from continuation price patterns on charts
• How to use volume to confirm price action
• How to use momentum indicators in conjunction with charts to finesse profitable entries and exits
• How to improve your trading success rate and protect your capital using proven methods of money management
• How charts can help you identify hot sectors and stocks to trade rading rules for different chart patterns

The bull run was not all smooth sailing, however. India witnessed some of the sharpest and deepest falls in between when most individual investors lost money. Then, too, the fall of January 2008 was a secular one in the sense that it hit a majority of market participants. All categories of players, whether individuals with small pockets, or the deep-pocketed, lost huge amounts of money largely as a result of overtrading in future contracts. Trading in the futures market is a zero sum game where one person’s loss is another’s profit. Only a minority of traders wins in the end; the majority lose money. The losses not only drain you financially, they inflict significant emotional harm as well.

Rises and falls are intrinsic to the market and they teach us lessons that are, alas, promptly ignored no sooner the next bull is espied in the distance. Investors happily forget that every party must come to an end and no rise in the market can forever defy the law of gravity. Are there lessons to be learnt? Can we avoid losses, overtrading, irrational exuberance and excesses? Can technical analysis, charting and chart reading give us a forewarning of impending reversals of trends? Can sudden and sharp falls be anticipated so that market players can make a safe exit, or at least jettison the excesses and prevent both needless pain and protect their profit and capital? The answer to all these questions is a resounding yes.