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Barney :

When it all boils down a stock can only be doing one of two things -- either  it is  in a TREND or it is moving SIDEWAYS .

From the above there is then 3 basic trading methods

1: Trend Trading --- Trending

2: Breakout  ----- Sideways but can also be within a trend

3: Reversal   ----    Trending

The first is the easiest method to learn and can last for years , also contained within the tread will be other two methods .

Breakout Trading is harder and more concerned with patterns  ---- more suitable to short term 1 to 5 days .

Reversal  Trading is the hardest of all and requires experience ( CSR is a Reversal Trade )

You have really got to come back to what T/A is based on and  that is "Crowd Phycology " --- you are trying to FOLLOW the crowd (not lead them) .

This where the add ons like Gann , Elliott Waves etc fall down , they are trying to get out in front of the pack .

This style of thinking is more suitable to Punters --- they must keep their knowledge to themselves in order to obtain higher odds -- with T/A it is exactlly the opposite the more the crowd agrees , the better for you .

Best to pick a sector you like eg: Materials, Financials and have a watchlist of around a dozen stocks in this sector ---- learn about the sector --- what F/A  effect it ? --- learn the F/A of the selected stocks --- then go back and try and find how each of these stocks are traded --- some are quite simple and  respond to M/A others Trend Lines ---- get to understand each stock, if a stock for eg  : responds to Fiboncci numbers, well so be it , this is what this particular crowd is doing , so just follow 

The hand full of traders that I personly know have all been down the same track --- started SIMPLE, went on to make it complicated , then came back to a few KISS  methods , only then was a substanable profit possible .

What I'm about surgest was not possible when I started in the early 80s , but if I was kicking off now , I would :

1: Download Incedible Charts ( free software & data )

2: Same with Egoli

3: Open a $1000 account with IG-Markets ( $1 brokerage , no min balance )

 

Now treat this account as a fully fledged trading acount , with all the money managment principles both Guppy & Wilson surggest.

This means that basiclly:

1: Max Position Size of any one trade = 20% of Account

    = $200 max amount of CFD position (not margin)

2: Max Loss = 2% of account

    = Stop loss Max = $20

So if done correctlly you are actually only risking $20 (plus gaps etc)

This way you are putting " MONEY" at risk , which will bring out the flaws in your nature ---- these must be over come before you can procced .

The hardest thing most traders have to learn is to take a loss at the predetermined Stop ---- not easy when you are starting out

Start off Tread Trading --- Wilson lays it all out ---- and practice, practice practice .

Trading is really quite simple , don't get sucked in with all the add ons , though like most of us you probably will !

Best of Luck

Hope it goes well for you

Coyotte