Is technical analysis the best way to make money in the stock market. What kind of money can be managed with Technical Analysis?
It actually depend on you how well you apply technical analysis and how well you can interpret it. You should have enough knowledge on technical analysis.
Charts and Technical patterns interest you, it seems that you are drawn towards Technical Analysis. So if you are new to this field, here are few guidelines you can follow to build your base in Technical analysis.
Read Good Books
Start with good books on Technical Analysis like-
a. Reminiscences of a Stock Operator (By Edwin Lefevre)
b. Trading for a living (By Alexander Elder)
c. Technical Analysis of the Financial Markets (By John J Murphy)
d. Japanese Candlestick Charting Techniques (By Steve Nison)
e. Encyclopedia of Chart Patterns (By Thomas Bulkowski)
2. Virtual trading is important
Paper trading is a good way to track your performance and understanding on the subject. Moreover, you can use NSE Paathshala for virtual trading. This process is very important before entering into the actual trade in the market.
3. Market Psychology
Psychology plays a very important role in trading just like in a game of chess or in athletics. As a trader progresses from novice to expert, the understanding of both individual and crowd psychology becomes extremely relevant to become a successful trader apart from gaining the basic knowledge like chart patterns, risk management, market structure etc. With the market becoming extremely competitive day by day, traders are facing a lot of challenges which are sure to test their skills and limit of their psychologies.
4. Follow good traders
Start following good traders in the world. Read about them, their trading strategies, their books, etc and it will surely benefit you in your trading career in the long run. Some of the well-known names in the industry are as follow-
a. Paul Tudor Jones
b. Jack Swagger
c. Alexander Elder
d. Martin J Pring
e. John J Murph