I don't know everything about stocks. So, I have to keep learning. But at the same time, there are numerous theories about the behaviour speculation of the stocks, many of them contradict each other. So, its not wise to blindly follow any of those. The right thing to do must be to learn and test.
This learn and test is a cyclical process. I start with a high rated book, and when I am done reading it, I come back to market to test the new knowledge I gained. I start with dummy trades, everytime, and move to actual money trades only if the dummy trades worked. I try not to overwrite techniques, instead I always try to let multiple theories work in parallel for me, as long as they don't contradict each other.
But on some days, the different techniques or the indicators do contradict each other. I get extra careful on those days, becsuse the stock might turn in either way, and the movement would be justified by like half of the indicators. So I try to make a buy or sell decision when a majority of the indicators are in sync and ask me to do the same thing.
But not always. If the graph pattern indicaters a strong rise or fall, it usually overrides all other indicators, for a brief period, from minutes to about an hour. I do take risks in such cases and put real money in such graphically justified trades. For intraday or very short term trading, The visual investor has been the most useful book for me, so far.
Btw, as I was saying, after I test the theory, successfully or unsuccessfully, I get back to the learning. This is a continuos process, and should sustain as long as I plan to stay in this business.
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