Monday, September 18, 2006

Blog of the Week: Global Growth Investor

10 ways to keep your chart reading fresh

While on a short break last weekend, I picked up Did You Spot the Gorilla? in the hotel library. Yes, it’s a cheesy self-help book, but it did have some good tips on creating the right mindset to spot opportunities.

One of the points the book made was how the human brain shifts to autopilot when we repeat things over and over. “When the world becomes too familiar, your brain reverts to autopilot and stops thinking and noticing,” the book said. “This is when opportunities can be missed. Stimulate your mind and switch to manual.”

It got me thinking about things I repeat every day: going for a walk in the morning, checking email when I get into work, walking home from the station . . . and chart reading! Technical analysis lends itself to repetition. You download your data each day and plough through hundreds of charts. If you have a system you’re trying to stick to, there is little variation.

One thing I realised is that every day for years I’ve scanned candlestick charts using the same software on the same computer. Yet when I check stocks at work on the shared Bloomberg machine it is in OHLC form because that’s what everyone else looks at. I have realised that chart patterns often look clearer and I spot more opportunities on the Bloomberg.

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1 Comments:

Blogger David S.Y. Wong said...

Try candlestick charts at http://This1That1Whatever.com/stock-market/

2:18 PM  

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