Candlestick Charting For Dummies®

Charting Is for Short-Term Traders Only

Charts are wonderful for short-term trading. They depict the emotion behind what the market is doing and allow more rational traders to pick points to buy and sell. I can’t imagine trading over the short term without them. However, long-term charts are also very useful, despite what you may hear from naysayers.

Those of you with full-time jobs outside of trading probably don’t have the time to trade full time. If you still want to get involved with trading, one solution would be to trade by using longer holding periods. You simply need to work with longer time periods on your charts (use weekly instead of daily charts, for instance) and just plan on holding your trades for a bit longer.

One of the more successful technical traders is William O’Neil, the publisher of Investor’s Business Daily. O’Neil has a longer term charting methodology that he highlights in his newspaper and through his charting service. If you’re interested in longer term trading, seek more info on his strategies at www.investors.com.