Chapter 16

Ten Myths about Charting, Trading, and Candlesticks

In This Chapter

bullet Getting the facts on trading and candlestick misconceptions

bullet Discovering some trading tips

Throughout this book I reveal how charting techniques — especially candlestick charts — are a path to making money in the markets. But my views on the subject aren’t unanimous among those interested in the markets. Many folks are critical of technical analysis in general. Also, some say there’s no benefit in keeping an eye out for candlestick patterns. (I know, unthinkable!) Many of you who’ve attended business school have heard the arguments from professors (not professional investors or traders) that the markets are efficient and nothing can be done long term to outperform this efficiency. But rest assured that the reverse is true. I’ve worked with some very smart people who’ve done just what these professors say can’t be done, and they’ve done it well.

In this chapter, I dispel ten common myths and misconceptions about trading and candlestick charts to set your mind at ease and help keep you confident in your trading pursuits.

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