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Charting

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Charting is one the quickest ways to make a buy decision I use. It is the second research I use and the next to last before I buy. Simple charting is obvious buy when the stock is going up. See easy, not so. We are giong deep into the chart. Charting daily begins at 9:30 am when the market opens and cotinues thrughout the day. During daily charting I look for min to min changes in volume and price. Number one rule is do not panic. you cannot watch a chart all day and lose your mind everytime the stocks price goes down or up $1.00. A good stock can fluctuate quite a bit throughout the day. I generally have a stock price for the sell point before the day begins and wait it out. If the stock price falls, even if all day, I pack it up for the next day.

Now how to pick the buy piont of a stock using the chart. I start at the 3 months chart find out where the stock is now. We will use SIRF as this stock does it all.On December 27th it topped out at $ 26.06 and I had been watching for a pull back to buy the stock as in my mind the stock had it all and most importantly a very critical component for GPS to work better and all the top GPS company's are using that componant. So as I said I was waiting for a pull back on the 28th of Dec it droped to $24.46 followed by a rise on the 29th to $25.30 on the 31st it droped to $24.46 I still was looking for a drop to the 10 day Avg. which occurred on Jan 3rd but market conditions screamed a major pull back in the market so I held off untill the 10th the stock bounced back to $19.72 The following day the 11th the stock fell to $18.19 and I bought
( mistake )The next four days SIRF fell to $15.91 at that point the 10 and 15 day averages met and that is when I should have bought. I am not concerned that I wont make money on thnis stock as I see it going to $19 by Feb 1st or 6th. NOW WE have not finished out this play yet but you can see I jumped the gun on the 11th and should have waited untill the 10 & 5 day avges. crossed. The stock would have bottomed and started on its way up. That day I did not follow my rules but my thoughts and the rules in this market will make you money.

MORE on charting to come later on EnjoY the weekend TIMEISMONEY
http://moneycentral.msn.com/investor/charts/charting.asp?Symbol=SIRF&&ShowChtBt=Refresh=Chart&DateRangeForm=1&CP=0&PT=3&C9=0&ComparisonsF