This book shows hundreds of stock charts from past history. In the stock market, stock price movements make similar moves at different times. The reader of this book has to study the charts over many months to get use to inevitable moves stocks are likely to make under certain conditions. For example, if any stock rises in price, from, say, 10.05 to 11.05 an inevitable move would be a decline in price, or it may not decline, it may trade in one of 5 directions: South, South-East, East, North-East and North or Up.
To take advantage of stock price movements, one has to play the role of a Linebacker in football. The linebacker has the most difficult job on the field which requires many attributes, one of the most important is to guess what is likely to occur in the next play, in the market it's the next day. If one were to wait till the end of the day for the closing price, it could be very well too late to take advantage of any price gain; because some moves are only good-for-the-day moves, usually in the up.
Another role one has to play is that of a golfing official on the field telling the crowd to be quite and wait for the ball to be hit. To take advantage of price movements, one has to wait for three things: a reversal set up, some type of down move and then the price confirmation. Now, one can guess as to the likely price move, but it only adds to the risk, it's up to you the trader as to when exactly to buy or sell-short.
Another role, lastly, I hope, is that of a baseball player getting a hit for only a single. Many times price movements do not carry as far as one hopes, e.g. 10.05 to 10.20 in lieu of 10.75.
Remember, the role of the linebacker is full time, from open to closing – watching the closing price, and in some cases of a real trade, one may only have five minutes to decide to sell or not, or buy cover a short.
I would also like to tell the reader something that you won't hear from anyone that stock trading affects your heart rate, it will.
