Rhythms in Nature
All of nature, all of the universe actually, is deeply embedded with rhythms. Think of the tides ebbing and flowing, in and out, in and out, day in and day out. The phases of the moon are so regular you can trace them back for centuries. Birds migrate, animals hibernate. Seasons come and seasons go with great regularity.
And in our own lives we experience the rhythms of getting up each morning, living our daily lives, going to bed each night, We see rhythms in families - children being born, children growing up, children leaving home. And even in childbirth itself, we see the distinct rhythms of the birthing process in the ebb and flow of labor pains, forcing that new life out into daylight.
Rhythms in Stock Trading
Now bring that awareness over into the world of day trading stocks. Of course there are rhythms in stocks. Once you bring that awareness foremost in your mind, you will begin to trade with a greater degree of confidence.
In the world of trading stocks (be it penny stocks or the blue chip behemoths) there are patterns and cycles. Rhythms, if you will. This is why charts are so important. This is where these rhythms can be seen, studied, analyzed and followed - in the charts. Charts will reveal distinct hidden patterns time after time after time. The patterns are also referred to as "trendlines." Believe me, people have been studying these patterns (technical analysis) for many generations. But it's still not a science.
The study of Rhythms - Technical Analysis
The study of rhythms and patterns of movements in stock trading is much like weather forecasting. The weatherman can get it pretty close, especially with the present technical tools and equipment at their disposal. But they also get it wrong at times. The same with technical analysis. It can be a guide to show what is likely to happen, but not a sure-fire guarantee.
Lack of space in this article prevents a detailed discussion on patterns, but this is it in a nutshell: Market prices move in zig-zag fashion. Peaks represent the price where more people sell than buy so market couldn't overcome this price. These prices are called resistance levels.
The troughs on the other hand represent the price where buying pressure was higher than selling. These troughs are called support levels. Understanding resistance levels and support levels is pretty much the basic ABCs of technical analysis.
Candlestick Charts
You may already be familiar with the candlestick method of charting. Japanese candlestick charting, a centuries-old technique used to forecast price behavior, can be used to increase your understanding of dozens of recurring market patterns. When the techniques of candlestick charting are combined with traditional technical approaches, it creates a powerful formula for the savvy investor.
Chart pattern recognition may seem strange and daunting at first. But the more charts you see, the more familiar you become with the patterns, the easier it will be for you to recognize movements that will mean profitable trades for you.
Channeling Patterns
For instance, channeling stocks are stocks that trade within a certain range between high and low price points for a period of time and may become predictable over time. Savvy traders seek out stocks that repeat this channeling pattern. As the stock goes up and down, traders buy and sell over and over again. What a way to make a living!
By the way, if you were not aware, it is possible to make money a falling stock. It's call shorting the stock. That's why when prices are tumbling, some smart trader out there is making a boatload of money.
Stock-Trading Robot named MARL
Again, if all this sounds somewhat daunting and, well, terrifying, please take heart. Technology has come to your rescue. While it is still very important for you to understand the basics of penny stock day trading, realize that a new stock trading robot named MARL, has arrived on the scene. MARL is now making the entire process of analyzing stock patterns and rhythms much, much simpler and easier.
This stock trading robot has the capacity to process 1,986,832 mathematical calculations per second. Because of the speed and simplicity, this robot has created over 100 millionaires since 2007. The stocks that MARL recommends earn an average profit of 105% within 3 hours of the market opening.
The good news is that the corporation managing the computer system, is offering a subscription-based model for the general public on a limited basis. This stock-trading robot may be your answer to learning how to make a living day trading penny stocks.
Being aware of and appreciating the trends, patterns and rhythms of stocks trading will go a long way in helping you to profit. Coupling your own personal knowledge with the incredible genius of the programmers who created MARL, will make all the difference in your day trading success.