How to use technical analysis stock market routine
to improve online stocks trading
Online stock trading tips
for technical stock market analysis
Technical analysis stock market routine is one tool which could make our life as stock trader/active investors much easier. I use technical analysis a lot, as you know.
Stock market could be analyzed also by fundamental analysis, but I think it is not useful for short term trading. One of my beliefs about stock market is that fundamental analysis is not very usable for everyday short term trading. Even you have fundamental opinion about economy or another issues that affect stock prices then stock market could react differently. It is not good to fight the market. It is much better to monitor situation when current stock market prices are not synchronized with your opinion and wait for change. And when technical stock market analysis starts to be in the same direction as your fundamental opinion, then you can start active trade your ideas. Stocks, stock market indexes and prices of other important markets like commodities, currencies or bonds can be analyzed by simple tools which help to do technical analysis.
Stock market charts
are easily readable using some form of technical analysis. As I mention several times on this site and my blog, the best way is to keep your technical analysis of stocks simple. Do not use
too many indicators,
just use basic concepts of technical analysis. Stock market charts are much easily readable this way.
How to do technical analysis
of stock market in few simple steps
If you want to be profitable stock trader or active stock investor you must understand that you are in
business of stock trading/active investing.
You run your "company" of electronic stock trading.And one of most profitable approach to the electronic stock trading is to prepare technical analysis stock market trading routine for most important tasks. It will be much easier to follow rules you have written in your electronic stock trading business plan then to think every day what to do now. Such technical analysis stock market trading routine should be routine for technical analysis of
stock market situation
in some good stock market analysis software or using some best online best online trading sites that provide a long term stock market history graph and also some short term stock market price chart for every stock market ticker that has to be analyzed.
What to analyze in stock analysis software ?
Here are my tips and recommendations based on my technique for technical analysis. Stock market analysis could be divided into these points. As my main stock trading exchanges are US exchanges I write it from this perspective.
General stock market analysis. What is
current situation
on US stock markets ? Are they bearish or bullish? This point is important to know
what type
of stock trading strategy you should use in current situation. You do not want to use long only, buy on dips, strategy during bear market.
Relative strength analysis of main sectors I use
ETF shares
for such technical analysis. Stocks - exchange traded funds - represents parts of total US stock markets. I check
all important sector ETF
shares I have in
list of my ETF.
Then I select some which present best
relative strength
or best relative weakness to US market indexes and put them into my watch list for further monitoring during a trading day or trading week.
International indexes situation I trade also international indexes in my portfolio. So I perform analysis of these indexes too. I monitor and analyze major European , Asian and Lat-Am indexes. The knowledge of situation on some international markets could help in decision what could happen on US stock market. There are times when local economic situation could affect mood of investors on US stock exchanges. These times were experienced during European debt crisis since 2010 or situation in Chinese economy in the same period.
Analysis of stock market tickers in my watch lists I use several watchlists that contain stock market tickers based on my method for stock picking and ETF picking. There are watchlists for bullish and bearish ETFs found by my
method for selection of best ETFs.
Another watchlist are created by
my best stock screeners
I use for scanning the stock market for best stock picks.
Create your own routine
and improve your online stock trading results
These examples could provide you ideas about how to create your own technical analysis stock market routine. Stock markets are huge and you as a trader or investor should make your hard work easier. Such list of routine tasks is good tool. And you could have one list for daily routine and one for weekly technical analysis stock market routine.
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