Bursa Efeks Indonesia Monthly Candlestick chart as at 23 December 2011.January:Bearish month,opening low for the year.
February:Dragonfly Doji
March:Bullish shortcovering till half body of January's candlestick.
April:Bullish Marubozo finding a high as it has broken January's top.
May:Small range movement,spinning at a high again.
June:Half yearly window dressing,you'll noticed that it pullback till part of April's candlestick and forming a dragonfly doji.
July:Bullish spike up opening high for the second half year.
August:Bearish hammer.
September:Open with a bearish unshaven top,bearish hammer.
October:End of 3rd quarter short covering breaking the resistance line.
November:Bearish spin at the year support line.
December:Another bullish spin but within previuos month range.Any pullback will be at the October candlestick body.
Meanwhile gold is heading into a bearish stage.
Charting is one of the most vital tools of trading be it in the stock markets,derivatives,commodities,currencies,metals,grains or crude oil as well as the latest weather derivatives to be introduced in Thailand .
Backing up with knowledge on underlying fundamentals will enhance your trading platform arsenals.
But the worst enemy of trading is your individual emotions that overrule your final judgement.
Most of the international day traders rely on charting to be their pilot,but for investors who are the conservative type scouting for a particular stocks is very easy as ABC but lack the skill of entry and exit.
The end result is holding the ball again like the musical chair game.
The world market is getting more sophisticated each day as cross border trading is now at the speed of lightning due to technological advancement with the latest telecommunication gadgets. Even while travelling or on backpacking trip,trading can still be done at the press of button on the laptop,iPad,mobile phone or even visit the guesthouse cybercafes.
The financial market never sleeps and if you have the necessary tools,a trading decision mindset at that particular instance of the day without any distraction,a good 'karma' that cancels emotion,well you have the discipline of trading.
Never be afraid to cut loss if decision turned awful as you still have another day.Taking a small loss is better than the Mother of all Losses.
While in the financial war zone,you need to act like 'Rambo' who is a mercenary fighter,no more treating yourself like a soldier waiting for instructions from your generals.
The financial market is artificially being manipulated and always trust your own decisions. Good luck in making money which makes the world go round and round.
