Beginner Questions

Hi Shabbir


Thank you for the wonderful book. I am almost done reading once and have a few questions from reading your 3rd chapter on moving averages.

1. Can I, using your book, enter the market for a particular stock, at any given time just by reading the trend/chart?

2. Should I correspond my investment time frame to the type of chart to look at? For example, Should I look at 1day, 1mth or 3 mnth chart for 1day, 1 month or 3 month
investment for that stock? I am not able to understand, for example, if I am looking at a stock and targeting 5-10% returns in 15day-1 month, should I look at 1 month or
a 3 months chart? I assume I also need to watch the chart everyday for 15 days (or 1 month) to exit at the right time when both lines are converging. This question may look a little silly but I want to be pretty clear on from what point in time I should look at the chart to invest my money and which charts should I look at?

3. For day trading how should I see the charts? Because by the time I see a trend, we would be in closing hours. This is in reference to page 21 for Infosys day chart you have shown. I, of course, would not day trade at all.

4. Which are the best free charts you recommend that are not delayed? Is Moneycontrol advanced chart option useful?

5. Finally I am not able to understand the 'Breakout' section? How can one spot a breakout happening? Can you please help a little more here.

 

Thanks Shabbir. I will read the book a couple of times more.

1. For breakout, I did not understand how do you spot a breakout or breakdown happening in advance from Chapter-6 of the e-book. What are the leading indicators to see a breakout happening? Is it a spike in price and always (coupled with volume)? Or some other indicator.

Regards
Monil