Stocks Charting

By Author: Anthony Green
Total Articles: 36
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We teach seminars about point and figure charting all over the country. At these seminars we teach the basics of point and figure charting to both stockbrokers and investors. It is during these seminars that we advocate P&F charting by hand because you learn more about the method, and you see exactly what takes place in the stocks you are charting.

We liken it to the pottery maker. You have probably seen pictures of one of these artisans, sitting at a wheel and using her hands to make a beautiful piece of pottery. If she moves her hands too much the pot is ruined, and she must begin a new. She does not just sit down and on the first time at the wheel come up with a masterpiece. It takes work, practice, and skill to produce these works of art.

Compare that to machine-made pots. These are mass-produced on an assembly line. Yes, they are all uniform and not as expensive. But then again, the handmade pots are one of a kind and combine the skill, the art, and the passion of the craftsman.

Certainly if you are new to the point and figure method, then charting by hand will help you learn the basics much faster. ...
... Take a handful of stocks and begin charting these by hand each day at the close of the stock market. Do not select one hundred or two hundred stocks to begin your experimentation. That�s too many. You may graduate to that many down the road, but do not start there.

It�s similar to being out of shape and deciding to work out and tone up. You do not go out the first day and run ten miles. You start slowly and gradually work your way up to the level you want. If you start too fast, you will end up miserable and in pain, and you�ll probably quit. The same can happen if you chart too many stocks. Start with twenty to thirty stocks.

Charting by hand will allow you to see reversals take place. It will let you see patterns develop and give you the opportunity to act quickly on those patterns. It will allow you to see if your stocks are rising along with the market or whether there is action contrary to what the market is doing. These contrary actions can often be clues to a change in the stock trend. So don�t be afraid to get your hands dirty and chart by hand.