Anthony Speciale Stock Market Analyst

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How to Approach the Market with a Technical Eye

Happy Friday everyone! I’m Anthony Speciale, and welcome to A Better Way to Wealth!

In yesterday’s send, we discussed how I take a fundamental approach to the market.

Today, I’d like to talk about the technical approach because these two approaches are different.

Remember, the end may be the same, but there are two different ways for us to reach our goal of passive income for massive gain.

It’s that second route to our end goal that I’d like to talk about today.

The Technical Approach

First off, the technical approach to trading is going to be a little more hands-on.

Beyond going through financial statements and things of that nature, working with the chart is something I love to do.

I’ve also been told that it’s something I excel in doing!

Through my career playing the markets, I’ve been able to prove a methodology of doing it.

It consists of taking a simple chart with very few indicators and dialing it out.

We would start by looking at a monthly timeframe and later coming into a weekly and daily timeframe.

By doing this, you can draw yourself into an idea of where that chart has been and where it’s going next.

Now, some of you may be thinking I’ve gone crazy! Believe me, I haven’t!

With all the programs out there that want to sell you an indicator for this and that, it can often be overwhelming for even the most experienced investor.

Guys, there’s no need for that confusion. After all, a chart is nothing more than a roadmap. If you know how to read this roadmap, you can be very profitable.

Simply put, markets work in two different ways… There’s supply and there’s demand.

Demand drives the price up and supply drives the price down. It’s that simple.

Our job as chart technicians is to identify where the price is going to get pushed up and where it will be pushed down.

When we’ve seen a price successfully get pushed up, we want to buy.

When we predict the price is going to be pushed down, we want to sell and book our profit.

Remember, we don’t need to get the whole movement. We just need a little piece of that movement.

If we could take that little piece over and over again, we could earn ourselves a really rewarding living!

Less Risk, More Reward!

One of the best things about an investment strategy like this is that it can also be done in a low-risk manner.

You can identify your risk by knowing where the areas of support are and where the areas of resistance are.

If you see your risk is going to outweigh your reward, then it’s most likely not advisable to take that position.

On the other hand, if your reward looks to be two to three times your risk, that’s the time and place to put your money to work.

What’s Up Next…

Tomorrow, I will walk you through a chart of a trade, showing you the pick, how it transpired, walk you through its movements on the chart, share the write-up for it and the results. After all, that’s what we’re interested in, results!

Why am I doing this? To show you, not only how simple this process can be, but that there’s absolutely nothing to hide when doing things this way.

This is purely the approach to the market, technical analysis and having the skill set to do it!

So, when it comes to chart-style trading, you want to take that macro approach.

You want to identify the trend and where the support and resistance lines are.

You also need to locate channel structures.

After all this is done, you should be able to pinpoint when and where the ideal places to get long are, when and where the ideal places to get short are, and, most importantly, how to book that type of profit.

Hopefully, by going through all this with you tomorrow, you’ll get a better sense of this process and get to know what that start to finish feel is in this type of strategy.

Now, I’ll go ahead and tell you that this particular trade took about three weeks to transpire, but that’s alright!

After all, these things can take time, and that’s fine!

The idea is, after a trade like this, I will then have a good chunk of money that I can then park in another good, undervalued company and watch it grow many times its initial value over a longer length of time.

That’s the approach.

Simply put, the approach is to make a bunch of money, invest it so it continues to grow for us and repeat the process.

In this scenario, one method feeds the other method and provides a passive way to income.

All of this info and more will be discussed in detail in tomorrow’s new edition of A Better Way to Wealth!