Recognizing the dynamics of financial markets to invest successfully. This book is a must-have guide to understand the operative and psychological behaviours of financial markets.
The author describes various emotional situations (apprehension, fear, anxiety, caution, optimism, euphoria, excitement) in which every investor may find themselves and which may affect their operating decisions. The first part of the book shows how the human mind relates to money and investments in general. In particular, the various psychological steps which take place before, during and after every transaction are described.
It then describes in detail some mental strategies that can be adopted to start a profitable trading activity. The main operating techniques provided by Technical Analysis are investigated in the central part of the book, from a psychological and technical point of view.
A detailed analysis is made of graph patterns obtained by means of Japanese candlesticks, of market movements identified by means of Elliott waves and of the indications provided by the main quantitative indicators. The objective is to highlight the dynamics and market forces that generated a specific situation and how investors can use it to their benefit.
With the help of volume analysis and of some practical patterns, many real-world cases are also described, taken from the author’s personal experience.