Financial markets are awash with predictions and sure-fire trading systems. Most predictions will be proved wrong. Technical analysis used with the right price charts will provide most of the answers. Each chart, whether it is 1-minute, 5-minute 60-minute, daily, weekly or monthly, provides useful information and at times serves to illustrate how fundamentals are of little value. Sometimes they show rationalization will get you nowhere, more often keeping you on the wrong side of the trend. Fine-tuning is absolutely essential, especially where leveraged markets are concerned; and money management is a key factor.
The best rewards come from getting in a trend early, when it offers the least risk. Some of the big gains come later in the trend and that is usually the time when risk is greater. Emotions play a big part, especially when there is huge volatility in futures and currency markets...

Excerpted from an article originally published in the Jan/Feb 2011 issue of YourTradingEdge magazine. All rights reserved. © Copyright 2011, Your Media Edge Pty Ltd.
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