Fly Fishing the Stock Market: How to Search for, Catch, and Net the Market's Best Trades

CHAPTER 2

The Tackle Box

Iused to marvel at the contents of my father's tackle box. It was fun to open his closet, lift the lid of the box, and pick through all the cool items. Each had a distinct purpose for an experienced fisherman, but I had no idea when, where, or how to use those things. I began to ask questions and observe experts.

A trader's toolbox is just as interesting and intimidating to a beginner. Everything in it makes sense to an experienced trader. A beginner needs to ask, watch, and copy the experts before he develops his own style.

Everything in a fisherman's tackle box is ultimately linked to catching fish, and every item in a trader's toolbox links to the price of the entity that is being analyzed and traded. Price is the most important element. All indicators and chart patterns help interpret the behavior of prices.

In the beginning, I felt overwhelmed by the many different ways of interpreting price behavior. A multitude of price patterns and tools left me feeling confused. The key step in my sorting them out and learning to trade was becoming a member of SpikeTrade, an online community of traders comprised of beginners and experts. A beginner learns by looking over the shoulders of Spikers—the elite members—and observing their analysis and trade management. Members can ask Spikers questions, piggyback their trades, and even receive real-time e-mails whenever a Spiker changes his analysis and enters or exits a trade. There I learned important concepts and ...