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For the past millennium, treasure hunting has been a popular human activity.

While we may think of the activity as currently being relegated to archeologists and           eccentric rich people with too much time on their hands, I propose that there’s a modern         job that is actually another form of treasure hunting: stock trading. I speak from    experience, because since early 2006, I’ve been a treasure hunter.. I mean a stock trader.

Let me explain. After a few months of trading and learning a list of what not to    do, I finally stumbled upon a stock trader’s best friend, the stock chart. While it may not     be the equivalent of a treasure map, it’s pretty close, as some of those charts can lead you to some very profitable trades, i.e. hidden treasure. That’s the thing about hidden treasure, often it can be right there in front of you, but without a map to tell you where to dig, you’re not going to look for it.

A stock trader’s job is to interpret the price action of a stock, ideally gain some sort of insight or clue as to the future action of the price, then put them self in the position to make money off of it. Every now and then you see these stocks that runs hundreds, even thousands of percent, and you think how wonderful it would be to play a stock like that. Stocks like that are the elusive hidden buried treasure that every trader out there wants to find.

After witnessing and sometimes even playing those few and far between ‘treasure’ stocks, you may start to notice a few clues and tells that the charts will often show before the action unfolds, so you can start to look for those same clues in future charts. An experienced trader will often run a program called a filter or scanner, which will look for certain types of chart setups that they specify, and they’ll do this so they can try to spot those certain clues that may be hinting at an explosive rally. Day after day, these traders will spend hours trying to find that perfect chart setup that might just be implying that they’ve found a winner.

The thing is, there’s plenty of these types of stocks out there, you just have to know how to find them, i.e. have your own treasure map. You could be standing right on top of some buried treasure, but you wouldn’t know it unless someone or something told you there was treasure right below you. That’s the principle behind stock trading, figuring out how to find those winners that are right in front of your nose. The map is there, you just have to learn how to properly use it. Stock charts can offer you a perspective on the price action of a stock, and with the right understanding and knowledge of the subject, you can use that information to possibly find stocks that have good chances of turning into your own discovered treasure.

If you’re interested in learning (or further learning) about stock chart analysis, chart patterns, and just stock trading in general, please check out this helpful resource. Come join our community and we’ll all help each other become better traders.

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