Im really just having problem understanding how people collect information before they make buy and sell decision I know im missing alot of context when i look at charts thats what im trying to learn now.
You may benefit from providing some context to us concerning your experience with learning trading so far. How long have you been learning how to trade mute9003?
about a year before i started reading books. started reading books and watching youtube videos begining of this year. at the same time i added alot more to my account.and yolo'd on dpw with 10000 shares at 2.14 because it looked like it was holding suport at 2:15-2:20 consistently. he had been spamming twitter with news about his great investments in other companies and how he is building a massive crypto mining company etc. tagging dpw in every post without actually mentioning anything directly about dpw ever. also made few 1000 on brqs but then jumped the gun and jumped back in too early at 1:60 when it looked like trend reversal but it was a fake one and it started dipping as well. been riding the shit wave since then not sure what to do with it whether to ride out the 10k in losses until some kind of rebound or exit with massive loss that is 1/3 of my total account i tried my best to chart and everything on the chart seemed to have good pattern of the uptrend on both stocks but then the bad news started hitting about the market in general and all my hodlings seemed to go down i also have dogecoin and shiba that i was up few 1000 until recent months.( but i bought in on these very cheap) so i held on to them through the peak and didnt exit again because im not confident in my skills i had a feeling that those peaks were tops but doubted myself again. in general i do spot peaks and get that gut feeling that i should exit but the doubt and FOMO stops me every time( what if it goes higher) even when i see obvious downtrend starting iend up riding the down wave almost every time for same reason because i cant read market in general ( at least thats what i think) i should have set stop loss but in the past when i did that i got stomped out and almost burned through all 3 of my PDT and nearly had my acccount locked for 90 days. one obvious mistake was too big of a position with a small account which i understand now. and as far as waiting for confirmation of an uptrend i thought i had it but apparently i was wrong on the dpw. brqs i did jump the gun knowing i jumped in too early. yyolo kicked in after a good profit from that stock so i thought i could catch a rebound after that spike and dip few months ago
so if im understanding this correctly you start with looking at charts on different time frames to look for confirmation of the trend or pattern you saw look for patterns forming and if patterns make sense or complete then you act on it and if patterns break or dont make sense or consolidate or anything else that is not a pattern you recognize then you start looking for info outside of the chart like looking at market direction in general looking at company financial records looking at twitter and social media about that stock and news etc.
i notice patterns but alot of times dont know what to do with them for example i noticed that lately net inflow has noticeable trend reversal at the end of the trading day. if it was going down it has a decent size spike right before closing and other way around but i have no clue if i can do anything with it...
Often times, using simple moving average turned down OR a bar that closes below a pivot low, Trend has turned down. in this period, "Head was formed and pullback has happened, so waiting for either a move to break new highs or failure to break highs of head, when price breaks highest low by couple of ticks is confirmation of right shoulder. Depending on context, price will either come down, go sideways, make another right shoulder or resume back up. I am a scalper, so my targets are 1-8 ticks, day traders are going for much more as in points trading ES. Bigger the targets more often means lower winning percentages. There are occasionally H&S with trend. If I was back in 1987, with knowledge I know now, I would just trade long term commodities and learn how to hedge. Much less time involved, same monies over course of a year, less trades.
don't complicate it and if your looking for successful trading methods in text books save your time and stop doing that because if it really worked they wouldn't give it away in a book. More importantly don't be in hurry this profession takes several years to master. After you discover and learn a trading method that you feel comfortable with and believe that your idea is working then you'll have to learn YOU - conquering the self and the emotional side of this business is what I and others have found most challenging. Trading with real sizeable $$$$$ is a whole other learning experience.