Charting Secrets By Louise Bedford Book Review & Key Takeaways

Louise Bedford wrote a very powerful book called “Charting Secrets – Trade Like A Machine and Finally Beat the Markets Using Bulletproof Strategies”. This book teaches you the fundamentals of analysing charts in the share market and even the forex market.

Here are some key takeaways from the book:

Charting is Sexy

In this chapter, Louise says that from what she’s seen, fundamental traders and technical traders have different mindsets and behaviours. The fundamental traders tend to spend a lot of time analysing financials statements, macro economics, influences via commodities and elections etc. This is time consuming and you really have to dedicate so many years into understanding these macro trends.

However with technical traders, they are not influenced by news, although they do take them into consideration such as NFP etc. They trade based on what they see real time which is in the charts. The money is in the charts and by learning how to correctly read them, you’ll still profit without reading through financial sheets like a nerd. Louise also says that technical traders dress better than fundamental traders, I agree with this statement *Puts on hugo boss suit*

Volumes

In this chapter, Louise talks about the importance of volumes in a chart. If you look on a chart, you may see bars which indicate whether there is a surge of buyers or sellers in the market.

This chapter gives you further confluence of finding out whether a market will continue it’s trend. I found this chapter very interesting for I don’t use volumes in Forex and still need to learn more about this.

Moving Averages

In this chapter, Louise shares one of the most powerful indicators when you’re trading in the sharemarket. Moving averages. This is a very popular indicator for it contains a mathematical algorithm that plots lines on a chart based on the previous 30 day average (or whatever you customise).

I found moving averages a very powerful method to help ensure you trade towards the main trend, not against it.

Candlesticks

Louise briefly touches on this topic but she has another book written entirely on this topic for there’s so many candlesticks to learn.

Candlesticks is the art of identifying price moments during a short period of time. For example, if you were to see a trend moving upwards, you would use candlesticks to see whether there will be a retracement.

A common method of using candlesticks is to see a sequential trend such a bull trend. The candles would all be white and if you were to see a doji candle, this would indicate a market reversal for the trend has possibly discontinued.

Psychology

This is a big chapter for psychology plays a huge role in a trader’s success. I still struggle with this today for whenever I have a loss, it affects me mentally and I either stay away from the market and lose opportunities or I take revenge on it etc.

Everyone has their vices and psychology could be one of them. Great traders seem unaffected with losses and they take the necessary trades in order to get their big wins.

Golden Cross

This is a great strategy whereby you use the moving averages indicator and if they cross, you know that the market has reversed and you can either enter or exit the trade.

Conclusion

Overall, this is a sensational book that teaches you the basics behind charting the markets. Louise explains the concepts in a very easy to understand fashion and the book also comes with great exercises so you can retain your learning.

It’s a great book and I highly recommend for you to check it out.

Stay Strong and Be Relentless.

Khoa Bui

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Author: Khoa Bui

Khoa Bui is an author, trainer and chief editor of YouBeRelentless. He enjoys reading books on self development, success, productivity, money, relationships and leadership. When he’s not writing, he likes to enjoy a glass of red wine with a fine cuban cigar while watching the entire season of Entourage. You can check out Khoa’s work at www.khoa-bui.com.

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