Investing in Japanese
Recovery
By: www.CandleStickForums.com
The world is still not over the
shock of the terrible earthquake
and tsunami that hit Japan
recently. However, active inve...
It could be Forex trading the Yen,
which has risen in value as
Japanese companies and investors
repatriate offshore assets...
Many of these companies have no
production facilities in the
Northeastern area of Japan directly
affected by the natural d...
The trader who correctly reads market
trends and market reversal with a
close eye on Candlestick patterns may
well profit ...
As usual the trader will look for
signals such as the Doji
Candlestick, which signals market
indecision, to light the way....
Investing in Japanese recovery
requires that the trader do both
fundamental and technical
analysis. Regarding fundamental
...
Thus few stocks will be directly
affected by damage to company
facilities. However, the damage to
nuclear power plants and...
In analyzing the fundamentals while
investing in Japanese recovery the
devil, as usual, is in the details. The
problem for...
Also, many stock price moves are
related to the fundamentals but
are more strongly driven by
changes in market sentiment. ...
Technical analysis with Candlestick
pattern formations can help those
investing in Japanese recovery by
alerting the trade...
Many anticipated an even worse
scenario than what is currency known
to be the case. In such moments of
trading psychology ...
We mentioned the Dojo
Candlestick previously. The Doji is
a candlestick that is squashed flat.
That is to say the opening ...
If that is the case the market is
very indecisive. When this
Candlestick occurs on Candlestick
charts that have been trend...
In the case of falling Japanese
stocks after the natural disaster it
can be a sign that traders are
collecting themselves ...
However, the trader does not need
to interpret. He only needs to
trade according to his Candlestick
charts and Candlestick...
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Investing in Japanese Recovery

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Investing in Japanese Recovery

The world is still not over the shock of the terrible earthquake and tsunami that hit Japan recently. However, active investors and traders are already looking at investing in Japanese recovery. Investing in Japanese recovery can take several forms. It could be Forex trading the Yen, which has risen in value as Japanese companies and investors repatriate offshore assets. Investing in Japanese recovery can be done by doing Candlestick analysis on stocks that have seen their stock prices fall dramatically. Many of these companies have no production facilities in the Northeastern area of Japan directly affected by the natural disaster. One might well expect to see those stocks recover to their normal values. The trader who correctly reads market trends and market reversal with a close eye on Candlestick patterns may well profit by investing in Japanese recovery. Long term investing in traditionally strong companies like Toyota and Sony could be profitable if the trader is selling short during a market panic and buying stock at the turnaround. As usual the trader will look for signals such as the Doji Candlestick, which signals market indecision, to light the way.

Investing in Japanese recovery requires that the trader do both fundamental and technical analysis. Regarding fundamental analysis, news reports indicate that the Northeast coast of Japan is not the location of much industry. Thus few stocks will be directly affected by damage to company facilities. However, the damage to nuclear power plants and possibility of radiation leaks, meltdown, and loss of a substantial amount of power in the Japanese power grid could affect many companies distant from the actual earthquake and tsunami damage. In analyzing the fundamentals while investing in Japanese recovery the devil, as usual, is in the details. The problem for the investor who only relies on fundamentals to guide his buying stock, selling stock, trading options, and trading futures is that the fundamentals are rapidly absorbed and discounted by the market. Also, many stock price moves are related to the fundamentals but are more strongly driven by changes in market sentiment. Here is where the time honored use of Candlestick chart formations comes into play.

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Investing in Japanese Recovery

  1. 1. Investing in Japanese Recovery By: www.CandleStickForums.com
  2. 2. The world is still not over the shock of the terrible earthquake and tsunami that hit Japan recently. However, active investors and traders are already looking at investing in Japanese recovery. Investing in Japanese recovery can take several forms. By: www.CandleStickForums.com
  3. 3. It could be Forex trading the Yen, which has risen in value as Japanese companies and investors repatriate offshore assets. Investing in Japanese recovery can be done by doing Candlestick analysis on stocks that have seen their stock prices fall dramatically. By: www.CandleStickForums.com
  4. 4. Many of these companies have no production facilities in the Northeastern area of Japan directly affected by the natural disaster. One might well expect to see those stocks recover to their normal values. By: www.CandleStickForums.com
  5. 5. The trader who correctly reads market trends and market reversal with a close eye on Candlestick patterns may well profit by investing in Japanese recovery. Long term investing in traditionally strong companies like Toyota and Sony could be profitable if the trader is selling short during a market panic and buying stock at the turnaround. By: www.CandleStickForums.com
  6. 6. As usual the trader will look for signals such as the Doji Candlestick, which signals market indecision, to light the way. By: www.CandleStickForums.com
  7. 7. Investing in Japanese recovery requires that the trader do both fundamental and technical analysis. Regarding fundamental analysis, news reports indicate that the Northeast coast of Japan is not the location of much industry. By: www.CandleStickForums.com
  8. 8. Thus few stocks will be directly affected by damage to company facilities. However, the damage to nuclear power plants and possibility of radiation leaks, meltdown, and loss of a substantial amount of power in the Japanese power grid could affect many companies distant from the actual earthquake and tsunami damage. By: www.CandleStickForums.com
  9. 9. In analyzing the fundamentals while investing in Japanese recovery the devil, as usual, is in the details. The problem for the investor who only relies on fundamentals to guide his buying stock, selling stock, trading options, and trading futures is that the fundamentals are rapidly absorbed and discounted by the market. By: www.CandleStickForums.com
  10. 10. Also, many stock price moves are related to the fundamentals but are more strongly driven by changes in market sentiment. Here is where the time honored use of Candlestick chart formations comes into play. By: www.CandleStickForums.com
  11. 11. Technical analysis with Candlestick pattern formations can help those investing in Japanese recovery by alerting the trader to changes in market sentiment. When the earthquake hit, followed by the tsunami it took untold thousands of lives. The ensuing market panic spread across the globe. By: www.CandleStickForums.com
  12. 12. Many anticipated an even worse scenario than what is currency known to be the case. In such moments of trading psychology fear is a major factor. Having a sense of whether fear is still driving such a market or if a market is ready to turn around as traders collect their wits can be extremely profitable. By: www.CandleStickForums.com
  13. 13. We mentioned the Dojo Candlestick previously. The Doji is a candlestick that is squashed flat. That is to say the opening and closing stock prices are virtually equal. The shadows may extend far above and below the body of the candle. By: www.CandleStickForums.com
  14. 14. If that is the case the market is very indecisive. When this Candlestick occurs on Candlestick charts that have been trending up or down it signals the strong likelihood of a reversal in stock price. By: www.CandleStickForums.com
  15. 15. In the case of falling Japanese stocks after the natural disaster it can be a sign that traders are collecting themselves and thinking critically about the ability of the Japanese economy and the Japanese people to pick themselves up and rebuild. By: www.CandleStickForums.com
  16. 16. However, the trader does not need to interpret. He only needs to trade according to his Candlestick charts and Candlestick trading tactics in order to improve his chances of making profits from investing in Japanese recovery. By: www.CandleStickForums.com
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