How to Learn Technical Analysis for Free: Let's Get Started

How to Learn Technical Analysis for Free:

Nov 30, 2024

Introduction: Mastering Technical Analysis to Dominate Financial Markets

Economists like to take simple concepts and make them complex to hide their ignorance. Sol Palha

Let me be crystal clear: The markets are a battlefield where the strong devour the weak, and technical analysis is your weapon of choice. While others fumble in the dark, throwing away their capital on overpriced “guru” courses, you’ll master these tools without spending a dime. As Machiavelli himself would appreciate, “Everyone sees what you appear to be; few experience what you really are.” Let this be your advantage.

The Arsenal: Elite Oscillators for Market Dominance

Relative Strength Index (RSI): Your first weapon of mass profit. When others panic at RSI readings below 30, you’ll be the predator lying in wait. During the COVID crash, while the masses fled in terror, the RSI screamed “buy” to those with the courage to act. Remember: “It is better to be feared than loved if you cannot be both.” The RSI will tell you exactly when to strike.
Stochastic Oscillator: This is your market timing assassin. While amateur traders chase every movement, you’ll use the %K and %D crossovers to execute precision strikes. The weak hands will sell in panic; you’ll calculate your entry points with surgical precision.
MACD: Your strategic command center. When the MACD line crosses the signal line, it’s not just a technical signal – it’s a declaration of war on market mediocrity. Use it to crush the competition who rely on gut feelings and CNBC headlines.
Bollinger Bands: Your market intelligence radar. When prices touch the lower band during a crash, that’s your signal to “back up the truck” – a phrase that separates market warriors from mere observers.

The Ultimate Profit Weapon: Options Strategy During Market Crashes

Listen carefully because what I’m about to share separates the apex predators from the prey. When markets bleed and weak hands fold, here’s your blueprint for dominance:

The Put-Selling Assault

During catastrophic drops, execute this strategy with the precision of a military operation:

– Example: March 2020 COVID Crash

When Apple (AAPL) plummeted from $325 to $224, while amateurs panicked, strategic warriors sold puts at the $200 strike. Result? Immediate premium income of $12-15 per share, creating a net entry point of $185-188 if assigned. Those who executed this play either pocketed pure premium or acquired AAPL at a 42% discount from its highs. By 2021, AAPL hit $182 – a 98% gain from the potential entry point.

The Call Option Leverage Play

Use the premium harvested from put sales to fund call options with 6-12 month expiration dates:

– Example: Post-2008 Financial Crisis

When Bank of America (BAC) crashed to $3, selling puts at $2.50 generated massive premiums. Using this premium to buy LEAPS calls with a 12-month expiration created explosive leverage. BAC recovered to $15 by 2010 – turning $5,000 in premium into potential gains exceeding $50,000.

The Nuclear Option: Full Deploy Strategy

When markets crater 20%+ (like 2008, 2020, or 2022), deploy capital with extreme aggression:

– Initial 40% into quality blue-chip stocks

– 30% into aggressive put-selling on tech leaders

– 10% into LEAPS calls on the same underlying assets

– Reserve 20% for potential margin requirements or additional opportunities

For the young warriors (under 40):

Consider deploying up to 90% of available capital during crashes exceeding 30%. Why? Because time is your ultimate weapon. Even if you’re early, you have decades to be right.

Warning: This strategy requires iron discipline and precise execution. One mistake can be costly. However, as Machiavelli noted, “Where the willingness is great, the difficulties cannot be great.” The masses will always be ruled by emotion – your advantage lies in exploiting their weakness with calculated aggression.

Remember: “Fortune favours the bold but obliterates the reckless.” Execute this strategy with a surgeon’s precision and a warrior’s courage. The rewards can be generational in scale.

This is how empires are built – not through timid moves during bull markets, but aggressive action when others retreat in terror. Now go forth and conquer.

Mass Psychology: Your Path to Market Manipulation

Understanding crowd psychology isn’t just helpful – it’s essential for domination. As the Medici family knew, markets are moved by the twin forces of greed and fear. But here’s the crucial insight: These emotions are predictable and exploitable.

When you see panic selling, that’s your signal to strike. When you witness euphoria, prepare your exit strategy. As Machiavelli noted, “The vulgar crowd always is taken by appearances, and the world consists chiefly of the vulgar.”

While others curl into the fetal position during crashes, you’ll execute with a Renaissance banker’s cold precision. Remember: The greatest transfer of wealth in history occurs during market crashes – from the weak to the strong, from the fearful to the fearless.

If you’re under 40, you have a strategic advantage that would make Machiavelli himself envious: time. Use market crashes as your wealth-building catalysts. While others see destruction, you’ll see opportunity. Remember: “Never waste the opportunity offered by a good crisis.”

Conclusion: The Art of Market Warfare: Final Battle Plan

Let me be brutally clear: What separates market victors from victims isn’t just knowledge – it’s the ruthless will to execute when others freeze. Consider these war stories:

Example 1: March 2020 COVID Crash

While the masses panic-sold their futures away, a small elite cadre of traders deployed the strategies outlined in this manifesto. They sold puts on Amazon at $1,700 when it crashed from $2,170, generating massive premiums. Within 12 months, AMZN touched $3,700 – a 117% gain that separated market warriors from market casualties.

Example 2: 2008 Financial Crisis

When Lehman Brothers collapsed, and the financial system teetered on the brink, the weak scattered like leaves in a hurricane. But those who mastered these tools? They recognized the RSI screaming “oversold” on JPMorgan at $15, deployed options strategies with surgical precision and rode it to $140+ in the following years. That’s not just trading – that’s financial warfare.

Your Arsenal Is Now Complete:

– Technical Analysis: Your radar system

– Options Strategies: Your heavy artillery

– Mass Psychology: Your psychological warfare division

– Market Timing: Your strategic command center

But remember this eternal truth: Tools without the courage to use them are as useless as a sword in the hands of a coward. While the masses continue throwing away thousands on “guru” courses, you now possess something far more valuable – a battle-tested strategy for market dominance.

The Choice Is Yours:

You can join the hordes of “retail investors” who enter markets like sheep to the slaughter, or you can become the predator – the one who strikes when blood runs in the streets, who profits from panic, who builds generational wealth from the ruins of market crashes.

As Machiavelli observed, “Men judge generally more by the eye than by the hand because it belongs to everybody to see you, to few to come in touch with you.” Let them see you succeed; they need not know the strategic depths of your market warfare.

Final Command:

Master these tools. Study these patterns. Build your war chest. And when the next market crisis arrives – and it will arrive – execute with the cold precision of a Renaissance banker and the courage of a market warrior.

The weak will continue seeking “hot tips” and “secret strategies.”

The strong – you – will build empires from the ashes of their failures.

Remember: “Fortune favours not just the bold, but the prepared bold.”

Now go forth and conquer. The markets await their new master.

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