Here's the "Secret Sauce" of Wall Street's Richest Pros

I love to cook - predominantly because I love to eat.

Cooking is all about putting different flavors together in a way that delights all five senses.

And yes, one can cook from a written-down recipe and get a delicious outcome.

But... it's only in learning why cooking techniques applied to different ingredients work when put together that you are able to a) understand why the recipe works; and b) improve on it, especially when the ingredients we have vary from region to region and season to season.

And it might not surprise you to hear that the very same is true for making money in trading and investing.

There's a good, easy "recipe" I want to show you that yields delicious profits over and over again...

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Four Ingredients for Highly Profitable Chart-Reading

Wall Street's biggest banks pay people lots of money to read charts, and there's a very good reason for that. There's no better place to turn than a stock chart for learning what a stock will do, when it will do it, and how much it will move.

But just like anyone can learn to cook, I believe anyone can learn to master the reading of stock charts.

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There are just four things to look for...

Trend: This element tells us in what direction the security being charted is going. There are lots of ways to look at trend, but the bottom line is this: For the time frame we're considering, is the stock going up, down, or sideways?

The answer will tell us whether we want to make money with calls, puts, or some combination of the two... or whether it's best to give it a pass.

Speed: This is where we look at the momentum of the current move. We do this by asking a two-part question: How far has the stock gone, and how fast is it moving? In the asking, we learn a lot about whether the current direction can be sustained.

"Eyeballs": This item is like the Sesame Street song "One of These Things Is Not Like the Others" because it is not a normal way to think about chart reading. That is, until you understand what it is. Then you'll come to find it might be the most important thing. The concept is simple: It asks the simple question, "How many people are looking at this price level right now?"

There are price levels or zones that are more important than others, and that's because traders and investors expect prices to react at certain levels. There are more eyeballs on a chart as price approaches important support and resistance levels, moving averages, and other well-known indicators. Knowing them helps us identify, in advance, key reaction areas, and to make important decisions about volume and liquidity - must-know stuff for getting into and out of trades in a timely (read: profitable) manner.

Range: This is one of the most overlooked and misunderstood components of a chart - and one of my favorites! Volatility is the one thing lots of financial minds get consistently wrong (which is unusual, because they're a smart bunch on the whole). Getting a stock's trading range - its volatility - right therefore gives us a consistent, profitable edge in the market

I've used Amazon.com Inc. (NASDAQ: AMZN) here as an example not because I'm recommending it, but because it's simply a popular stock that everyone will know off the bat. You can apply what you've learned here to ANY stock chart.

Now, I'm going to be making some profit recommendations based on some charts I'm looking at with my 10-Minute Millionaire readers. You can click right here to get these recommendations, absolutely free of charge, as soon as they're released.

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About the Author

D.R. Barton, Jr., Technical Trading Specialist for Money Map Press, is a world-renowned authority on technical trading with 25 years of experience. He spent the first part of his career as a chemical engineer with DuPont. During this time, he researched and developed the trading secrets that led to his first successful research service. Thanks to the wealth he was able to create for himself and his followers, D.R. retired early to pursue his passion for investing and showing fellow investors how to build toward financial freedom.

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