I've been learning/practicing/losing/winning/crying/laughing/living/dying the stock market using Volume Spread Analysis (VSA) for about four years. To anyone who is interested in taking up this profession I can say that I have looked around extensively at strategies and many ways of trading, and I can truthfully say that, whilst I would not say that VSA is the only way - I know there are many traders who are very successful using other methods - I know that VSA is the closest you will get to the market.
I spend quite a lot of time with Tom Williams, the inventor of VSA (based on the Wyckoff method), and can say I'm constantly learning from him. Tom is an ex-syndicate trader who was based in the Beverley Hills back in the 1960s and he had the privilege of learning how the professional (BIG, BIG MONEY) players read the charts. Tom is a very generous man, likes to help others, and brought his knowledge back to the UK where he programmed it into a piece of software (now known as Tradeguider), wrote a book, and continues to teach others. Having the privilege of spending a lot of time with Tom has allowed me to pick up a lot of knowledge about the markets and how to read the charts successfully.
To those starting out, I would say that trading is probably one of the hardest professions in the world. You not only have to learn how to read the charts, but you also have to manage your money, and most importantly - MANAGE YOUR EMOTIONS! You have to deal with the way the market is manipulated and the tricks the smart money (professionals) use to make you believe your analysis is wrong.
If you want to be successful at trading the stock market using VSA, follow the following steps:-
1. Read 'The Undeclared Secrets That Drive the Stock Market' by Tom Williams, available at www.geniechartist.com.
2. Join the VSA Club, run by Tom and Tradeguider - at www.vsaclub.com
3. Learn all the VSA principles, set up a demo account, and practice, practice, practice.
VSA works. But you must be PATIENT, DISCIPLINED, AND ACCEPT TOTAL RESPONSIBILITY FOR YOUR ACTIONS - taking responsibility when losing as well as winning means you will learn much quicker and be successful.
As the blog develops I hope to be able to point out the VSA principles and how they work through my trades/charts.