Tuesday, January 15, 2008

Do not impose your beliefs on the market.

Example: If you firmly believe that X is going to rally, wait till the trend is heading north before buying. If in a bear market, and you bought X in the expectations that a bull market will materialize, then you are trying to impose your beliefs on the market, fighting the trend. Although ultimately, you may be right, but it's not very wise.

Be a trend follower, not a predictor. That applies to the situation now.

Extracted and edited from "Japanese Candlesticks Charting Techniques by Steve Nison"

** I just completed this book, after a long long time. Finally.

1 comments:

QUALITY STOCKS UNDER 5 DOLLARS said...

The market is never wrong but investors are all the time.

 

blogger templates | Make Money Online