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THE MARKET IS NEVER WRONG (0 viewing)

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THE MARKET IS NEVER WRONG

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#1569

ttt (User)

Junior

Posts: 105

9 Months, 2 Weeks ago

THE MARKET IS NEVER WRONG

Extracted from Japanese Candlestick Charting Techniques by Steve Nison
Second Edition, Pg 184

What do I mean by the expression â€śthe market is never wrongâ€ť? I mean do not try to impose your beliefs on the market. For example, if you are firmly convinced the NASDAQ is going to rally, wait until the trend is heading north before buying. Say the NASDAQ is in a bear market. If you buy with the expectation that a bull market will materialize, you are then trying to impose your hopes and expectations on the market. You are fighting the trend. This could be disastrous. You may ultimately be correct in your bullish viewpoint, but by then it may be too late. As an analogy, imagine you are driving along a one-way street, You notice a steamroller going down this one-way street the wrong way. You stop your car, take out a sign (that you always carry with you) that reads, â€śStop! Wrong Way!â€ť and hold it in front of the steamroller. You know the steamroller is going in the wrong direction. But the driver may not see you in time. By the time the steamroller turns around, it could be too late. By then you may be part of the pavement.

So it is with the markets. If you are bucking the trend, your outlook may turn out to be correct â€“ but by then it may be too late. Do not impose your will on the markets. Be a trend follower, not a trend predictor.

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#1598

ttt (User)

Junior

Posts: 105

9 Months ago
I hope you are NOT part of the pavement!

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#1625

trendanalyst (User)

Newbie

Posts: 2

8 Months, 3 Weeks ago
Agree with you. I came across an article talking about trends. Basically, the author said that trend is divided into 6 phases. If you interested to find out more you can go to my blog www.trendanalyst.blo gspot.com

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