Wednesday, February 05, 2014

Overview of Trends and Price Levels

1. Regarding Trends

(a) A market should not be considered bullish or bearish, so you should avoid taking any bullish or bearish view of any market.

(b) Simply take the position based on the technical indicators:
(i) If the technical indicators point up, be long.
(ii) If the technical indicators point down, be short.

(c) Livermore said:
‘There is no such thing as the bullish or bearish side of a market; There is only the right side.’

2. Regardubg Price Levels

(a) A market is never to high to buy or too low to sell.

(b) Do not go short because a market is too high, or overbought. It will probably go higher.
Do not go long because a market is too low, or oversold. It will probably go lower.

(c) Bottom line: Base trades on the objective, proven indicators. Do not make exceptions!


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"There is the plain fool who does the wrong thing at all times anywhere, but there is the Wall Street fool who thinks he must trade all the time."J Livermore Manchester City FCl Crude Palm Oil


From Dragons and Bulls by Stanley Kroll
Intro and Foreword
The Importance of an Investment Strategy
5 The Art of War, by Sun Tau (circa 506 BC) and The Art of Trading Success (circa AD 1994)
That's the way you want to bet/a>
Long-term v Short term trading
Technicals v Fundamentals
Perception v Reality
Part 1: Winners and Losers
Part 2: Winners and Losers
Sun Tzu: The Art of War
Those who tell don't know, those who know don't tell
Why there is no such thing as a "bad market"
The Secret to Trading Success
The Experts, do they know better?
Risk control and money management
Good advice
The 'good bets' business by Larry Hite
Don't lose your shirt
Ed Sykota's secret trend trading system