The Market Requires Constant Practice - October 2001
(Written end September, posted Oct 5th, 2001.)
The market requires constant practice.
First, to study history, the charts and the past action; then to practice buying and selling, and your own
psychological reactions to this in the present; so that we may be prepared
for the future. Then itís a matter of using our education and study, for
profit. Take ABC for example.
ABC, from a business point of view has some interesting possibilities given
its cement background, its activities in the north of Australia, and the
looming Darwin rail project. So the company goes on our watch list. Is
there an opportune time to buy ? Use our charting knowledge. We know that
tops become bottoms, often at mid points. We know, due to history, buying
on panic days, (being used to taking stop losses beforehand when everyone
else is selling often cause they did not take their stops), and we can also
know in advance from our Gann study, the probable time in the year to be
extra careful. (Refer posting Ďpanic daysí for more on that.)
ABC represented an opportunity this month, as described above. I am not
saying this is always easy; as Jules has said often enough, the left hand
side of the chart is a damn sight easier than the right hand side; however
it is through experience of past patterns that we learn how the market
works, because basically the future patterns will just repeat the past.
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