Don’t try to guess how far a trend will go. You can’t.
The only concern a trader must have:
“Price makes news, not the other way around. A market is going to go where a market is going to go, just follow the trend.
The concept of price as the trading cue is just too damn simple for people to accept. This is seen in the mainstream press that always emphasizes the wrong numbers.
The traded market price can’t be fixed. It’s the only number to believe. You can
see it every day in the paper or online. However, this simple fact does not diminish the confusion. Alan Sloan, by all accounts a fine
finance reporter, searches for numbers to trust without ever
understanding how futile his search will be:
“If some of the smartest people on Wall Street can’t trust the numbers, you wonder who can trust the numbers.”
What numbers is Sloan talking about? Balance sheets? Price-earnings ratios? You can’t ever trust those numbers. Someone can
always alter them. Beyond that, even if you knew accurate balance sheet numbers, how can they can help you determine when or how
much to buy or sell?
An important feature of our approach is that we work
almost exclusively with price, past and current…Price is definitely the variable traders live and die by, so it is the obvious candidate for investigation…Pure price systems are
close enough to the North Pole that any departure tends to
bring you farther south.
The only concern a trader must have:
“Price makes news, not the other way around. A market is going to go where a market is going to go, just follow the trend.
The concept of price as the trading cue is just too damn simple for people to accept. This is seen in the mainstream press that always emphasizes the wrong numbers.
The traded market price can’t be fixed. It’s the only number to believe. You can
see it every day in the paper or online. However, this simple fact does not diminish the confusion. Alan Sloan, by all accounts a fine
finance reporter, searches for numbers to trust without ever
understanding how futile his search will be:
“If some of the smartest people on Wall Street can’t trust the numbers, you wonder who can trust the numbers.”
What numbers is Sloan talking about? Balance sheets? Price-earnings ratios? You can’t ever trust those numbers. Someone can
always alter them. Beyond that, even if you knew accurate balance sheet numbers, how can they can help you determine when or how
much to buy or sell?
An important feature of our approach is that we work
almost exclusively with price, past and current…Price is definitely the variable traders live and die by, so it is the obvious candidate for investigation…Pure price systems are
close enough to the North Pole that any departure tends to
bring you farther south.
