Technical Analysis Course - What You Need to Know About Maxims

A technical analysis course will teach you That about anything can be justified with an old saying . There's always a maxim that is plausible that appears to justify diametrically opposed actions . No matter what the event maxims are always around to provide a description . Traders often blithely choose the one that encourages only what they are doing . It was stated by Orin Thevault that sociologists have named this phenomenon " selective perception " . The trader is given some comfort with this alibi when he deals with a smaller profit or even a loss .



The successful trader derides maxims as conventional wisdom , that are general and without value and they are more for a random walk explanation rather than for a real plan for trading. He knows that success as a trader includes more than the judicious choice and observation of maxims .



"Nothing is so useless as a general maxim" .

- Thomas Babington

Lord - Macaulay - 1859



Theoretically , if there was a maxim or rule that was always correct it would be so used that its validity would be eliminated. Human nature is such that any valid maxims are broken with monotonous regularity . If a good maxim is had, does it really mean much ? More than likley it won't really be paid attention to. After all, you can't remember everything . Perhaps Lord Macaulay was really right. However, there are some maxims , which are applicable to good commodity trading . And, some of them are rather profound and should be committed to memory . Take you're choice . Actually, I suggest that you make you're own collection of maxims that are good to you and test and question these maxims repeatedly.





ESSENTIAL MAXIMS TO KEEP IN MIND



The top approach that will enable you to maximize your results is to play a favorable game in a small scale less desirable , but still providing a reasonable chance of success , is on a large scale playing a game that is favorable with enough profits coming early in the game to avoid ruin . Even an unfavorable game may yield profitable results if one plays seldom and bets heavily . The only road that is sure to end in disaster is constantly playing a game that is unfavorable . More can be learned when you take a technical analysis course.



Good sports die broke .



There is no such thing as a sure thing.



Traders sleep, markets don't .



If enlightenment is the mutal goal, dialog is appropriate .



A success that is accidentaly usually ends up a failure that is accidental.



Winning manifests both positive and negative aspects .



The many can't accomplish what the few can do .



Along the line of least resistance is a good place to take a position.



Sell off famine and purchase glut .



Buy rumors - sell news .



A bull can make money. A bear can make money, but a hog never can .



Don't buy at the bottom and always sell too early .



In a bear market but what won't go down . In a bull market, never make a buy on something that won't go up.



Fatality has occured to many healthy reactions.



Watch out for a trend when market opinion seems one sided .



Patience is very wise. Wait for potential high profits.



Unless you have to take frequent positions, trade infrequently .



There is hardly a maxim that someone could not find fault with .



Use a safe deposit box to keep half of your profits.



It's easier to make money than it is to keep it .



While the strong and swift don't always win, you should bet that way .





MAXIMS FOR THE PESSIMIST



Something that can go wrong will



No matter your results, someone else will make up a better fake one .



Someone is always there to misinterpret your result, no matter what it is .



When you collect data , the figure that looks correct obviously - is where a mistake will be .



There's always a way to get a wrong number, even if it's impossible .



Wide is the road that leads you to destruction.





MAXIMS ON THE FUZZY SIDE



Cut you're losses. Let you're profits run .



( basically this is just like telling a person to keep healthy and happy . )



On down days, only buy . Sell only on up days .



Only dealing with hard knocks will give you more teaching than a technical analysis course.





Author:

Charles Drummond is a Canadian trader who has written nine books about trading and has created a technical analysis course called "Drummond Geometry." His biography and further information about his work can be found at the technical analysis course website.