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Strategies & Market Trends : TA Science Projects & Experimental Indicators -- Ignore unavailable to you. Want to Upgrade?

To: HeyRainier who wrote (91)	3/4/1998 11:13:00 PM
From: ftth	Read Replies (1) \| Respond to of 237

[TA QUOTE OF THE DAY]------------------------ A few more John Bollinger quotes from an interview in TASC: Beyond a shadow of a doubt, the psychology of market participants is the most important variable. It's not sufficient to buy a stock that's cheap or that has good money flow or that has good on-balance volume characteristics. Other people have to believe the way you do. And it's in the transition of the crowd from not believing to believing that the real money is made. And John's favorite book is: The entire area of work that Humphrey Neill kicked off with his book, The Art of Contrary Thinking, is very important and this leads to my favorite investment book of all time: The Extraordinary Popular Delusions and the Madness of Crowds by Charles McKay. And one last one that I can relate to: I spent a good deal of my career pursuing a mechanical approach to the market. In the beginning, I thought that it was simply a matter of finding the right moving average with the right trading rule. Eventually, my research led to finding the right group of trading bands and the right group of trading rules to go with it. Ultimately, I decided that the more adaptive the approaches were - that is, the less mechanical and more sensitive to the evolving market - the better they worked.