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Strategies & Market Trends : Point and Figure Charting -- Ignore unavailable to you. Want to Upgrade?

To: David N. Jones who wrote (3691)	6/15/1998 10:45:00 AM
From: Ms. X	Respond to of 34811

David, thank you. That is excellent. I'm going to print it out full length here. Jan I am

To: David N. Jones who wrote (3691)	6/15/1998 10:47:00 AM
From: Ms. X	Respond to of 34811

Everyone, a great quote... (Thanks David for posting the original link found on another thread) TA QUOTE OF THE DAY The "Can't Wait Syndrome" "Another harmful form of overtrading relative to time is the Can't Wait Syndrome which occurs both in market entry and exit. Here again, accumulation and distribution do not occur every day or even every week in a form which is practical for most to act upon from a vantage point away from the floor. Impatience normally reigns supreme, and in the case of premature entry, a trader is habitually entering the market too early, finding himself anxiously waiting for his position to comeback to even money and or getting stopped out too often. Pre-mature entry may be caused by an entry method which is too broadly defined. For example in the case of long entry, it urges you to go long sometime between the last throes of the previous downthrust and the beginnings of the next upmove. The end of a downmove to the beginning of a tradable upmove is normally separated by some type of accumulation or telling price action. If your entry method is too broadly defined, you will have too great a latitude in deciding when to enter. Thus you probably will gravitate toward entering just as soon as you get an inkling of a reason just to end the tension created by the pending decision or even worse because you miss the tension and enthrallment of being in a position, or you fear missing opportunity or you seek quick revenge from the last loss(es). None of the above are good reasons to enter the market. Being habitually too early by not waiting for a clear indication to take action you lose hope and patience while caught in consolidations. Because tops and bottoms normally exceed expectations you are often stopped out before the move begins in earnest. These pre-mature trades by their very nature increase your overhead while disturbing your composure. The solution to this problem is to of course first discover and examine your transactions to ascertain if this habit does in fact exist (If you are not already aware of it). The further treatment of this problem lies in the recognition and study of the time factor in changing the trend from down to up or up to down. Large interests and professionals act after accumulational/distribution or price action itself establishes a potential reward which is a multiple of the defined risk. This potential is in an energy yet to be released requiring time or definitive price action to store. Seek to focus your energies on timing your entry to be more in harmony with the beginning of an upmove rather than in the ending of the last downmove." --Jesse Thompson

To: David N. Jones who wrote (3691)	6/15/1998 10:53:00 AM
From: wizzards wine	Respond to of 34811

David, how true that is, that's why we should wait for that first three box reversal back into X's from the previous column of O's. As Tom says, "Let the stock come TO YOU!" An excellent illustration David. Thanks Preston

To: David N. Jones who wrote (3691)	6/15/1998 12:11:00 PM
From: David N. Jones	Respond to of 34811

OFF TOPIC - QUOTES PART 1 A few more excellent posts from Dave Horne's TA Science Projects & Experimental Indicators thread. techstocks.com The thread is focused on experimental TA ideas however every now and then Dave digs out a gem of a quote from his TA library. [TA QUOTE OF THE DAY] Richard Wyckoff, on forming an independent opinion: (First in a series of 'words of wisdom' from the 'father of technical stock analysis') Anyone studying the stock market intends to remove themselves from the ranks of the uninformed public that dabbles with luck as their foremost rule of operation. A true student of the market doesn't graduate into actual trading before completing a self-imposed apprenticeship where experience becomes the teacher. Form your own opinion and try to make it so accurate and complete that you gain confidence in yourself. Be certain of your judgment before you venture a dollar in the market and don't let anyone entice you into hastily committing real money. Draw conclusions without the consultation of "experts" because every person views the market from a slightly different vantage point-which isn't likely to match yours. One expert may interpret price and volume movements from an investor's standpoint and another from a day-to-day trading outlook. The trader who is dependent on another person's opinions will not only fail to understand the market, but could very well be thrown off a proper course by offhand and conflicting opinions. [TA QUOTE OF THE DAY] Richard Wyckoff, on timing: After you have a list of candidates, go with the stocks that should move soonest, farthest and fastest based on your technical analysis. You want immediate action for your money and it is bad practice to hold a position for many days or weeks without getting anything out of it. Wait until you see a real opportunity. One good commitment a year will make profits of many times the interest you could earn on your money for a few months outside the market. . .but one hasty trade can set you back an entire year's interest plus the shock to your confidence. Don't chase after the move that has escaped. Your judgment will be biased by your first error and chances are you won't act with a clear mind. Look around for the next opportunity. On the other hand, don't jump in too soon and tie up money waiting for a stock to move up or down. Wait for the period of consolidation to end and let other people play with the stock until then.

To: David N. Jones who wrote (3691)	6/15/1998 12:25:00 PM
From: David N. Jones	Read Replies (1) \| Respond to of 34811

OFF TOPIC - QUOTES PART 2 [TA QUOTE OF THE DAY] ------------------------------------------------------- Richard Wyckoff Part 3: On Profit and loss: Above all, don't waste time regretting losses or lost opportunities. The only value of a mistake is the lesson it may teach; the only thought you will give to your errors will be studying the reasons for them. Working the stock market requires the courage to lose money, but risking more than you can afford to lose will warp judgment. Equally destructive and ill-fated is an obsession with amassing a fortune overnight. Don't allow actual or potential success in the early stages of learning to invest lure you into trading too large a proportion of capital. Don 't get fixed on a certain amount of profit you hope to make on any commitment. The charts will indicate the possibilities. . .but the market situation can change in 24 hours." Patience equals greater profits. This is the patience to wait for opportunities to develop and to wait for clear signals from the charts. Don't be in a hurry to get into the market simply because you have surplus cash. [TA QUOTE OF THE DAY] Richard Wyckoff, on market presence: Being in the market at all times is not the key to profits. There are several clear signals that warn you to pull out of the market. The first is a technical warning--your analysis gives unclear, confused signals. The other two are emotional warnings--you notice yourself relying on "instinct" rather than research and you notice a growing or chronic indecisiveness about executing trades. If at any time, you find yourself powerless to move because you haven't the nerve to trade, make trades on paper until confidence returns. Staying out of the market is as much a strategic move as being in it. Never get the idea you must be in the market all the time. In fact, plan to go completely liquid at intervals to prevent yourself from going stale, and to keep a fresh, clear perspective. It is much better to make one commitment a month that realizes a profit than to trade every day and show a net loss. [TA QUOTE OF THE DAY] ================================================== Richard Wyckoff on short selling: Selling short is not as easy for most people as trading on the long side. But the biggest and quickest money is on the short side. Trade on paper until you can sell short as easily as go long. A trader who can only operate on one side of the market is only half a trader. He sees everything through the eyes of a bull. He thinks everything is always going up. He never can see money on the short side.