12th Mar 2010
Technical Analysis Course – What You Need To Know About Maxims
A technical analysis course will give you the knowledge That about anything can be justified with an old saying . There is always an equally plausible maxim that seems to justify actions that are diametrically opposed. It doesn’t matter what the event happens to be there are maxims around to describe it . Many traders choose a maxim that will support their actions. It was Orin Thevault that said that “selective perception” is what sociologists have called this . The trader is given some comfort with this alibi when he ends up having a loss or gets a profit that is smaller than he should have had.
Often traders that are successful scoff at maxims, that are general and without value and belong more in an explanation of random-walk theory than in a trading plan . He thinks that trading success requires more than just 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 its validity would be eliminated because it would be followed so much . Human nature is such that any valid maxims are broken with monotonous regularity . So, if we do have a good maxim , it probably doesn’t mean a whole lot does it? More than likley it won’t really be paid attention to. People can’t remember everything . Perhaps Lord Macaulay was really right. There are some of those maxims out there, which are applicable to good commodity trading . Some maxims are quite profound and should be remembered . You can make your own choice. Really , 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 playing a game that is favorable on a small scale , but yet a chance of success is still reasonably provided, is on a large scale playing a game that is favorable with enough profits coming early in the game to avoid ruin . A game that is unfavorable can bring up profitable results if you rarely play and bet big. The only road that is sure to end in disaster is constantly playing a game that is unfavorable . You can learn more about this by taking a technical analysis course.
When a good sport dies, he’s broke.
Sure things don’t exist .
Traders sleep, markets don’t .
Dialog is appropriate if the mutual goal is enlightenment .
Success by accident usually turns into failure by accident .
There are negative and positive aspects to winning .
The things a few can do can’t be accomplished by man.
Take a position where there is little resistance .
Sell off famine and purchase glut .
Buy rumors – sell news .
A bull and bear can both make money – a hog can’t .
Don’t buy at the bottom and always sell too early .
Buy what will not go down in a bear market . Don’t purchase seomthing in a bull market that won’t go up .
Fatality has occured to many healthy reactions.
Watch out for a trend when market opinion seems one sided .
There is wisdom in patience . Wait for the times when it seems you can get unusually high profit .
Trade infrequently unless you’re trading plan reasonably requires you to take positions often .
There is hardly a maxim that someone could not find fault with .
Put half your profits in a safety deposit box .
Money is easier to make than it is to keep .
Sure, the strong and the fast don’t always end up winning the battle, but you should bet on that.
PESSIMIST MAXIMS
Something that can go wrong will
No matter how great your results are, there is a person who will fake a better one.
No matter what the result, there’s always someone eager to misinterpret it .
In any collection of 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 .
Broad is the path that leadeth to destruction .
MAXIMS ON THE FUZZY SIDE
Let profits run and cut your lossings .
( this is like encouraging someone to be happy and stay healthy. )
On down days, only buy . Only sell on days that are up.
Only going to the hard knock school will give you better teaching than a technical analysis course.
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.
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