Maxims and Your Stock Technical Analysis Course !

A technical analysis course will give you the knowledge that there are sayings out there that can justify most things. There's always a maxim that is plausible that seems to take opposed actions and justify them . No matter what the event maxims are always around to provide a description . Many traders choose a maxim that will support their actions. Orin Thevault (Commodity Futures Game, Who Wins, Who loses,Why! - Mcgraw Hill ) states that sociologists have named this phenomenon " selective perception " . This maxim provides some comfort to the trader when he ends up having a loss or gets a profit that is smaller than he should have had.

The successful trader derides maxims as conventional wisdom , that are overly general and have no predictive value and belong more in an explanation of random-walk theory than in a trading plan . He believes that success in trading requires more than the judicious choice and observation of maxims .

"Nothing is so useless as a general maxim" .
- Thomas Babington
Lord - Macaulay - 1859

Theoretically , if a maxim was correct all the time its validity would be eliminated because it would be followed so much . Due to human nature, on a regular basis good maxims get broken . If we have a great 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 can be used in commodity trading . And, some of them are rather profound and should be committed to memory . Take you're choice . Really , you should come up with a collection of your own maxims that work out for you and test and question these maxims repeatedly.


SOME ESSENTIAL MAXIMS

The most effective approach to the objective of maximizing results is on a small scale playing a favorable game, but yet a chance of success is still reasonably provided, is playing a game that is favorable on a scale that is large avoiding ruin with enough early profits . Even an unfavorable game can give you results that are profitable if you bet heavy and seldom play . The road that will definitely end you up in a big disaster is going with an unfavorable game all the time. More can be learned when you take a stock technical analysis course.

Good sports die broke .

There are no sure things .

Traders sleep, markets don't .

Dialog is appropriate if the mutual goal is enlightenment .

Accidental successes usually turn into accidental failures .

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 .

Sell news and buy rumors .

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

Sell too soon and avoid buying at the bottom .

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.

Many a healthy reaction has proved fatal .

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

There is wisdom in patience . Wait for potential high profits.

Don't trade often unless the plan you have requires you to often take positions.

Everyone can find fault with any maxim .

Hoard half the profits you make .

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

Sure, the strong and the fast don't always end up winning the battle, but you should bet on that.


MAXIMS FOR THE PESSIMIST

If anything can go wrong, it will

No matter how great your results are, there is a person who will fake a better 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 usually the mistake .

It may be impossible to get a wrong number, but you can still find some way to do this.

The path that leads to failure is broad .


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 . On up days you should only sell .

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


Author:
Charles Drummond is a Canadian trader who has written nine books about trading and has created a stock technical analysis course called “Drummond Geometry.” His biography and further information about his work can be found at the www.drummondgeometry.com website.