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Sunday, August 5, 2012

Elliott Waves Confirm Explosive Summer Rally

The newest EWH Video v2 has been uploaded

Are your getting tired of the casino stock market taking your money?

Over the past several months we've seen a better trading environment than we've seen in a long time, with more volatility to come in the future. This is the traders market  I saw coming back in April, when I ran a free promotion...but I find it's harder to retain members than it is to predict the stock market, because most traders inevitably allow their emotions to become their worst enemy.

Accurate charts and targets are worthless when you allow emotion to get in the way of your trade. This is what I call, "thinking small", and I see it over and over again.

Effective trading takes patience, consolidation takes time, and for every action there is an equal and opposite reaction. Markets don't always play nice, but there are times when markets are very predictable, and I've proven it over an over again with uncanny accuracy, but the secret to being consistent over time comes down to knowing when not to trade.

Nobody makes money in a sideways market, and nobody can accurately time the market 100% of the time. Patience is the secret to winning, and a virtue for most of us.
If you come in thinking that there should be a clear trade for you on Monday morning, your head is already in the wrong place.     

Rather than offer you pie in the sky dreams I'd like to illustrate something that's all too real to me.

My Father was a stock broker, working for a well known firm in Chicago in the 1970's. His father before him became very wealthy investing during the industrialization of the modern world, yet this incredible expansion was inevitably followed by a lengthy period of market consolidation, and the revolution of the 1970's. In fact the market traded sideways for nearly the entire decade, shaking out traders on both sides. Many pseudo market timers including my Father lost big time, and I'm sure many gave up trading entirely, because this is predictably what happens... you give up. The market makers even have a name for this, "capitulation". The Dow finally broke out above Dow 1052 in 1984, as technology led the largest market expansion in history, but just like my dear old dad, most traders didn't see this breakout coming, and they inevitably missed the boat.

Much has improved since the time of paper charting.

1. Online brokerages allow us to move in and out of trades with lightning speed.

2. The internet allows us to track price movements in real time.

3. News breaks in near real time.

While these revolutionary innovations have opened markets up to anyone with an internet connection, and a few hundred dollars to risk, it has brought with it higher volatility. However, it has done nothing to limit the inherent risk in a market that continues to trade according to human emotion (fear/greed).  

I have watched many new traders come to with scared money, and unrealistic expectations, only to leave after only 1 month, without having learned anything. In 99% of cases this is an emotional reaction, and what I refer to - in my MPII publication - as "thinking small". This thinking small limits you to small gains, and locks in your losses.

But if you're willing to put some time and effort into learning Elliott Wave Theory, understanding that markets don't move according to your timeline; if you're serious about learning how to trust the charts, rather than letting your emotions get the best of you, then you should join today, so that you will be prepared to win, and win big whenever the time is right, whether that's tomorrow, next week, or next year, so make an investment in your self today!