Technical Analysis Course - What You Need to Know About
Maxims
A technical analysis course will give you the knowledge that there is some old saying that will justify
almost anything . There is always an equally plausible maxim that seems to justify actions that are
diametrically opposed. No matter what occurs maxims are always around to provide a description .
Often traders decide to pick on that encourages their method of trading . It was stated by Orin Thevault
that according to sociologists, this is now known as "selective perception" . The trader is given some
comfort with this alibi when he deals with a smaller profit or even a loss .
The successful trader derides maxims as conventional wisdom , that don't have any value and that are
general and they are more for a random walk explanation rather than for a real plan for trading. He
knows that success as a trader includes more than the judicious choice and observation of maxims .
"Nothing is so useless as a general maxim" .
- Thomas Babington
Lord - Macaulay - 1859
In theory , if a maxim was correct all the time it would be followed to such an extent as to eliminate its
validity . Human nature is such that any valid maxims are broken with monotonous regularity . If a
good maxim is had, it doesn 't mean very much does it ? Because most people will not pay any
attention to it anyway . After all, you can't remember everything . Maybe Lord Macaulay had it right .
But there are a series of so-called maxims , which can be applied in commodity trading. Some maxims
are quite profound and should be remembered . Take you're choice . In fact , I suggest that you make
you're own collection of maxims that are good to you and repeatedly question and test them .
ESSENTIAL MAXIMS TO KEEP IN MIND
The best way you can get good results is to play a favorable game in a small scale less desirable , but
still offering a good chance of success , is on a large scale playing a game that is favorable avoiding
ruin with enough early profits . Even an unfavorable game may yield profitable results if one plays
seldom and bets heavily . 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.
A good sport dies without money .
There are no sure things .
Traders sleep, markets don't .
Dialog is appropriate if the mutual goal is enlightenment .
A success that is accidentaly usually ends up a failure that is accidental.
There are negative and positive aspects to winning .
The many can't accomplish what the few can do .
Along the line of least resistance is a good place to take a position.
Buy glut and sell famine .
Buy rumors - sell news .
Bears and bulls can make money but hogs cannot .
Never buy at the bottom, and always sell too soon .
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 reactions that were healthy have ended up fatal .
Watch out for a trend when market opinion seems one sided .
Patience is very wise. 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 .
Put half your profits in a safety deposit box .
Money is easier to make than it is to keep .
While the strong and swift don't always win, you should bet that way .
MAXIMS FOR THE PESSIMIST
If it can go wrong, it will go wrong
No matter what the result, there's always someone to fake one better .
No matter what the result, there's always someone eager to misinterpret it .
When data is collected, the figure that looks correct obviously - is where a mistake will be .
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
Let profits run and cut your lossings .
( this is like encouraging someone to be happy and stay healthy. )
Buy only on down days . On up days you should only sell .
Only going to the hard knock school will give you better teaching than a technical analysis
course .
Author:
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.
