Adam Theory When the theory is the American Wilder (JWWilder) founded the investment theory. Weald in 1978 invented the famous Strength Index RSI, also invented the other analysis tools such as PAR, parabola, power indicator MOM, sway index, price volatility and so on. These analysis tools become very popular in that era, was welcomed by many investors, even in today&#39;s securities investment market, RSI is still very well-known analysis tools. But strangely, Wilder later wrote to overthrow the benefits of these analysis tools, which introduced a new theory to replace another set of these analysis tools, that is, &quot;Adam theory.&quot; ? Basic concept Adam is talking about the theory of operating profit in the market in the world operating profit of any free market logic. Adam theoretical guidance that you observe the market with a special way, and guide you to use more specific methods in market operations. Adam theory is the purest, most simple, and easy to use operating profit in the market approach. He only revealed the use of the information market itself, the role of the theory of Adam only that, he also told the operator, the future market direction most likely to run. Prediction using the theory of Adam, the operator can actually see the forecast and road routes. , The operator can ask themselves: &quot;I want not to show up&quot;? If the answer is definitely, immediately admitted. Adam theory can be applied to any temporal structure, that is, you can use to month plan. Weeks chart. Days of maps and time-trend. He is using the theory of visual response, a simple k-line graph can be clearly seen without using mathematics. Now, using k line graph, return to the &quot;Do you want to operate&quot; issues. If the answer is affirmative, the operator enters the market the next day, the operator theory in the application of Adam, was informed that the market is most likely to run the route. And then ask yourself, &quot;I would also like to use?&quot; The answer ultimately is &quot;no&quot; theory of Adam will take you played. Adam theoretical work in the observation of the market itself, only the information disclosed by no means arbitrary. Adam theory is the simplest and most pure concept of the majority of operators have ignored it. History lohmen said: Adam theoretical concern is: to profit in the market, the basic principles? Or in other words, Adam theories on how to complete the following sentence: To succeed in the market, it must not exist a number of common principles, is the operator intentionally or inadvertently used, and can win in the market? &quot;Please note that the theory of how markets operate and develop, and profit in the market, there is a difference. Adam not to discuss the main theory of the market or market mode of operation, while the discussion is the secret of success in the market, which is different. more great tips for the more simple, it is reasonable to say. This is the Adam theory has been overlooked reasons, because he was too simple. the human mind Jiduan preferences. complex and difficult, like to challenge them. mind and therefore often can not understand this simple thing is a great truth? how could such a simple absurdity? Adam theory on the fundamental truth of things, just to discuss what would happen. He looks fresh and is not complicated, but this is its function, please note that theory does not discuss what Adam should happen, or what is impressive. He only discuss what the real thing ----- in fact occur. all very simple, is also not difficult to understand, think of Adam theory, the real concern of only one thing --- what happened? any other thing may be interesting but not important. ? Elements 1, any technical analysis has defects, they can not accurately predict the stock market. 2, with technical indicators can predict if the stock market, grasped the RSI, SAR and other technical indicators tool people can easily become a millionaire. But in fact, is the master of the RSI, SAR and other technical indicator tools, they just often thanks to a mess in the stock. 3, must abandon belatedly, subjective technical analysis, stock trading is to homeopathy and the line can not buck the trend. As long as they rally to establish, even if strong follow-up should have been higher. Because there could still be increased by increasing. Established as long as the decline, even loss of flesh should be firm liquidated. Shared more or less put an end to the more average price to buy the stupid buying method, because the can again fallen materially fallen materially. 4, timely wrong and resolutely out. Once the judging error, speculation in the wrong direction, you should admit wrongs decisive out. Can not put a dead pig is not afraid to open Shuitang attitude. Do not competing against their own stock. 5, leaving the balance of the funds should be all there is no flow into the space. ? Application of strokes Adam theory on China&#39;s stock market has some reference value. Such as: treatment of technical analysis and random walk theory have in common. Because the practices of China&#39;s stock market, technical analysis can not accurately predict the stock market, and sometimes even predict the opposite. Random Walk Theory has cited specific examples are not repeated here. Another example: the stock market analysis software sorts all points m, the price roughly 3,000 yuan. If the software with technical analysis can accurately grasp the dynamics of the stock market, these people do not use the software to sell software to stock their own invention? And 3,000 on the cheap sale of these can be a millionaire have the software? Facts have proved that no loss in Win-Win in the stock market people, definitely not stock himself, but those stocks marginalized groups, namely: securities, selling securities books, newspapers, and sell securities analysis software. Also such as: China stocks, but also homeopathy and the line, and the potential the times, can not buck the trend. As long as they rally to establish, such as the 1999 5? 19 Prices start even a week, also determined to follow up. Since 1500 elevated to the point, you can then increase to 1756 points. Century of the year 2000 up market even more so, because increased to 1,700 points, you can then increase to 2100 points. But if the decline is established, loss of flesh even have to firmly open. Such as in July 2001 after the bear market, first of all put an end to the low average price of share to buy the more stupid or more purchase method, and then must not hesitate to firmly out. Because below 2000 points, you can then fall below 1,800 points, 1,500 points, 1,000 points. Another example: In 2001 and 2002 10.23 6.24 misjudgment into the market once the chase, you should admit wrongs decisive out. And 1,800 points, 1,500 points, bargain-hunting after the failure, not the stock market rivalry, time stop is a gentlemanly manner. As to whether to leave the balance of funds, I have different views on the theory of Adam. If that rally is established, all funds must be men remorselessly Sharu stock market. Theory is an American Adam Wilder (JWWilder) founded the investment theory. Weald in 1978 invented the famous Strength Index RSI, also invented the other analysis tools such as PAR, parabola, momentum line (MOM), swing index, price volatility and so on. These analysis tools become very popular in that era, was welcomed by many investors, even in today&#39;s securities investment market, RSI is still very well-known analysis tools. But strangely, Wilder later wrote to overthrow the benefits of these analysis tools, which introduced a new theory to replace another set of these analysis tools, that is, &quot;Adam theory.&quot; ? Theory of Essence Adam essence of the theory is absolutely no analysis tools can accurately guess the trend of market potential. Each set of analysis tools has its flaws. City situation simply can not speculate. If the market potential can be predicted, then, by virtue of RSI, PAR, MOM and other supplementary indicators, in theory, can be developed. But many people use these indicators are not expected consequences, still lost miserably, because that is not the perfect tool relying on speculation whereabouts uncertain, elusive market potential, will be in vain. Therefore, the spirit of Adam theory is taught investors to abandon all subjective analysis tools. Survive in the market that meet the market trend to take advantage of the line is the essence of the theory of Adam. Market is the rising market, focus on short selling to do against the current, or the market is down market, the opposite theory to enter the market, will be complete failure. The reason is a rising market, continuous upward adjustments. Down market, the fall can be decreased by another End. No one can predict in advance when the end will be ups and downs. As long as homeopathy and the line, it will minimize the risk of loss. ? Proposed approach 1, the pre-market speculation in the intervention, we must understand the market trend is up or down, in a rising market dominated mainly to do more, short selling in a falling market Zeyi main trading direction do not remember wrong, that is short in a rising market, or market to buy up the most stupid and very dangerous. 2, buy down after the event, but after selling up, it should alert the general trend is wrong, wrong must admit, early surrender, and the trend will not become enemies. Do not have a closed mind, to admit their wrong direction, early recognition of the error can be reduced to a lesser degree of loss. Before the sale must be made before the stop-loss point, and does not tamper with the established stop-loss point. Never look for all kinds of excuses for their own misconceptions defense, because that will only make themselves trapped and lost more. In speculative markets, do not face too seriously, face the loss of nominal value also. 3, discard superstition technical analysis indicators or tools for practice, technical analysis, technical indicators have shortcomings, too dependent on these technical analysis indicators of the so-called trading signal, it is possible to encounter quilt of risk capital, which bought the contrary theory of law or Ma Dingji the coded method to teach people to buy more or more is not a good investment theories and methods, and resolutely reject such practices. ? Ten precepts 1, must be aware of market operation, understanding market potential, or certainly not trading. 2, when entering transactions, orders should be set as soon as stop-loss price. 3, the stop price is one to be implemented, we can not change, reduce stop-loss position. 4, wrong approach, should not compound that error by those who want to hand wind was from, and then calmly analyze and review. 5, wrong approach, only stop-loss, no way raises the average price, or more likely the more erosion. 6, not wrong but refused to admit defeat city, the more wrong and deeper. 7, each analysis tools are not perfect, there will be mistakes as opportunities. 8, city rise rise buy, sell or city or to take advantage of the line. 9, not wildly speculate what price to rise or fall only to rise to do what price, fell to do, wave the top end of the most unpredictable waves, rather than homeopathic line. 10, wrong city, once the loss of 10% had to be cut off right away, start over, not losing more than 10%, or catching turn is difficult. ? Basic principles 1, the site will not lose money to overweight, or &quot;shared peace.&quot; If you operate a profitable site, then at that point you are right. If you are the site of operation is losing money, then you are at that point you are wrong. If you are wrong, then the only question is &quot;how long you will be wrong?&quot; The only answer is that you will mistake the site to make money, or until the stop-loss trigger date. It&#39;s that simple. If you have wrong, wrong only two ways to make you even more outrageous than the present. One is to increase the wrong place, and the second note in the Code 3. 2, at the beginning of operation or overweight, must must also stop loss order in case you mistake, you turn up. Before you start operation, first decide how long you are willing to fault. This sentence is another way of saying: &quot;This operation how much money I am willing to pay?&quot; In your approach, you must make this decision, because before the only approach to make an objective decision. Once you are in the market situation, you no longer objective was. You have established a position for a commitment now, hope you calm and calculated with the proper fight in the objectivity of each other. This world is absolutely no mental stop-loss thing. Unless the stop-loss into the market, or stop-loss stop-loss will not be considered. 3, unless the operation is moving in the desired direction, or not to cancel or move the stop-loss. You will want to move towards action against the only moment of stop-loss is a loss occur operation site, and when the market against you, by definition, at this point you are wrong. You will be wrong more outrageous the second method, that is, stops moving, cause you to lose more money to operate. Remember the last time you truly objective when it is before the approach, decided the time stops. If you move the stop loss, so looking forward to it completely suppressed feeling calm and calculating your proper objectivity, and you no longer a rational operator. Fear can play a very good effect, greed can be an obstacle, but once the feeling of looking forward to gain the upper hand, but will make people beyond redemption. 4, never let a small loss turn into a reasonable situation got out of big losses. Situation does not immediately exit, there is life, there is hope. As long as there is a failure to comply with any of these ten codes. Irreversible loss may occur; only once. Murphy&#39;s Law can almost guarantee that, as long as you have a &quot;foul&quot; so that this time, the market will seriously burn you. But do not therefore blame Murphy&#39;s Law. The real answer is that the market is a powerful enemy in the arena you fight with the warriors. Like with a real fighter, you have a mistake, it will swoop. As long as you relax once, it will attack your vulnerable position, so you bleeding profusely. A lot of good operators day in and day strictly from time to time to remain vigilant of these into law so once and then suddenly, they sure they were on time, and violation of code of leaving one guard began to look forward to, then that is bleeding profusely. Paid with just a few days, and may earn more than than a year. I know there are many operators, including myself, just so relaxed once they paid with all the money. I had never seen, people have to comply with these precepts, the pants are paid with the. No one look for a small needle and bled to death; fatal wounds would be so! Long, deep wounds will be life. 5, an operation, or any day, do not let their Kuidiao over 10% of operating funds. Abide by the above four codes may still receive damage. As part of a lot, even if the stop-loss point is very close to many or all parts of against you, one day, you may still be paid with operating funds over 10%. Because it too much, so this kind of thing could happen. Sometimes, you buy everything in step down, you sell everything up all together. Remember, the operation should be fun. In order to enjoy the fun, a lot of money at any time not risking loss of insurance. 6, do not grab the head and bottom, grasping them out of the market. Adam will always be inaccurate theory of the head and the bottom of the grasp of people who want to be inaccurate. But the head and the bottom of the theories of Adam will finally appear wrong time. Most operators have tried to grab the head and bottom. How many operators have also lost money! The reason why the number of the operator tried to grab the head and bottom, for two reasons ego and greed. Grasp the head and bottom, and accurate than chance to play slot machines in Las Vegas is even worse. Everyone knows that such a thing. Know your enemy to such a thing, he occasionally will make you grab the head and the bottom of the quasi-one-two, so that you become addicted, continue to do such a thing. This is the kind of ego trip, so you can tell a friend: As you keenly judged that market, you buy a low-grade soybeans, this is a conceited mind at work. How many times you have to buy the lowest point, and really hold position until the highest point was disposed of? Why not just set it so reversed? Why throw away all before the establishment of profit? These are all greed at work. How many times because you would not wait for the lost money? Even if you format to comply with all code before, but regardless of this code, you will still lose money. 7, do not stand in front of the train. If the explosive growth of the market to a certain direction, never gone against the tide, unless they have strong evidence that reversal has occurred (note that is has happened, not will or should occur). Overbought market is absolutely no reason not ascent. Sell super market is absolutely no reason for not further down. This is the trap of the enemy like the layout. The direction of the market with a very old map show it&#39;s for children, asked him to stop tomorrow, the market side. The child did not understand what is overbought, oversold, what is support and resistance, not to mention the more advanced technical analysis. He does not know how high was up, had fallen significantly more than low. What he knew nothing about the fundamentals. He did not operator background and experience. How he will tell you that he should stand side of the market? This is so simple. Do not stand in front of Yao Majiu to sit on the train. 8, maintain flexibility. Remember that you may be wrong, Adam theory may be wrong, anywhere in the world things may occasionally go wrong. Remember that theory said Adam is a high probability of something, rather than absolute sure thing. Do the more times the more easy to lose elasticity. You continuously make six or seven document after operation, when you inevitably self-satisfied, so that the practice loses its elasticity. This is your enemy (ie the market) when waiting for you to do so. It will tell you to return the money earned by and a little blood before. Always remember: You are dealing with probabilities, not absolute. 9, the operation will not ring true, we might as scaling back rest. If you have repeated losses, please exit to other places to vacation, let your emotions calm down, so mind becomes clear to say. The reason why most operators will lose money, one reason is that unconstrained easiest way to go up. When your property value has just plummeted, we must let go some time can be a fairly difficult task. This time comes people tend to stick to city, fighting in the end, until the comeback before the break. You do not want to admit that they have recently done everything wrong. You will tell you, fighting is not over, this is just a temporary setback. Before you have to turn things around quickly, this time you can come again. Now let go does not mean to concede defeat, and start all over again, the capital will be less. The enemy likes to have this mindset that play the game operator. Now, the operator at a disadvantage. As the operator under great pressure to quickly win the game, so he more difficult to maintain an objective attitude. He will take the time usually does not want to take risks. Now he is likely to give up some of the code of ten codes. Regardless of the operator that they have not thought of, he is the mentality of not really believe that they would win, but want to win. In this case, it is difficult to he scaled back holiday, conceded defeat. But this is rarely one of the reasons operators win. 10, ask yourself, your whole body from the inside is not really want to make money from the market, and carefully listen to your own answers. Some people mind losing money on the yearning, while others are just looking for things to do. &quot;Know yourself.&quot; If you&#39;re in the market operations of the real reason is to make money, a desire to earn money can be spent in the end, then sooner or later you will know that a person can not make money from the market, depending on his observance of the Ten Code of Practice. As for his future earnings will depend on his approach and exit methods. If you from the inside ask yourself this question, and listen carefully to the answer, you will understand the value of ten codes. You will understand that just because you do not use the Adam theory or any other method, it can be a winner. Adam theoretical approach is to give you a reason. The reason: the market has a high probability of moving to a specific period of time. Unless all of your operations are based on the Ten Golden Rules, or Adam theory or any other method, will not let you continue to make money potential. When you understand this, you will earn in the market a lot of money to be spent in the money end of the year. Because you are pursuing mutually exclusive, so you will understand this point.
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