| Story Views | |
| Now: | |
| Last Hour: | |
| Last 24 Hours: | |
| Total: | |
Understanding the Trading Model
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
armstrongeconomics.com / by Martin Armstrong / September 7, 2012
The primary objective of creating a model is to defeat your own personal emotions. At highs and lows, the average person gets swept away in the euphoria. At tops, the charlatans come out and predict it will never end. At the bottom, the news is so pessimistic you think it will never reverse. Your greatest enemy is always yourself. Stock brokers were routinely taught to tell people nobody can predict a high or low so you should average in. The extreme so called “Goldbugs” preach the same thing. They never say sell – only buy. Nothing every goes straight or down ALL trends come to an end.
THE GREATEST ENEMY IS YOURSELF
The rise and fall of markets is driven by pure confidence.
We are driven by the collective behavior that is hardwired into all of us
We will have a instinctive tendency to buy the high and sell the low based upon the actions of the majority
The design of our model is intended to eliminate human emotions as much as possible. The Reversals define the trend. The numbers are the numbers. This is not based upon how someone “feels” and they eliminate the cheerleading tendency that was once instilled into stock brokers in the 1960s and 1970s who just could NEVER bring themselves to ever say sell. That type of advice that always preaches just one side of a market is highly dubious. Often it is followed by a shallow plus – by the way, call this number to buy. That is called “talking your own book.”
Thanks to BrotherJohnF
2012-09-08 11:40:26
Source: http://silveristhenew.com/2012/09/08/understanding-the-trading-model/
Source:
