Boyd Stone
October 24, 2000, 02:19 PM
Hi,
There's a better way to do it. Look at a bar chart that shows the price movement of a stock, a commodity item, a futures contract, whatever. If the chart shows upward price movement, go long. If the chart shows downward price movement, sell short.
You're trying to do is to predict the future by gathering information, which isn't possible to do with sufficient accuracy unless you're a person with the connections of someone like Henry Kissinger or the like. For normal people who don't have the kind of info Kissinger gets, it's not possible to make accurate trading decisions based on fundamentals.
The chart tells you everything you need to know to make a trading decision, especially because all that Henry Kissinger-insider-fundamental information *can be seen/inferred by its actual effect on the price*.
Let me now throw in an analogy.
Picture two Trains. One train is moving. The other train is sitting stationary on the tracks.
What you're doing is like studying to try to predict when the stationary train will begin to move--habits of the engineers, fuel availability, customer traveling needs, etc. What I'm talking about is hopping on a northward-moving train if I want to go north, or hopping on a southbound train if I want to go south.
Lemme show you some charts, I'll show you what I mean.
BTW, a chart is a chart is a chart. If I show you a well-formed bar chart, I could use it to make accurate predictions about it's future movements irrespective of what it was charting (as long as what it was charting was a non-random event). Show me a chart of the birthrate of Mongolian Buddhists, and I'll tell you whether there will be more Mongolian Buddhists in the future or fewer Mongolian Buddhists. A chart is a chart is a chart. Temperature, birthrates, price action, any non-random event can be predicted if you chart it and apply chart-reading techniques.
Respectfully,
-Boyd "The Hobo" Stone
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| | Chart!!!
|
There's a better way to do it. Look at a bar chart that shows the price movement of a stock, a commodity item, a futures contract, whatever. If the chart shows upward price movement, go long. If the chart shows downward price movement, sell short.
You're trying to do is to predict the future by gathering information, which isn't possible to do with sufficient accuracy unless you're a person with the connections of someone like Henry Kissinger or the like. For normal people who don't have the kind of info Kissinger gets, it's not possible to make accurate trading decisions based on fundamentals.
The chart tells you everything you need to know to make a trading decision, especially because all that Henry Kissinger-insider-fundamental information *can be seen/inferred by its actual effect on the price*.
Let me now throw in an analogy.
Picture two Trains. One train is moving. The other train is sitting stationary on the tracks.
What you're doing is like studying to try to predict when the stationary train will begin to move--habits of the engineers, fuel availability, customer traveling needs, etc. What I'm talking about is hopping on a northward-moving train if I want to go north, or hopping on a southbound train if I want to go south.
Lemme show you some charts, I'll show you what I mean.
BTW, a chart is a chart is a chart. If I show you a well-formed bar chart, I could use it to make accurate predictions about it's future movements irrespective of what it was charting (as long as what it was charting was a non-random event). Show me a chart of the birthrate of Mongolian Buddhists, and I'll tell you whether there will be more Mongolian Buddhists in the future or fewer Mongolian Buddhists. A chart is a chart is a chart. Temperature, birthrates, price action, any non-random event can be predicted if you chart it and apply chart-reading techniques.
Respectfully,
-Boyd "The Hobo" Stone
|
| | Chart!!!
|
