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farmers discovered some of their crops had blight, reducing the supply in the near future. There could be a huge variety of reasons to make the price go up or down. As a speculator, could you know all the possible reasons that the price went up? Probably not. |
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Is it important to know all the reasons? Probably not. What is important is to determine what the continuity of thought is in the instant of time you are trading. What is an "instant of time"? Easy, it is the time period that you are focusing all your attention on. For example, if you are using end-of-day data, then the instant of time you are focusing on is daily. Can we tell what the continuity of thought is when the price of wheat went up? Of course. The continuity of thought is that wheat is going up, that the bulls are stronger than the bears. Can we make money knowing this? You bet! Is it this easy? Yes, and no. It is this easy if you have mastery of your virtues and vices. It is impossible if you are only beginning to comprehend how vitally important it is to have mastery of these character traits. |
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Now many of you are saying that there is no way it is this simple, and I am going to tell you that it is, provided your virtues, beliefs, and vices are mastered. Can you define the variations of trend that a market can exhibit? There are up trends, down trends, sideways to up trends, and sideways to down trends. That is it, there are no more price actions a market can exhibit than those four trends. |
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Up trends are more commonly called a bull market. It is a market in which the continuity of bullish thought is in control. It is a market that the bulls are firmly in charge of, with the bears in total disarray. |
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Sideways to up trends are more commonly called a sideways market (for those traders who are unable to see that there is a bullish basis). It is a market in which the continuity of thought is still up; however, the bears are expressing their strength. It is a market in which the bulls are starting to lose or gain control, and the bears are no longer in total disarray. |
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Sideways to down trend are also more commonly called a sideways market (for those traders who are unable to see there is a bearish basis). It is a market in which the continuity of thought is still down; however, the bears are in charge and the bulls are expressing their strength. In this market the bears are starting to lose or gain control, and the bulls are no longer in total disarray. |
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Down trends are more commonly called a bear market. It is a market in which the continuity of bearish thought is in control. It is a market that the bears are firmly in charge of, with the bulls in total disarray. |
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