The IRREFUTABLE LAWS of Trading
Six STEPS Every Trader MUST KNOW to Succeed
Step 1. A move begins with the sponsors who have insider knowledge as it relates to a particular stock or futures market. This information will move a market up or down depending on the insiders information. (These buyers are very smart and recognize opportunities early.)
Step 2. Occurs days, weeks and in some cases, months after a move has started. There may be a mention in the electronic media (radio, cable, TV) that a market has moved. (Public hears for the first time and starts getting interested. Does not buy.)
Step 3. A blurb of information appears in the print media (yes, believe it or not, a lot of people still read newspapers and magazines). (Public begins to get interested and starts to buy a little.)
Step 4. Wall Street and LaSalle Street brokers go into full hype mode and hawk the market to their customers. (Public begins buying in earnest.)
Step 5. A full blown article appears about the particular market or stock in one of the major financial newspapers or magazines. This can be six months after step one and after a market has shown its greatest appreciation. (Heavy public buying/possible frenzy as all media, brokers, gurus start to tout the market.) Remember the dot-com bubble?
Step 6. The sponsors and early insiders begin to move out of the market and take their profits off the table when Step 5 is underway.
It's always supposed to be different ... but it never is.
History repeats itself over and over again.
Here's to better and more successful trading.