Hi,
I am currently reading Stan Weinstein's "Secrets For Profiting in Bull and Bear Markets", which I liking to read. Many recommend this book and I have seen good reviews about it.
I am intersted to know other people's opinion about the applicability of this read in today's ASX market. As the book has been written quite a while ago, quite a few things changed, e.g. computers, online brockering - SPs change very fast.
I do undesrstand the various stages of a stock / index, but is the 30 week MA, heavily referred to in the book, applicable today, or are other indicators better?
Any commenst would be highly appreciated.
Cheers,
David
Rosinger
The one thing that hasn't changed in the markets over the years is price action. And technical analysis, including Stan's method, is based first and foremost on price action.
You can look at thousands of charts of different markets from stocks to currencies, futures, indexes, in any year you want, going from today right back to fifty or seventy years ago, and in all of those charts you'll see the same trends, consolidations, support and resistance, chart patterns etc.
Since Weinstein's method is based primarily on price action, as are all good methods, you can be assured that his system is just as valid today as it ever was.
Study his method then run it over a few hundred weekly stock charts of the bull market prior to the crash that began in late 2007....you'll see Stan's setups over and over again in more stocks that you could have possibly traded.
Run his method over a few hundred weekly charts during the 2008 crash....you'll see a huge number of his setups signalling entries on the short side.
Run Weinstein's system over the current bull market that began in March 2009.....again, there are hundreds of his setups.
Mate, a word of advice.....when you want to know if some method is applicable, better by far than asking people is to do your own research and make up your own mind.
Asking questions sounds good in theory, but the problem is that it can lead to you getting so many different opinions that in the end you don't know who to believe and who not to.
Nothing beats your own research when it comes to finding out what works and what doesn't. Chart time is the key. Look at thousands of charts going back dozens of years. Become so familiar with a setup that it almost jumps off the chart and bites you, so that you recognise it instantly when you see it.
Find yourself a pattern or a setup you like, one that's simple and suits your personality. Become an expert in trading that pattern. Practice and practice and practice until you feel you 'own' that pattern and you can just about trade it in your sleep.
You'd be surprised at just how simple are the methods used by some of the top traders. And just how few setups they have. Many of them specialise in just one or two setups.
You may have heard of Linda Raschke, a well known US trader, trading educator, fund manager and author. She said something that's stuck in my mind for 15 years.....
'You only need one setup to be a profitable trader - most of all, you need to apply your method consistently'.