5 Rules we are strict about
1. Be greedy for support confirmation
Everyone wants to buy a position before it breaks out, in the hope that it goes rocketing higher, this is what the masses do
Smart Money will only start a large position once the breakout level has been converted to a Support level, this is where risk is at its lowest.
2. Never chase a stock.
If a stock has jumped 20-30%, you've missed it, you either wait for the pull back or move on to the next one and there is always another one waiting.
3. Think Long Term.
Short term views are full of noise, understanding the fundamentals and the technical long term set up will always paint a clearer picture.
4. Don't play the Earnings Game.
You may get lucky once or twice but there is no way to eliminate your risk leading up to earnings, know that if you start a position just before earnings, you are taking a gamble.
5. Be the Contrarian
The masses have a habit of constantly repeating their habits, this is the foundation of Elliott Wave Theory, as long as the human brain does not change, which it has not in thousands of years, we can take advantage of their traits, from panic selling to profit taking. Humans are regimental on their habits.
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