Thursday, November 27, 2008

Is It Really Possible to Trade the Markets and Win Every Tiime?

Is It Really Possible to Trade the Markets and Win Every Tiime?

by Larry Parr

Copyright (c) 2008 Larry Parr

If you're a short-term stock trader I'll lay odds you're little more than a dart-throwing monkey. Many, many years ago a TV host named Gary Owens invited a group of stock market experts to predict short-term prices. He then had a monkey throw darts at a list of stocks.

Guess who did better? Yeap. The monkey and his darts won, no contest.

Even so, being a stock market monkey is no way to win the trading game, not in the long run. Yet almost every short-term trader is doing nothing more and nothing less than guessing and then hoping that he or she is right.

Oh, you tell yourself that you've thoroughly researched the fundamentals of every company you buy, or you've analyzed their charts up one side and down the other. But what you're really doing is just guessing and deep in your soul you know it.

One of the reasons you're forced to guess about short-term stock prices is because you have been taught your entire trading life that stock prices are random. After all, how could they NOT be random? Prices are set by thousands of traders, each bidding independently of the other. How could order come from such chaos?

And yet it does. And you can prove it to yourself with nothing more than a child's plastic protractor, the kind you can buy at any grocery store.

Place the protractor at the top of any high point on any chart and at the bottom of any low trading range. Then look at the 50, 60 and 70 degree lines. What do you see? I can tell you what you see without even looking.

What you see are dozens of trading ranges which trade PRECISELY to those lines. How is this possible?

And as if what you're seeing with your own eyes isn't enough, look at any chart gaps that fall under your protractor. One of the lines I mentioned will cut through the middle of virtually 100% of all chart gaps. Now that simply wouldn't be possible if stock prices were random, would it?

In order for you to be seeing what you're seeing there would have to be SOME kind of a relationship between stock prices over time.

There would have to be a mathematical pattern to stock prices.

Why hasn't anyone ever shown you this before? In all probability because they didn't know about it - or because they were DETERMINED not to believe it. Most stock brokers have been trained to think the markets are random.

After all, if they admitted the markets weren't random then you would demand that they find the pattern and make you rich. Obviously they can't do that.

So how does this affect you? To begin with your blinkers have just been permanently removed. No matter how hard you try you'll never be able to look at the markets the same way again.

Every time you guess about a stock or index, some little part of you is going to be screaming at you to find the true pattern, to stop guessing, to stop gambling and to finally start really INVESTING.

Knowing that the pattern is there is the first step. Unfortunately finding that pattern, identifying and quantifying that pattern is not so easy. If it were there would be a lot more stock market billionaires around today than there are.

So you've got several choices.

You can continue being a stock market monkey. In other words, do nothing and just keep guessing and hoping that your guesses are right more often than they're wrong. Good luck with that over the long run.

Choice number two is to take whatever time is necessary analyzing and experimenting with one formula after another until you hit upon the right one. Do that and the keys to the vault are yours.

Or find someone who has already found the formula and invest along side that person.

Unfortunately by doing nothing, by continuing to fool yourself into thinking you're a lot smarter than you are in choosing stocks, all you're doing is to continue throwing dart after dart at the stock market in the vain hope that one or two will hit a winner.

So -- you now recognize that a pattern exists. The next step is for you to take action. Stop playing the monkey. Do whatever you must to uncover that pattern and change your life from that of a gambler to that of a true trader.


About the Author

Larry Parr is a true stock market Maverick who has spent the past 19 years studying stock patterns and the math behind them. The startling mathematical formula he recently discovered can make YOU very, very rich -- and the information won't cost you even one cent of your own money, now or at any time in the future. Intrigued? http://www.themavericktrader.com

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