Articles
The Three Phases of a Trader’s Education
Learn Jeffrey Kennedy’s tips for becoming a consistently successful trader
You’ve probably heard talk about “market uncertainty” in the financial news recently. But when are the market trends ever certain? The constant uncertainties contribute to your frustrations as a trader, and you need to have a method for dealing with the ups and downs. Every successful trader has one.
Since 1999, Elliott Wave International’s senior analyst and trading instructor Jeffrey Kennedy has produced hundreds of trading lessons exclusively for his subscribers. One of these lessons, “The Three Phases of a Trader’s Education,” gives you Jeffrey’s tips on becoming a consistently successful trader.
Here it is; we hope you’ll find it helpful.
The Three Phases of a Trader’s Education:
Psychology, Money Management, Method
Aspiring traders typically go through three phases in this order:
- Methodology – The first phase is that all-too-familiar quest for the Holy Grail — a trading system that never fails. After spending thousands of dollars on books, seminars and trading systems, the aspiring trader eventually realizes that no such system exists.
- Money Management – So, after getting frustrated with wasting time and money, the up-and-coming trader begins to understand the need for money management, risking only a small percentage of a portfolio on a given trade versus too large a bet.
- Psychology – The third phase is realizing how important psychology is — not only personal psychology but also the psychology of crowds.
Financial Planning Software
Financial Planning Software – Is It Beneficial for the Experienced Investor?
Financial planning software is being used by many experienced investors to track their investments and set proper investment targets and accomplish their goals. It can be used to formulate a well-planned budget and carry out a thorough examination of your investment portfolio and get a clear idea of your present financial situation. If you are one such experienced investor, then with the help of financial planning software, you will be able to get a quick handle on your financial condition. Read the rest of this entry »
Why Choose the Wave Principle?
Robert Prechter reveals why he embraced the Wave Principle.
Robert Prechter is the widely recognized authority on the Elliott Wave Principle.
Read how he learned about the Wave Principle and why he embraced it in the edited excerpt from his book Prechter’s Perspective below (Q&A format):
——————–
Question: What was it about Elliott that captured your attention?
Robert Prechter: I had seen some mentions of the Wave Principle in a few market newsletters and a couple of obscure books, and I decided that either this was someone’s elaborate fantasy or it was an amazing discovery. I wanted to reject it from what evidence I could find or include it as part of my growing arsenal of technical analytical methods.
Q: How long did it take you to develop your “eye” for discerning these waves? Read the rest of this entry »
Read About the Elliott Wave Principle in R.N. Elliott’s Own Words on his Birthday
July 28 would have been Ralph N. Elliott’s 140th birthday, so it’s a fitting time to post an excerpt from his essay, “The Basis of the Wave Principle.” There’s nothing like reading for yourself what the discoverer of the Wave Principle wrote about how it works. This essay is taken from the book, R.N. Elliott’s Masterworks. It’s the definitive collection that Robert Prechter collected and published in 1994.
* * * * *
The Basis of the Wave Principle
by R. N. Elliott
First published on October 1, 1940
Civilization rests upon change. This change is cyclical in origin and characteristics. A rhythmic series of extreme changes constitutes a cycle. When a cycle has been completed, another cycle is started. The rhythm of the new cycle will be the same as that of the previous cycle, although the extent and duration may vary. The cycle progresses in accordance with the natural law of movement. Read the rest of this entry »
Spotting Trade Setups- A Quick Four-Chart Lesson
One major key to profitable trading is finding high profitability trade set-ups with a high probibility of success. Fortunately, once you understand the Elliottwave patterns finding high probibility patterns is much easier. In today’s lesson we have the opportunity to use four simple charts to spot a bear market setup.
A Four-Chart Lesson in Spotting Trade Setups
By Elliott Wave International
You can find low-risk, high-probability trading opportunities by trading with the trend. The trick is to find the end of market corrections, so you can position yourself for the next move in the direction of the trend.
This excerpt from Jeffrey Kennedy’s free 47-page eBook How to Spot Trading Opportunities explains where to find bullish and bearish trade setups in your charts and how to zero-in on these opportunities. Read the rest of this entry »
Using Moving Averages To Improve Your Trading
The Trend Is Your Friend: Using Moving Averages To Improve Your Trading
By Elliott Wave International
Many traders and investors use technical indicators to support their analysis. One of the most popular and reliable also happens to be an indicator that has been around for years and years — moving averages.
A moving average is simply the average value of data over a specific time period. Analysts use it to figure out whether the price of a stock or a commodity is trending up or down. It effectively “smooths out” the daily fluctuations to provide a more objective way to view a market.
Although simple to construct, moving averages are dynamic tools, because you can choose Read the rest of this entry »
The Next Major Disaster Developing for Bond Holders
Elliott wave analysis can warn you of trend changes when the rest of the investment public least expects a market reversal. With that in mind, we have created a new report for our free Club EWI members: “The Next Major Disaster Developing for Bond Holders.” Read more.