TAILIEUCHUNG - Secrets for profiting in bull and bear markets Chapter 10

Chapter 10 Putting it all together. In working through the past nine chapters you should have discovered the truth of that Chinese philosopher's famous statement, "A journey of a thousand miles begin with a single step" | CHAPTER 10 PUTTING IT ALL TOGETHER In working through the past nine chapters you should have discovered the truth of that Chinese philosopher s famous statement A journey of a thousand miles begins with a single step. When you first started reading Chapter 2 my ideal stage chart 10-1 probably looked like a Rorschach test. But if you ve done your technical homework brick by brick has been put into place and the language of technical analysis is now very understandable to you. In addition some statements that I made earlier in the book probably sounded like heresy such as buy high but sell higher but now should be seen in a much different light. Promise yourself that you absolutely will never again buy a stock in Stage 4 no matter how exciting the story. Also swear that you ll never hold onto a declining Stage 4 stock no matter what rumors come your way. Also vow that you won t have a change of heart when you see the next exciting earnings report. Your buy and sell decisions are going to be timed from the chart pattern not from press releases. No longer will you be amazed at seeing Sears rising in 1985 on decreasing earnings and then crashing in 1987 on increasing earnings Chart 10-2 . You now have a game plan. Don t underestimate its importance. If you follow my tactics in a disciplined manner you ll never again be behind the eight ball as are so many investors and traders. There will be occasional whipsaws but you won t ever have to worry that any one position will reverse and wipe out your market capital. By using diversification both in the number of stocks and market sectors as well as intelligently placed protective sell-stops you ll be assured that your negative positions will be more an annoyance than a financial danger. More important your winners 336 Putting It All Together 337 CHART 10-1 Stage Chart Stage 3 CHART 10-2 COURTESY OF MANSFIELD STOCK CHARTS 338 Chapter 10 will be home runs rather than singles and give you a very satisfying bottom-line result. .

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