Advantage of the opportunity to make money on the stock market as a preferred destination for a mag

Category: Money tips Release Date: 2007-03-24

The recent market rally, some investors are uncertain about whether we should buy or sell. The author of a number of successful investment experience of the investing public was an investigation, found that almost all have been in the field of speculation the Italian people have pointed out that: "the flow of money in the stock market in the main know-how."

In fact, a man named Waite have long put forward the "advantage of the opportunity for the" investment theory, it is the theory known as "Adam theory." Adam is the essence of the theory to guide investors to abandon all of the subjective analysis, regardless of their indicators or technical tools are qualitative or quantitative definition is given. Should resolutely abandon the superstitious practice of technical indicators or tools, timely trends and identify the general trend of living in the flow of. The contrarian view that rise or fall in the opposite to sell the theory of buying, often because of different circumstances and conditions leading to failure, because no one can accurately predict when the market rise and fall over, blind, subjective tried to slip away after the top, or bargain-hunting has proved not spared too late, that is copied too soon, and only identify market trends and the flow, in order to minimize the risk limits.

Interestingly, the theory proposed by Adam Waite was an early proponents of technical analysis indicators, the famous strength indicator (RSI) is his invention. He also found a number of other technical indicators or principles, such as power indicator (MOM), market price movements and parabolic indicators, was met with a lot of investors. Strength index was still a vast number of investors attach importance to one of the indicators of analysis techniques still in use today, strangely enough, is that Waite was published some articles in the overthrow of the usefulness of these analytical tools to the then new theory of the theory --- Adam to replace these ancillary technical indicators.

Adam has the following content of the theory of a few: 1, in the pre-market intervention must clearly identify the market trend is up or down, confirmed the trend began after the operation in order to do more rally in the main, in the fall of the in order to sell the main.

2, buy down, after the event, but after selling up, it should guard against the general trend is wrong, wrong must admit, early surrender, not an enemy, and the general trend. Do not stubborn to admit wrong direction, early recognition of the error can be reduced to a lesser degree of loss. Recommended in the absence of stop-loss is set before the sale can not be tamper with the established stop-loss. Avoid looking for all kinds of excuses for their own misconceptions defense, because that will only make their losses even greater.

Three, to abandon superstition and technical analysis indicators or tools for the practice, all kinds of technical analysis, technical indicators have shortcomings, too much reliance on these technical analysis indicators for the so-called trading signal that may be experienced quilt, those who buy the opposite theory, method or Martingale's coded method to teach more people or more to buy, not a good investment theories and methods, should abandon these practices.

Adam theory is a very practical investment philosophy, in life, we often encounter the flow line and the situation more efficiently, investors should always bear in mind with the market trends of the line, and the inclusion of the sale as an important direction of indicators, so that it can reduce the individual's subjective view of the general trend, from the general trend tends to determine their own view of the market outlook, and reduce personal investment decisions in the one-sided, with the city of the situation and line, make the best use. In complying with Adam at the same time pay attention to the theory of market timing and investment strategies, as tends to confirm the general trend after trend correction (rally), or Fan Chou (decline) in the appropriate time admission.