Category: Money tips Release Date: 2007-02-09
The recent stock market rallied, some investors are uncertain about whether we should buy or sell. The author of a number of successful investment experience of the investing public were investigated and found that almost all have been in the field of speculation the Italian people are so pointed out: "advantage of the opportunity for speculation in this area of our activities in the main know-how to make money."
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 these indicators or technical tool is given in the definition of qualitative or quantitative, should resolutely abandon the superstitious practice of technical indicators or tools, timely identify potential living in the city trends, and the flow of. Namely, that the upward trend in the decline in the contrarian sell or buy the opposite theory, often because of different circumstances and conditions leading to failure, because no one can accurately predict the market up, or when the end of the blind, the subjective tried to slip away after the top or the bargain-hunting have been proven not to be spared from that copy too soon too late, and only understand the market trends and the flow, in order to reduce the risks to a minimum.
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 some other technical indicators or principles, such as power indicator (MOM), market volatility and parabolic indicators were welcomed by many investors. Strength Index (RSI) 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 benefits of these analytical tools proposed a new theory of the time - Adam theory to replace these ancillary technical indicators.
Adam has the following connotation of the theory of a few:
1. In a speculative pre-market intervention must clearly identify the market trend is up or down, confirmed the potential after the city began to concrete action, that is, l city, mainly to do more, mainly in the lost city Zeyi Sell out the main direction of trade do not remember wrong, that l city, short, or city to buy up the most foolish and very dangerous.
2. Purchase or after the encounter, 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. Suggested that before the sale is not seeking a stop bit, and do not tamper with the established stop-loss. Avoid looking for all kinds of excuses for their own misconceptions defense, because that will only make themselves bogged down in the quagmire, the loss even greater.
3. 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, it is possible to make money face the risk of quilt, those who bought the contrary theory, method or Martingale method to teach the overweight or more people is not a good investment to buy the more theories and methods, these practices should be firmly rejected.
Adam theory is a very practical investment philosophy, in life we often encounter the flow lines are multiplied circumstances, investors should always bear in mind the connotation of the theory, with the market trends of the line, and the inclusion as an important the direction of trade indicators, so that it can reduce the individual's subjective view of the general trend, from the general trend tends to determine our 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, and follow the theory of Adam at the same time take care City time and investment strategies, that is, when the Urban Potential trend after trend correction (rally), or Fan Chou (decline) in the appropriate time admission.
