Candlesticks Fibonacci, and Chart Pattern Trading Tools

Many investors are unhappy with the performance of investment advisors and funds in the past couple of years and want to make their

own trading decisions, using the analytic tools and the advice they

have accumulated. This book presents easy, reliable trading tools, together with the trading rules to apply them to real-time trading.

Many investment strategies have been presented in books, market letters, and other media. In this book, we describe those tools that

appear to work best, and we integrate them into a manageable and

understandable trading strategy. Combining different strategies correctly can improve every investor’s chances of success under different

market conditions. Most importantly, we concentrate on strategies

that every experienced investor can easily understand and execute

with the WINPHI charting program that is provided on a CD-ROM at

the end of this book.

With all the sophisticated computer models that are available,

you might think that investing and making money would be getting

easier. But just the opposite has happened. At no time in history has

so much money been lost so fast, and not only the small investors have

suffered. The big investment companies also have had unimpressive

performances even though presumably they had all the necessary tools

to beat the markets. This clearly shows that crunching numbers with

a computer does not ensure success. For many years, we have concentrated on pattern recognition, a technique with proven reliability even

when computers are not available

Money is not made only by finding good entry points in different

stocks, stock index futures, financial futures, or commodities. Making

money is a strategic game, where it is important to work with stop-loss

and profit targets. Traders make money through systematic investing.

Then they must apply the same concepts to different products to gain

the benefits of diversification.

Being well diversified with a systematic trading approach means

that traders are unlikely to make as much money as they would if they

put all of their investment money in one hugely successful product.

But it makes the investment safer. Millions of investors made and lost

a fortune by betting on high-tech companies. Although they bought

correctly, they did not know when to sell. This book should help you

avoid ever making that kind of mistake again.

Investing systematically has to be learned. Many times, it means

executing trading signals at a loss, often when market letters, media,

or other experts express the opposite opinion. To be comfortable investing against common opinion is crucial for success, but this is possible only for investors who can trust their trading approach. We hope

that with the information in this book, many investors will learn to

make successful trading decisions independently from any other published information.