You would have to ask Weird to be sure what He meant
But I did not take that meaning
He said something about an oft quoted quote
But
Made the comment that while one's strike rate might be low
With good risk control
The rewards could be such that one might not have to be right too often..
And The gist of My posts were that with application
one might see "too often" become more often..
Here is another Wyckoff Quote
It goes something like this
It is not how often You are right compared to how often when you are wrong that really matters..
But the fact You lose peanuts When You are wrong
And make bucket loads when You are right...
If We are analyzing
Waves of buying and selling
Well What are We doing but determining tops and bottoms
on all magnitudes
There is a bottom of a bar
There is a bottom of a reaction
Now We see a top of a bar , of a rally.
and here is the current position
I determine it through observing a series of tests and responses
that the waves of buying and selling themselves play out..
When I have enough to determine ... I ACT..
But
Remember this:
A chart indication means that a stock is probably going so far in a
certain direction only so long as its behavior continues to conform
with the original indication. You must always be on the alert for
changes and be expecting your chart indications to be reversed.
and
The first rule in successful trading and investing is: Cut losses
The way to do this is: First, never make a commitment whether for
investment or speculation until you have decided, in advance, where
the danger point exists in that stock. Second, calculate the
possibilities for profit if the stock should confirm your judgment
by moving in your favor. Third, determine whether the indicated
probable profit outbalances the indicated risk by at least three to
one. Fourth, place a stop order (under the danger point on a long
commitment and above it on a short sale) the moment your buying or
selling order is consummated.
Note the order... First identify the danger point.. What is it that would negate You bullish or bearish definition...
Then
The danger point determines the vicinity of the stop..
Now We can look to the entry and reward and see how close to that danger point We can be...
Never abandon the use of stop orders.
You may think you have so much money you cannot lose it. Thirty
million people thought that in 1929. Very few used stop orders. I
know, or know of, several who lost $100,000,000. They did not use
stop orders.
A 100,000,000 in 1929 ! OUCH !
Always keep in mind that:
Stop orders should NEVER be changed so that your risk is increased.
All changes should be made for the purpose of reducing risk or
eliminating risk or making sure of part of your paper profits.
OK This is a type of method
The wyckoff Method
You will find bit's of it all over the place.
Defining , determining "danger points" is what the method is about
Yes You do this
..
Because , really what is happening is all that matters it is the Right hand Side of Your chart.. It is NOW..
There is Price, Time and Volume
everything else is a derived and removed from
cheers yonnie
motorway