Not exactly. They made a boatload predicting that the market would run up wildly and crash in '87. Basically they figured out that the market was acting like 1929.
Yeah well, I'm a bit into "technical market heresy".... as some of the conventional wisdom is BS. I've never mentioned it before but one of the original Market Wizards contacted me years ago about managing some of his clients' money for him. (Why would he contact me? How would he even know about me?... though at one time I was once arguably the "biggest fish in a small pond" of money management. I leave that mystery for you to ponder.) FWIW...
%% Maybe that was where IBD newspaper got the idea; but it was a very close pattern in 1987/1929-1933. But fundamentals have changed so much; FDIC, better bank regulators/FED, much less margin allowed on stocks, food banks, better run banks, much stronger real estate markets/maybe weaker commercial RE, many more traders/more volume, inverse ETFs. Time will tell if the coin shortage holds. And in the old days/ T Boone Pickens climbed up the leaded gasoline price pole + lowered the bids/LOL.
%% A good trend/many good trends will teach let profits run. But actually those 2 goals[targets, profits run] are the same coin with 2 sides, so to illustrate. And he has a problem most of dont have; super size has to scale out. Good points................................................................................................................
This is hands-down the main rule for becoming profitable. The others are how to make money, this is the key - how to not lose money. Traders who separate those two functions in their analysis do better. At least I did - now I make money. Ha ha - I'll be back to let you know if I get rich. (Unlikely!)
I wouldn't totally agree. You can have a target in mind and still let it run, if it will. If I see big volume as a stock or other tradeable approaches my target, I might well lift the target sell order up out of the way completely, move my stop up tight underneath it, and follow it on up as it exceeds my target price. If it gains another percent or so, great. If it gains more, great. Once my stop is above my original target, it's all gravy, and exceeding my expectations, free to run, okay to dip down and stop out. The difference is I won't ride it down after it has hit my target. I will gladly take any extra gravy that is given, without giving up the meat I expected. I will not ride it back down. If it goes down, touches bottom and zooms back up, that would be another trade altogether, with its own stop and target, both of which will have changed. If price movement slows down and volume tapers off before getting close to my target, I am not averse to closing the position after a few downward ticks. That doesnt mean I am disregarding my original target. It just means that once I am in a trade, I am more concerned with what a stock is actually doing, than what I expected it to do.