Conclusion for Candlestick Trading

CONCLUSION

“The conduct of our lives is the true mirror of our doctrine.”

This book was written for one purpose: to expose the ease of using the Candlestick method. The main deterrent for this methodology becoming a widely used trading program has been the perception that it was difficult to learn. My goal in this book has been to eliminate that impression. Learning how to use this program should be analogous to learning the alphabet. Once each letter (signal) is learned, it can be used to form simple words. Once those words are learned, their use can be put into more sophisticated structures (sentences). The same is true with the signals. Once they have been learned, trading procedures can be easily put in place to make the signals more effective.

Through many years of experience, it has been found that the Candlestick technical analysis furnishes a multifaceted benefit to investors. Being able to recognize reversal signals is only a portion of the beneficial aspects. This is an important part of an investment program, yet additional ramifications are a result of trading confidently using the signals. Being able to use them effectively has a dramatic effect upon an investor's investment psychology. Being influenced by outside news or hot tips becomes less prominent. Taking recommendations from professional investment advisory people is now done without blind participation. Investigation of low risk, high probability trading techniques is in your control. You are not restricted to the accepted forms of conventional investing any longer.

Once you have discovered the ease of using the Candlestick method, controlling the risk consequences becomes a self-refining process. Having control of why an investment is made has the added advantage of knowing when it should be ended. The bottom line is that your investment results are now in your total control.

The Candlesticks are excellent stand-alone investment cornerstones; however, more benefits are derived when they are used in conjunction with existing technical methods. Pinpointing the reversal points enhances your ability to develop profitable trading programs when overlaid on a technical analysis method. Each investor can benefit from the signals, whether a novice investor or a professional trader. Each market has its own trading characteristics, and particular signals may work better in one market versus another. Characteristics of a particular stock or commodity may demonstrate excellent reversal points using only one specific signal. You learn these traits through observation. Fortunately, the Candlestick signals provide the opportunity to perfect trading programs by being able to visually witness buy and sell points.

The severity of the losses experienced in the high-tech stocks from early 2000 to early 2001 brought many investors back to reality. The New Economy, once the buzzword, started to resemble Old Economy. For three years prior to that, the dynamics of fundamental research were skewed to fit the moves of the market. Analysts who were recommending stocks at $120 were re-recommending them at $10 three years later. "If I could only see the turn coming, I would have made a fortune on the short side" was an often heard exclamation from investors.

The truth of the matter is that you could see it coming. Candlestick formations decipher emotional rhetoric. Loudly proclaimed stock recommendations are visually scrutinized by the results of investor decisions. Being able to evaluate potential market movement frees investors from the idiosyncrasies of the accepted investment culture. A culture that dictates that you cannot outguess the markets. Listen to the experts who advise buy and hold. Obtaining a 10- or 15-percent annual return is the expected norm. That leaves the question, "How do people become rich from investing in the stock- market if we all are best advised to obtain mediocrity?"

That is why you read this book. Do not let the "experts" influence your fate. To produce average returns, something must have produced good returns, others bad returns. The names of Buffet, Soros, Rogers and others would not be names of recognition is they hadn't figured out how to greatly exceed the expected returns the market relinquishes.

You may not want to be a famous name, but there is absolutely no reason that you can't extract inordinate profits from the same investment playing fields that everybody else has access to. This book should have made you realize that a system has been developed to fulfill that purpose. Use that knowledge. Eliminate emotions from investment decisions. Price movements are mechanical processes implementing emotional influences of the masses. Candlestick analysis has categorized those elements into visual formations. You can take advantage of that knowledge. Your formula for wealth is now indoctrinated with a profit-oriented methodology that has proven itself over and over. It takes our own human weaknesses and mirrors them to expose profitable opportunities.

Hopefully, the procedures explained in this book have helped you discover some aspects of your own aptitudes and weaknesses. Controlling emotion is the most difficult element of investing. Use the signals' probability factors to get accustomed to a new method of thinking. Put your toe in until the results produce the confidence needed. Fortunately, unlike years past, delving into this little known trading method does not have to be tested alone. Experiencing trade situations does not have to be like reinventing the wheel. Profit from the experience of other traders. Providing insights into trades that are familiar allows the new Candlestick investor to gain profitable experience without having to participate in losing situations.

You now have the knowledge to control your own investment future. The probabilities are in your favor. The market is wide open for exploiting the signals. Make inordinate profits. Good luck.