do you have friends?
chances are, that you do have
some pretty fast friends.
since they are your fast friends
you know quite a good deal about them.
what if
some day
they don't behave like what they usually do?
what if they look and act different.
you may not have the real reason
but you know that something is wrong.
your awareness antennae get alerted
and you go slow.
--
same thing goes with trading with stocks.
first, never trade in a stock
till both of you
are friends.
obviously,
you can be friends
only if you know about it
reasonably.
it's behaviour
it's state of affairs.
and then
if you find
that it is not behaving normal
in the direction you expect it to
you should preferably stay away.
in the words of jesse livermore
"....there is what I call the behavior of a stock,
actions that enable you
to judge whether or not it is going to proceed
in accordance with the precedents
that your observation has noted.
if a stock doesn't act right
don't touch it;
because, being unable to tell
precisely what is wrong,
you cannot tell which way it is going.
no diagnosis, no prognosis. no prognosis, no profit."
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