Friday, January 28, 2011

zig-zag-zoom!

dip your shoes in blue ink

and walk 20 steps

in one direction

on a red carpet!

--

now remove your shoes

come back bare foot

and join (with a marker pen)

every left footprint

with the next right footprint

and further join

this right footprint

with its next left footprint!

--

what do you get?

a line joining the footprints

in a zig zag pattern

left-right-left-right-left......

but still moving

in a definite direction!

--

same thing happens in stock market!

market moves on its two feet

of "high" and "low"

in a zig zag way

but always in a particular direction!

--

traders confuse the zig and zag

as the change in direction!

they focus on direction of zig AND direction of zag

and not on the direction of zig-zag!!

--

consequently, the fear takes the better of them

and they chicken out!

--

those who are well-versed with the market's wavered walk

ignore both the zig as well as the zag!

instead, they just keep an eye on the net direction of the zig-zag!

--

with practice

they can tell

when the zig-zag changes its direction

and hence the trend!

and with it, they change the direction of their trade as well!!!

--

zig zag is the last dodging tactic of the market.

the trader

who can see through this tactic

has got the ultimate master key to riches!!!

No comments: