Courtesy of Read the Ticker.
Not all ‘Causes’ or accumulations (or distributions) warrant a trade, some are good and some are not, it is the readers job to determine which are more Mr Hyde or Mr Jekyll.
The Law of Cause and Effect
In order for there to be an effect (change in price), there needs to be a cause. The effect will be in direct proportion to that cause. Best price moves occur when there has been enough time to allow for a period of accumulation or distribution (or in other words a cause).
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Investing Quote…
..”Thus, I affirm, every class of phenomena, whether in nature or in the stock market, must be subject to the universal law of causation and harmony. Every effect must have an adequate cause.”..
William D Gann
..”Money can’t buy you happiness but it does bring you a more pleasant form of misery”..
Spike Milligan
..”The key to making money in stocks is not to get scared out of them”
Peter Lynch
..”Wall Street is the only place that people ride to in a Rolls Royce to get advice from those who take the subway”..
Warren Buffett
..“Bull markets are born on pessimism, grow on scepticism, mature on optimism and die of euphoria.”..
John Templeton
