Stock Market goes through four stages of cycle, stage 1 - 4 with each stage plays an
important part to the type of trading strategy to use and take advantage of the stage.
This teaching is made popular by the author of " Secrets for Profiting from Bull and Bear"
by Stan Weinsteins.
important part to the type of trading strategy to use and take advantage of the stage.
This teaching is made popular by the author of " Secrets for Profiting from Bull and Bear"
by Stan Weinsteins.
When I first came across this book, it was doubtful with the title which began with "Secrets".
Many authors like to use this strong word to attact readers to pickup their books and hopefully
buy them.
Many authors like to use this strong word to attact readers to pickup their books and hopefully
buy them.
Nevertheless, I picked up the book, scanned the front and back cover for more information
and then the contents. As I read the book, I immediately knew that this could be the book
that could assist me to break down the stock movement into stages and if I could use the
right strategy for each stage, I should be ok.
and then the contents. As I read the book, I immediately knew that this could be the book
that could assist me to break down the stock movement into stages and if I could use the
right strategy for each stage, I should be ok.
So I bought the book and treated it like a bible, I read and read each time when I had time
until I understood the author's intention.
until I understood the author's intention.
I started to employ stage analysis to the charts in 2003 and was able to detect each stage
as the Market unfolded. This is really an amazing skills to have. By staging the stock
correctly, I am able to identify the accummulation, advancing, distribution and declining
stages without any difficulty. The best of all, stage analysis prevents me to Sell Short a
stock in Stage 2 Advancing Phase or Go Long in Stage 4 Declining Phase. This knowledge
has kept me out of trouble by knowing which stage to apply the correct trading strategy.
as the Market unfolded. This is really an amazing skills to have. By staging the stock
correctly, I am able to identify the accummulation, advancing, distribution and declining
stages without any difficulty. The best of all, stage analysis prevents me to Sell Short a
stock in Stage 2 Advancing Phase or Go Long in Stage 4 Declining Phase. This knowledge
has kept me out of trouble by knowing which stage to apply the correct trading strategy.
Beside apply my own propiertary indicators and trend channel to a stock chart, I make
use of stage analysis as a qualifying criteria to pick up which stock to trade out of the
hundreds. If I am planning for a "long trade", only stage 2 will be considered, if I am
planning for "short sell", only stage 4 will be considered.
use of stage analysis as a qualifying criteria to pick up which stock to trade out of the
hundreds. If I am planning for a "long trade", only stage 2 will be considered, if I am
planning for "short sell", only stage 4 will be considered.
With this method, I have less chance to make mistake trading in the wrong direction and
improve my odd of success.
improve my odd of success.
Below is a sample chart on how I stage a stock for trade consideration.
