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 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.
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.
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.
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.
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
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.
considered.
With this method, I have less chance to make mistake trading in the wrong direction and improve my
odd of success.
odd of success.
Below is a sample chart on how I stage a stock for trade consideration.
