This concludes the Introduction to Technical
Analysis. I suggest you refer to Section Two while you continue to
explore this exciting and potentially profitable pursuit.
A fitting conclusion to an introduction on technical
analysis is a list of lessons I have learned, both from others and the
hard way.
Don't compound your losses by averaging down
(i.e., don't keep buying additional shares at lower prices). It is
tempting to think that a loss "doesn't count" until the position is
closed--but it does!
Anytime you own a security, ask yourself if you
would buy it today. If you wouldn't buy it, you should consider
selling it.
Don't get distracted by others' investment
prowess. Most investors only discuss their successes, threatening your
focus and confidence.
Wise investments aren't made with Ouija boards,
they are made using logical approaches that minimize risks and
maximize opportunities.
Master the basics. Most investors spend their
time looking for easy money (which is not an easy search) instead of
learning the key factors to security prices--supply and demand.
"Opportunities flit by while we sit regretting
the chances we have lost..."
- Jerome K. Jerome, 1889
