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WILEY TRADING ADVANTAGETrading without Fear I Richard W. Arms, Jr.Neural Network Time Series Forecasting of Financial Markets / E. Michael AzoffOption Market Making I Alan J. BairdGenetic Algorithms and Investment Strategies I Richard J. Bauer, Jr.Technical Market Indicators I Richard J. Bauer, Jr., and Julie R. DahlquistSeasonality /Jake BernsteinThe Hedge Fund Edge I Mark BoucherEncyclopedia of Chart Patterns I Thomas N. BulkowskiMacro Trading and Investment Strategies I Gabriel BursteinBeyond Technical Analysis I Tushar ChandeThe New Technical Trader ! Tushar Chande and Stanley S. KrollTrading the flan I Robert DeelNew Market Timing Techniques I Thomas R. DeMarkThe New Science of Technical Analysis / Thomas R. DeMarkPoint and Figure Charting I Thomas J. DorseyTrading for a Living I Dr. Alexander ElderStudy Guide for Trading for a Living I Dr. Alexander ElderThe Day Trader's Manual I William F. EngThe Options Course I George A. FontanillsThe Options Course Workbook I George A. FontanillsPattern, Price & Time /James A. HyerczykProfits from Natural Resources I Roland A. JansenThe Trading Game I Ryan JonesTrading Systems <b Methods, Third Edition I Perry KaufmanTrading to Win I Ari Kiev, M.D.The Intuitive Trader I Robert KoppelNonlinear Pricing I Christopher T. MayMcMillan on Options I Lawrence G. McMillanTrading on Expectations I Brendan MoynihanIntermarket Technical Analysis I John J. MurphyThe Visual Investor I John J. MurphyBeyond Candlesticks I Steve NisonCybernetic Trading Strategies I Murray A. Ruggiero, Jr.The Option Advisor I Bernie G. SchaefferFundamental Analysis I'Jack SchwagerStudy Guide to Accompany Fundamental Analysis I'Jack SchwagerManaged Trading I Jack SchwagerThe New Market Wizards I Jack SchwagerTechnical Analysis /Jack SchwagerStudy Guide to Accompany Technical Analysis /Jack SchwagerSchwager on Futures I Jack SchwagerGaming the Market I Ronald B. SheltonThe Dynamic Option Selection System I Howard L. SimonsOption Strategies, Second Edition I Courtney SmithTrader Vie III Victor SperandeoCampaign Trading/]ohn SweeneyThe Trader's Tax Survival Guide, Revised Edition I Ted TesserThe Mathematics of Money Management I Ralph VinceThe New Money Management I Ralph VinceTrading Applications of Japanese Candlestick Charting I Gary Wagner and Brad MathenyTrading Chaos I Bill WilliamsNew Trading Dimensions I Bill WilliamsLong-Term Secrets to Short-Term Trading I Larry WilliamsExpert Trading Systems I John R. Wolberg
EncyclopediaofChart Patterns
Thomas N. Bulkowski
John Wiley & Sons, Inc.New York • Chichester . Weinheim • Brisbane • Singapore • Toronto
To my parents, who continued to love me even after my homemaderocket set the lawn on fire, and to my four-legged best friend,Rusty, who saved my life; it grieves me that I couldn't save yours.
This book is printed on acid-free paper. ©Copyright © 2000 by Thomas N. Bulkowski. All rights reserved.
Published by John Wiley & Sons, Inc.Published simultaneously in Canada.No part of this publication may be reproduced, stored in a retrieval system or transmitted inany form or by any means, electronic, mechanical, photocopying, recording, scanning orotherwise, except as permitted under Sections 107 or 108 of the 1976 United States CopyrightAct, without either the prior written permission of the Publisher, or authorization throughpayment of the appropriate per-copy fee to the Copyright Clearance Center, 222 RosewoodDrive, Danvers, MA 01923, (978) 750-8400, fax (978) 750-4744. Requests to the Publisher forpermission should be addressed to the Permissions Department, John Wiley & Sons, Inc.,605 Third Avenue, New York, NY 10158-0012, (212) 850-6011, fax (212) 850-6008,
E-Mail: PERMREQ @ WILEY.COM.This publication is designed to provide accurate and authoritative information in regard to thesubject matter covered. It is sold with the understanding that the publisher is not engaged inrendering professional services. If professional advice or other expert assistance is required, theservices of a competent professional person should be sought.
Library of Congress Cataloging-in-Publication Data:Bulkowski, Thomas N., 1957Encyclopedia of chart patterns / Thomas N. Bulkowski.p. cm.—(Wiley trading advantage)Includes index.ISBN 0-471-29525-6 (alk. paper)1. Stocks—Charts, diagrams, etc. 2. Commodities—Charts,diagrams, etc. 3. Technical analysis. I. Title. II. Series.
HG4638.B85 2000332.63722—dc21Printed in the United States of America.
10 9 8 7 6 5 4 3
99-15789
Preface
When I was a little tyke I decided the easiest way to riches was to play the stockmarket. It was, after all, a level playing field, a zero-sum game with somebodywinning and somebody losing (hint: The winner is always the broker). All onehad to do to win was pick the stocks that went up and avoid the stocks that wentdown. Easy.I kept this in mind when I graduated from Syracuse University with anengineering degree and showed up early for my first professional job. Eaclmorning I cracked open the newspaper and plotted my stock picks on a piec\of paper taped to the wall. Bob, my office mate, used the same newspaper toselect his stocks. I chose my selections using strict and exhausting fundamental research, but Bob simply closed his eyes, twirled his hand around, andplunged his finger into the newspaper. When he opened his eyes and removedhis finger, he announced another pick.After several months of tracking both our selections, I made a startlingdiscovery: I was getting creamed. Bob's random selections were beating the tarout of my carefully researched choices. I also discovered something else: I waslearning a lot by paper trading.With the hesitancy and distrust inherited from my parents, I studied twodozen firms before making my final selection and first purchase: I opened amoney market account. The timing was excellent; I was earning over 17% onmy cash. At first glance, the return might imply a very risky investment but itwas not. The prime rate was, after all, at 21%.Flush with success, I gathered my courage and opened a brokerageaccount and began investing with the few pennies I saved. Again, the timingwas excellent as I caught the beginning of a major bull market. I bought a stocknear 3!/2 and watched it go to 46 l/i—my first ten-bagger.Lest you think that everything was easy, consider what happened. Mystock portfolio was growing by leaps and bounds, but my professional careerwas about to take a turn for the worse. After switching careers more often thanI sometimes like to admit, I landed at a job with a company I could finally call
viii
Preface
home—a job that would last a lifetime, or so I thought. Almost six months aftermy 10-year anniversary with the company, I received a letter from the chairman. He congratulated me on my decade with the company and looked forwardto even more success for me in the coming years. Six weeks later I was laid off.I took stock of the situation and decided that, at the age of 36,1 had hadenough. Newspapers term guys like me The Missing Million. We are the oneswho, for whatever reason, leave their jobs and decide not to go back into theworkforce. We retire. Everyone, and I mean everyone (with the notable exception of my cousin Mary Ann—bless her heart), thinks we are nuts. They areright, of course!For the longest time, I have been fascinated with technical analysis ofstocks. In the early years, I considered the little squiggles to be nothing shortof voodoo. Still, I was curious as to why the major brokerage houses were hiring technical analysts in droves. But I did not dare take my eye off the fundamentals simply because I did not know anything about the technicals. Then Idiscovered Technical Analysis of Stocks and Commodities magazine. During mylunch hour, I would take the elevator down to the library and read back issues.Although I had seen chart patterns in the stocks I bought, I never reallyattached much significance to them. As some of my selections went sour, Ibegan to view chart patterns with more respect. The fundamentals alwayslooked good, but the technicals were signaling a trend change just as I wasabout to pull the trigger. The stocks I bought either lost money outright or Isold them too soon and cut my profits short.Perhaps this has happened to you. You do your fundamental research ona stock, then buy it only to watch it go nowhere for a year or more. Even worse,once you get in, the stock tumbles. Had you looked at the chart the answer wasalways there. Prices pierced a trendline, a head-and-shoulders top appeared outof nowhere, the relative strength index signaled an overbought situation. Inshort, any number of technical indicators were screaming that a buy nowwould cost you your shirt. But you never saw the signs because you had youreyes closed.You are not alone; I did the same thing for years. I eventually got so frustrated with the performance of my stock selections that I decided to do my ownresearch on technical analysis. I went to the library and read the same thing inmany books: A head-and-shoulders formation works most of the time. Whatdoes that mean? Does it mean they are successful 51 % of the time or 90% ofthe time? No one had the answer. I was not willing to risk my hard earned dollars on simple bromides. As an engineer I wanted hard, cold facts, not fuzzyplatitudes. So, I wrote this book.At the back of the book is an Index of Chart Patterns. If you suspect yourstock is making a chart pattern but do not know what to call it, the Index ofChart Patterns is the first place to look. Page numbers beside each patterndirect you to the associated chapter.
The chapters arechart pattern of interes"Results Snapshot" of tha "Tour" invites you toin both table form andchoices easier. For simGuidelines" have beenNo work would bethe "Focus on Failures""Statistics" section follois likely to perform, antrade it? That is whatexplore.If you have ever wwill recognize the imponot want to use a flat-hthe job but they are haryou should be using, buto use them is half thewheat from the chaff. Swill want to take profitnone at all.I cannot give you tket using chart patterns.paper first." That is theyou, one you are comfoyour paper trades, younecessary evil: It is a usport and resistance levelget out near the top, cutYou will discover wbulent markets. Unlessunderstand why the avecase scenario and will cit above the most likelymonds, but as a chart pasays it all. Experience.Good luck.
Acknowledgments
Perhaps several times in your life, something happens that alters the directionyour life is taking. That happened to me several years ago when I brashly submitted my first article to Technical Analysis of Stocks and Commodities. Much tomy surprise and delight, the editor at the time, Thorn Hartle, published thework. That single event sent me spinning off in a new direction.Nearly a dozen articles later, I called Thorn and chatted with him aboutan idea for a book. He steered me to Pamela van Giessen, senior editor forJohn Wiley & Sons, Inc., publisher of this book. A single e-mail of my idea toher put a new set of wheels in motion.Simple words cannot express my thanks to these two outstanding individuals. Of course, there are many others such as my younger brother, Jim, theunsung heroes that sometimes gave me a helping hand, formed my supportgroup, or gave me a good, swift kick in the butt. They are not forgotten.
T. N. B.
Contents
1
Introduction
1
Broadening Bottoms
12
2 Broadening Formations, Right-Angled and Ascending
27
3
Broadening Formations, Right-Angled and Descending
40
4
Broadening Tops
5;
5
Broadening Wedges, Ascending
72
6 Broadening Wedges, Descending
87
7 Bump-and-Run Reversal Bottoms
100
8
119
Bump-and-Run Reversal Tops
9 Cup with Handle
135
10
Dead-Cat Bounce
153
11
Diamond Tops and Bottoms
165
12
Double Bottoms
182
13
Double Tops
197
14
Flags and Pennants
213
15 Flags, High and Tight
227
16
240
Gaps
17 Hanging Man
252
18
262
Head-and-Shoulders Bottoms
19 Head-and-Shoulders Bottoms, Complex
276
20
290
Head-and-Shoulders Tops
xiv
Contents
21
Head-and-Shoulders Tops, Complex
305
22
Horn Bottoms
320
23
Horn Tops
332
24
Inside Days
343
25
Island Reversals
356
26 Measured Move Down
369
27 Measured Move Up
382
28
394
One-Day Reversals
29 Outside Days
404
30
Pipe Bottoms
417
31
Pipe Tops
429
32
Rectangle Bottoms
439
33
Rectangle Tops
453
34 Rounding Bottoms
466
35
477
Rounding Tops
36 Scallops, Ascending and Descending
487
37
501
Shark-32
38 Triangles, Ascending
511
39 Triangles, Descending
529
40 Triangles, Symmetrical Bottoms
545
41
560
Triangles, Symmetrical Tops
42 Triple Bottoms
576
43 Triple Tops
590
44 Wedges, Falling
603
45
617
Wedges, Rising
46 Weekly Reversals, Downside
631
47
Weekly Reversals, Upside
642
Statistics Summary
654
Index of Chart Patterns
663
Subject Index
669
EncyclopediaofChart Patterns
Introduction
Jim is struggling.He is the owner of JCB Superstores and his competitor across town isbeating him up; there is blood all over Jim's ledger. He decides it is time to takeoff the gloves: JCB goes public. He uses the money from the initial publicoffering to buy his competitor and add a few more stores around town.With a growing sales base, Jim's clout allows him to negotiate lowerprices for the office supplies he is retailing. He passes on part of the savings tohis customers, while watching his margins widen, and plows the profits backinto building more stores.Jim calls his friend, Tom, and tells him of his plans to expand the operation statewide. They chat for a while and exchange business tactics on how bestto manage the expansion. When Tom gets off the phone, he decides to conduct his own research on JCB. He visits several stores and sees the same thing:packed parking lots, people bustling around with full shopping carts, and linesat the checkout counters. He questions a few customers to get a sense of thedemographics. At a few stores, he even chats with suppliers as they unload theirwares. Back at the office, he does a thorough analysis of the financials andlooks at the competition. Everything checks out so he orders his trading partners to buy the stock at no higher than 10.When news of the expansion plan hits the wires, the Street panics. It is,after all, a soft economy and expanding willy-nilly when a recession looms isdaft, maybe even criminal, according to them. The stock drops below 10 andTom's crew makes its move. They quietly buy as much as they can withoutraising suspicion. The stock rises anyway. It goes back up to 11, then 12, androunds over at 13 before heading back down.i
2
Introduction
Several months go by and the economic outlook is as bleak as ever. Thestock eases down to 9. After Tom checks in with Jim for the latest public news,Tom's team buys more. It is an easy score because investors are willing todump the stock especially as year-end tax selling approaches.Six weeks later the company releases the sales numbers for JCB; they arebetter than expected. The stock rises 15% in minutes and closes at 10%. Andthat is just for starters. Six months later, it's clear the economy was neverin danger of entering a recession and everyone sees boom times ahead. Thestock hits 20.Years go by, the stock splits a few times, and the holiday season looms.Tom interviews a handful of customers leaving JCB Superstores and discoversthat they are all complaining about the same thing: The advertised goods aremissing. Tom investigates further and discovers a massive distribution problem, right at the height of the selling season. JCB has overextended itself;the infrastructure is simply not there to support the addition of one new storeeach week.Tom realizes it is time to sell. He tells his trading department to dumpthe stock immediately but for no less than 2814. They liquidate about a third oftheir large holdings before driving the stock down below the minimum.Since it is the holidays, everyone seems to be in a buying mood. Noviceinvestors jump in at what they consider a bargain price. The major brokeragehouses climb aboard and tout the stock, but Tom knows better. When thestock recovers to its old high, his trading partners sell the remainder of theirholdings. The stock tops out and rounds over. During the next month and ahalf, the stock drifts down, slowly, casually. There does not appear to be a rushfor the exits—just a slow trickle as the smart money quietly folds up shop.Then news of poor holiday sales leaks out. There is a rumor about distribution problems, merchandising mistakes, and cash flow problems. Brokeragefirms that only weeks before were touting the stock now advise their clients tosell. The stock plummets 39% overnight.One or two analysts say the stock is oversold; it is a bargain and investorsshould add to their positions. Many bottom fishers follow their brokers' recommendation and buy the stock. Big mistake. The buying enthusiasm pushesthe price up briefly before a new round of selling takes hold. Each day the stockdrops a bit lower, nibbling away like waves washing against a castle of sand. In2 months' time, the stock is down another 30%.The following quarter JCB Superstores announces that earnings willlikely come in well below consensus estimates. The stock drops another 15%.The company is trying to correct the distribution problem, but it is not something easily fixed. They decide to stop expanding and to concentrate on theprofitability of their existing store base.Two years later, Tom pulls up the stock chart. The dog has been flat forso long it looks as if its heartbeat has stopped. He calls Jim and chats about theoutlook for JCB Superstores. Jim gushes enthusiastically about a new retailing
concept called the Intersupplies on-line withoubecause the on-line comexpand. Tom is impressing the stock again.
Investment Footp
If you picture in your mrecognize three chart pabounce. To knowledgeprice chart; they are thethey need to follow as tTo others, such as Tom,dare take a position in aare the smart money thaplay. It is called investinWhether you choosyour trading decisions, ilook for the footprints.and get you out of a stocthe same ones that willinvestment opportunity.This book gives yothe stock is heading, howlowing really is. The tooinstruments to greater w
The Database
If you want to discover htry teaching a computerpreparing for this book.over 15,000 formations.another tool to augmeneyes, a friend nudging yorun reversal."When the startingof 5 years (each from midlect statistics. I includedvarying market capitaliz
Introduction
Averages and the Frequency Distributions & P soo
(they were not unduly flat over the 5-year period) and did not have consistentlylarge daily price ranges (too thinly traded or volatile).I usually removed stocks that went below a $1.00, assuming bankruptcywas right around the corner. Most of the names in the database are popularAmerican companies that trade on the NYSE, AMEX, or NASDAQ. Thenumerous illustrations accompanying each chapter give a representative sample of the stocks involved.Occasionally a chart formation came along that presented a problem. Itwas so scarce that 2,500 years (500 stocks times 5 years) of daily price data weresimply not enough. So I pulled from the database I use on a daily basis. It contains about 300 issues and begins where the other one ends.
Stock Performance from 1991 to 1996Before reading about the various chart patterns in this book, it is wise to reviewthe performance of the stock market during the period. Figure 1.1 shows amonthly price chart of the Standard & Poor's 500 stock index. Beginning inmid-1991, you can see that the market hesitated until January 1992. It had awild burst upward, perhaps due to the January effect, but trended downwarduntil May. (In case the January effect is unfamiliar to you, it is commonlyattributed to investors selling their stocks for tax reasons near year end thenbuying back during January. The selling may or may not depress prices,whereas the January buying gives them a temporary lift.) Toward the end of1992, it looks as if the January effect occurred early, in December, when pricesbroke through their malaise of consolidation and reached new highs. Thenit was off to the races, and prices rose on a steady tear until March 1994.The market stumbled and moved up for 5 months then declined for 4months. Beginning in 1995, the race resumed, but the pace accelerated. Theslope of the trend tilted upward noticeably until running into some turbulencein early 1996.What does all this mean? Viewed as a whole, the market during the 5years used in my analyses plus the 2 or 3 additional years used sporadically butnot shown in Figure I.I, marks a very bullish environment. While the marketas a whole was going up gangbusters, many individual stocks were not so fortunate. Some had steady downward trends. Others moved up smartly, rolledover, and died (check out most semiconductor and semiconductor capitalequipment stocks in 1995).During a soaring bull market, bullish chart patterns are more successfulby having fewer failures and longer uphill runs. They perform better, chumming along on a rising tide that lifts all boats.Common sense suggests that bearish formations might fail more readilywith stunted declines. More likely, though, is that bearish patterns just disap-
Figure 1.1
Standard & Poor's 500 stock index from 1991 to 1996.
pear; they never happen. You might think that stocks moving up would formbearish reversals. Instead, diey just keep moving up, now and again pausing tocatch their breath before continuing the rise.You can see this trend in the statistics. Bullish formations, those that typically occur after a downward price trend and signal an upward reversal, happen more often than bearish ones. Symmetrical triangles are a good example.Triangles with upside, bullish breakouts occurred 225 times, whereas downsidebreakouts happened 176 times. A favoring of the bullish trend is also evident inmany paired formations. Consider double bottoms and double tops. Therewere 542 bottoms (bullish) and only 454 tops (bearish).Even the statistics favor a bull market. A stock moving up can advance50%, 100%, or even 1,000%. The gains can be unlimited, but what of thedeclines? A stock can only lose 100%, or all of its value, and nothing more.
Averages and the Frequency DistributionThe frequency distribution mentioned so often in this book deserves specialattention. Before I discuss it, however, let me explain averages. An average isthe sum of the numbers divided by the number of samples. If you measure thereturns from five chart patterns and they are 30%, 40%, 50%, 60%, and 120%,dien the average is 60%. That is the sum of the numbers (300) divided by 5samples.
6
Introduction
This example shows the effect large numbers have on the average. If the120% gain is not in the series, the average drops to 180/4 or 45%. The singlelarge gain pulls the overall average upward, distorting the result. This distortion is important when discussing bullish formations. A 600% gain in one chartformation can make a chart pattern appear more successful than it really is.Instead of dropping off samples (by arbitrarily removing the large returns), Iuse a frequency distribution.The esoteric name frequency distribution is appropriate. To create a frequency distribution, find the highest and lowest values to give you the range.Divide the range by 10 because you want to sort the numbers into 10 bins (10is arbitrary, but commonly chosen). Then, you do just that—sort the numbersinto one of 10 ranges and place them in the bins. When finished, count howoften the numbers appear in each bin (the frequency). Note that you do notadd up the numbers, you just count how often they appear. It is a lot like seeing troops on a battlefield. You really do not care how tall each one is, only thatthey outnumber you. The results are the same: You wet your pants and run!An example makes this clear. Look at Table 1.1. Suppose I am studying achart formation and have the gains for 50 patterns. For simplicity, suppose thegains range from 5% to 95%. The first column in the table holds gains lessthan 10% and the last column holds gains over 90%. I do not show them all inthe table, but I begin placing die gains into the different bins, and the first 10gains are 8%, 35%, 70%, 13%, 95%, 9%, 6%, 33%, 3%, and 63% (see Table1-1). When I finish placing the gains from the 50 formations into the table andsum the columns, I see which column has the highest frequency. A count ofeach column appears as the last row in the table and assumes all 50 formationswere sorted.From the numbers in the bottom row, we see that the first column has thehighest frequency and represents those formations with gains of less than 10%.We might conclude that if you invested in a similar chart formation, your gainis likely to be between zero and 10%, since that is where most (40%) of die formations reside. The average of the 50 gains will likely be higher than 10%,especially if the higher ranges show either a large number of entries or represent large gains.I call the column with the highest frequency "the most likely gain."Sometimes the sum of the columns are near to one another and so the mostlikely gain is a range of values, such as 10% to 20%. Just because a chart pattern has a most likely gain of 10% does not mean that you will have a 10% gainfrom trading your chart pattern. After all, if you trade the pattern well enoughand often enough, you should approach the results represented by the average.However, I feel that the most likely gain gives the investor a better understanding of the performance or reliability of the chart pattern.I use a frequency distribution any time I want to see which range occursmost often (or any time I think outliers distort the average). It is just anotherperspective, a useful tool in the hands of an investor.
8
Developing an Investment Style
Introduction
Investing Using Chart FormationsI could give a dentist's drill to any person walking by, but I would not let himor her near my teeth. This book is just like that. It gives you the tools to invest successfully. It suggests which chart patterns work best and which ones to avoid.Whether you can make money using them is entirely up to you.I call this book an encyclopedia because that is how I use it. Whenever Isee a chart pattern forming in a stock I own, or am thinking of buying, I read
the applicable chapter. The information refreshes my memory about identification quirks, performance, and any tips on how I can get in sooner or moreprofitably. Then I search for similar patterns in the same stock (using differenttime scales), and if that does not work, I search for similar patterns in stocks in
the same industry. I look at them closely to determine if their secrets areapplicable to the current situation. I try to learn from their mistakes.At the same time, I am paper trading chart formations in the 250 or sostocks I follow on a daily basis (relax, a review only takes me an hour). Eventhough I consider myself an experienced investor (after nearly 20 years, what
do you think?), the constant paper trading keeps me sharp. It has movedpulling the trigger (buying or selling a stock) from a conscious effort to a rote
reflex. The constant checking on how the chart pattern is faring forces me todevelop an intuitive feel for the formation, the stock, and the market.
9
Most people buy stocks like they buy fruit. They look at it, perhaps sniffit, and plunk down their money. We are not talking about $1.59 here. We aretalking about thousands of dollars for part ownership in a company.If you have ever been a board member, you know what I am talking about.You have a fiduciary responsibility to the people who elected or appointed youto that position. Not only should you study the material handed to you by thestaff, but you have to get out in the field and kick the tires. Do not assume thatwhat the staff says is always correct or represents the best solution. Questioneverything but learn in the process and try to be helpful without being a pest(I always seem to fall into the pest category). As a shareholder—an owner of thecompany—should it be any different?I recently was considering buying a position in a company showing an
upside breakout from a symmetrical triangle. My computer program told methe company is a member of the machinery industry and further researchrevealed that it makes refractory products. I continued doing research on thecompany until the message gnawing at me finally sank in. I did not have the
foggiest idea of what a refractory product was. Despite my search for an answer,I was not getting the sort of warm fuzzies I usually get when researching a possible investment. So, I passed it over. I am trading it on paper, sure, but not inreal life. Call it the Peter Lynch Syndrome: Do not invest in anything you can-
not understand or explain in a paragraph. Good advice.Of course, if you blindly invest in chart squiggles and it works for you,who am I to tell you you are doing it wrong? The fact is, you are not. If you
Developing an Investment Style
consistently make money at it, then you have developed an investment stylethat fits your personality. Good for you!
The question I am asked most often is, how do I develop an investment style? It isusually not asked like that. Most take a more direct approach: How do I make
My investment style, as you might have guessed, combines fundamentalanalysis, technical analysis, emotional analysis, and money management.
money trading stocks? When first asked this question, I stumbled over theanswer. I think it is like showing four people the color blue and asking them todescribe it. One person is