services, and new inventions. He created an acronym—C-A-N-S-L-I-M to help investorsremember what they should be looking for when searching for a new company to invest in. The C stands for current quarterly earnings; the A stands for annual earningsincreases; the N represents new products, new management, and new highs; the Srefers to supply and demand; the L stands for leader or laggard; the I represents institutional sponsorship; and the M refers to the overall current market direction.Mr. O’Neil is best known for founding the Investor’s Business Dailynewspaper and writing the book How to Make Money in Stocks(McGraw-Hill, Sept. 1994). His C-A-N-S-L-I-M approach has helped millionsof people understand what they need to look for in a promising investment.
Mr. O’Neil believes that investors should take a longer-term investing approachto the stock market and follow the guidelines that are emphasized in his C-A-N-SL-I-M formula. He feels that the U.S. economy will continue to grow and remain onits upward path, which will inevitably lead to higher prices in the stock market.What is the formula for this continued economic growth? Mr. O’Neil says that it is“free people, in a free country, with strong desires and the incentives to unceasinglyimprove their circumstances.”
John NeffA prominent figure in the contemporary world of investments, John Neff recentlyretired as the manager of the Van Windsor Fund. Under his direction, Windsor became the largest mutual fund and actually surpassed market performance for 22 outof 31 years.Deemed a contrarian investor by the investment community, Neff preferred to becalled a low-P/E investor. Throughout his career, he disregarded the prominent andpopular investment philosophies that permeated the investment community and pioneered an innovative investing approach—Measured Participation—based on a lowP/E strategy that uses fundamental analysis and common sense to locate undervalued
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stocks. Eschewing the big growth stocks of his time, Neff found success by placinghis bets on the inexpensive, underperforming stocks. This method paid off in huge rewards for both Neff and his investors.John Neff is the contrarian hero of the contemporary investmentcommunity. His investment philosophies are disseminated in hisbest-selling book, John Neff on Investing (John Wiley & Sons, Oct. 1999).
Neff is also a master of knowing when to sell. “Successful stocks don’t tell youwhen to sell,” he states. “When you feel like bragging, it’s probably time to sell.”Time and again, he has proven that his unique approach to investing pays off bigand provides huge returns to those who have patience and perseverance.
Linda Bradford RaschkeRaschke initially fell in love with the markets when, as a child, she helped her father look through stock charts for specific patterns. After graduating from college,she unsuccessfully tried to get a job as a stockbroker and eventually took to hangingout on the floor of the Pacific Stock Exchange before starting her job each day as afinancial analyst. Eventually a local took her under his wing and introduced her tooptions trading. She quickly developed her own style by trading options on stocksand indexes before evolving into a futures trader. In 1980, she began her illustriouscareer as a floor trader on the Pacific Stock Exchange, both as a floor trader and as amoney manager, before moving on to the Philadelphia Stock Exchange. In 1986, aserious horse-riding accident forced her to become an off-floor trader specializingin short-term trading. Her phenomenal success in this complex arena gained her thesole woman interview in Jack D. Schwager’s best-seller The New Market Wizards.Unlike other buy-and-hold stalwarts, Raschke has made her mark with an aggressive trading style, using methods of technical analysis to point to entry and exitpoints. Her emphasis on having a plan in place before the trade is opened is a basicdoctrine she follows, and apparently it works very well for her style of trading. Onepattern that Raschke focuses on is based on finding markets that move from relativelows to relative highs in a matter of days.As one of the few successful women in the investment business, Raschkeencourages women who have the confidence to get involved. She believes thatperformance is all that counts and that women possess unique qualities thatmay even help them to acquire and maintain success once it is achieved.
Her worst month of trading set her back just 2%, and her triple-digit returns havemade her a sought-after money manager, although she doesn’t openly solicit money.She claims that her trades have an approximately 70% profitability rate. She attributes her success in being able to predict market patterns and advises novice tradersto immerse themselves in the markets and learn to specialize in one market or pattern before moving on to another.
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LEGENDARY INDUSTRIALISTS AND BUSINESSPEOPLE
Andrew Carnegie (1835–1919)Andrew Carnegie started his first job at age 12, working as a bobbin boy in a cottonfactory. He studied hard in night school and eventually got a job as a messenger in atelegraph office. At 18, he became private secretary and personal telegrapher forThomas Scott, a superintendent of the Pennsylvania Railroad Company. He roseswiftly and succeeded Scott as superintendent of the railroad’s Pittsburgh division.At this time, he began investing in the Woodruff Sleeping Car Company. This company was the original holder of the Pullman patents, enabling Carnegie to start hisfortune when they launched the first successful sleeping cars on American railroads.He was making $50,000 a year by the time he was 30 years old.By the time he was 40, Carnegie had consolidated his holdings into his own company, Carnegie Steel. He purchased the coke fields and iron-ore deposits that furnishedthe raw materials for steelmaking, as well as the ships and railroads that transportedthese supplies to his mills. Using innovative new British steelmaking processes, plusstate-of-the-art assembly production techniques including detailed cost- and production-accounting procedures, the Carnegie Steel Company was able to dominate theAmerican steel industry of the time. A major battle with the unions hurt his reputationand penetrated his seemingly bulletproof business psyche. After years of head-to-headbattle with J. P. Morgan, in 1901 Carnegie sold the Carnegie Steel Company to J. P.Morgan’s newly formed United States Steel Corporation for $250 million.Even as a young man Carnegie had always been keen on expressing his opinionsregarding political and social matters. The June 1889 issue of the North AmericanReview published his most famous article, which came to be called the “Gospel ofWealth.” Historians agree that Carnegie would have loved the immediacy of the Internet, especially the fact that his words could be available at any time to millions. Interms of ascertaining how Carnegie’s skills could shed a light on picking successfulstock tips, he reportedly replied when Mark Twain asked Carnegie his business secrets of success, “Put all your eggs in one basket and then watch that basket!”Carnegie believed that anyone who accumulates great wealth has aduty to use the surplus wealth for “the improvement of mankind”in philanthropic causes. His greatest and best-rememberedphilosophical doctrine held that “A man who dies rich dies disgraced.”
John D. Rockefeller (1839–1937)Educated in public schools in his hometown of Richford, New York, John D. Rockefeller started his first job as a bookkeeper at age 16. When he was 23 he went intobusiness with Samuel Andrews, who had invented a new low-cost processing procedure for refining crude oil. By 1865, he had the largest refinery in the area. Fromthen on, Rockefeller concentrated exclusively on making money in the oil business.In 1870, Rockefeller incorporated his new enterprise with a few associates and
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called it the Standard Oil Company of Ohio. Since Rockefeller put an emphasis onbottom-line operations, the company was able to acquire pipelines and terminal facilities and negotiated with railroads for favored rates on its shipments of oil. Afterpopular protest, these arrangements were canceled within three months, but most ofRockefeller's competitors in the Cleveland area had already been forced to sell outto his combine. By 1872, Standard Oil controlled nearly all the refineries in Cleveland. By 1882, it had a near monopoly of the oil business in the United States. In1881, Rockefeller and his associates placed the stock of Standard of Ohio and its affiliates in other states under the control of a board of trustees, with Rockefeller atthe head. Thus they established the first major U.S. trust and set a pattern of organization for other monopolies.Many regarded the aggressive competitive practices of Standard Oil as ruthless.As public hostility toward monopolies grew, some industrialized states began to enact antimonopoly laws, culminating in the passage of the Sherman Antitrust Act of1890 by the U.S. Congress. In 1892, the Ohio Supreme Court held that the StandardOil Trust was a monopoly, and in violation of an Ohio law prohibiting monopolies.Rockefeller evaded the decision by dissolving the trust and transferring its properties to companies in other states with interlocking directorates so that his sameboard of trustees controlled the operations of the affiliated companies. In 1899,these companies were brought back together in a holding company—Standard OilCompany of New Jersey. This company existed until 1911, when the U.S. SupremeCourt declared it in violation of the Sherman Antitrust Act, and therefore illegal.As the father of corporate monopolies, Rockefeller set the standard foroutsmarting the competition using any means possible. In responseto his Machiavellian techniques, antitrust laws are now in place to undoany attempts by corporations to follow in his illustrious footsteps.
J. Paul Getty (1892–1976)After graduating from the University of Oxford in 1913, Jean Paul Getty, son of an oilmillionaire, worked as an independent wildcatter, buying and selling oil leases nearTulsa, Oklahoma. In the beginning, he worked as his own geologist, legal adviser,drilling superintendent, explosives expert, and roughneck. But J.P. proved to be agifted entrepreneur and eventually became known as one of the world’s richest men.By 1916, at 24 years old, Getty had to decide what to do with his first million.His father advised him to use his money as an investment in the development andoperation of businesses that would provide jobs and wealth for countless employees. He set about turning the world upside down in pursuit of his oil empire.In the field, the bigger oil companies housed expensive consultants and administrative personnel in fancy digs, while the wildcatters used funky old trucks andmuddy cars as their offices. During the 1920s, he moved his base of operations toCalifornia and set about gaining control of several large independent oil companiesby relying on his own instincts, experiences, and resources learned from his wildcatting days. His most lucrative venture was a 60-year oil concession that he
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obtained in Saudi Arabia in 1949. The profits from this contract built up his massivefinancial empire and vaulted him into the billionaire class by the mid-1950s.In later life, whenever Getty was asked to give advice on gainingand using great wealth, he would always refer back to the lessonshe learned earning and investing his first million dollars.
Rupert Murdoch (1931–)Murdoch received his master’s degree at Worcester College, Oxford, England, in1953 and worked for a while as an editor on Lord Beaverbrook’s London Daily Express. It was here that he initially acquired real experience in the frontline trenchesof sensationalist journalism that would influence his entire career as a publisher. After his father died in 1954, he returned to Australia to claim his inheritance of theAdelaide Sunday Mail and the Adelaide News. Often writing its banner headlineshimself, he quickly transformed the Adelaide News into a paper dominated by histrademark style: tabloid reporting of sex and scandal.In 1969, Murdoch went about obtaining his first British newspaper—the News ofthe World of London. By this time, he had a proven formula for circulation promotion and a relatively conservative editorial signature although his papers continuedto feature flashy articles about crime, sex, and scandals along with poignant humaninterest stories and sensationalist sports reporting.In 1985, Murdoch became a naturalized U.S. citizen in New York City. By 1993 hehad purchased from the Hearst Corporation and successfully relaunched the tabloidsthe New York Post, the Star, and the Boston Herald. The 1980s and 1990s saw maximum growth for Murdoch as he bought and sold a slew of American publications.Gradually he adopted the style of each paper he purchased, seeing the value in preserving the styles of his more conventional and respected newspapers and periodicals.As of January 2000, Rupert Murdoch’s News Corporation—now a $28 billionconglomerate—controls 20th Century-Fox, the Fox broadcasting network, the FoxNews cable channel, 25 magazines, 132 newspapers (including the New York Postand the London Times), HarperCollins books, the Los Angeles Dodgers, the National Rugby League in Australia, and an assortment of other business operations.Murdoch’s empire is both respected and feared by his peers. ViacomCEO Sumner Redstone said that Murdoch “basically wants to conquerthe world.” Both Disney CEO Michael Eisner and Time Warner CEOGerald Levin mentioned Murdoch as the one media executive whomthey respect and fear the most, and whose moves they study incessantly.
Bill Gates (1955–)By the age of 13, Bill Gates was already starting his career in computers by programming his first software program. At 15, he helped establish a group of programmers in high school, who set up their school’s payroll system on computer, and
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founded Traf-O-Data, a traffic-counting systems company that was successfullymarketed to local governments. Later at Harvard University in the early 1970s,Gates developed the programming language BASIC for the first microcomputerprogramming language used on large computers. At 20 years old, he and Paul Allendropped out of Harvard and together they cofounded Microsoft in 1975.In 1981, Microsoft licensed its newly developed operating system called MSDOS to none other than International Business Machines Corporation (IBM), regarded at the time as the undisputed leader of computer technologies. For the rest ofthe 1980s, IBM and MS-DOS set the technical standard for the newly emergingpersonal computer industry. Miraculously, Gates managed to keep Microsoft frombeing swallowed up by the corporate IBM machine. His independent stance madeIBM reliant on the little upstart company for the essential software needed to operate PCs and made Gates a 31-year-old billionaire by 1986. His fortune has increased to the point that by the 1990s Bill Gates was estimated to be the wealthiestprivate individual in the history of the world.In 1999, the U.S. Justice Department’s antitrust division initiated a lawsuit againstMicrosoft charging the company with, among other technical fine points, illegally tying its Web browser to its new Windows operating systems. Gates’s many rivals, especially those out of California’s Silicon Valley, have depicted him as imposing,disingenuous, and intent on making a profit from all the electronic transactions of theworld. Meanwhile, his many defenders have long recognized his amazing businessgenius. I find it quite humorous that in his 1995 best-seller The Road Ahead he observed, “Success is a lousy teacher. It seduces smart people into thinking they can’tlose.” He may have been a bit intuitive of the current antitrust verdict declaring Microsoft to be split in two. He is of course appealing this decision.Gates is empowered by his ability to think outside the box anddiscover new ways to make computers more effective throughinnovative software and indispensable components.
Paul Allen (1953–)Paul Allen was introduced to computers as a student at Seattle’s Lakeside HighSchool in the late 1960s. Frustrated by limited access to mainframes, he and hisfriend Bill Gates dreamed of a day when there would be a miniature version onevery desktop. As a programmer at Honeywell in Boston, Allen read an advertisement for a microcomputer kit in the January 1975 issue of Popular Electronics. Heconvinced Gates to team up with him and create software for it. Intel and Motorolafollowed with more powerful microprocessors and Radio Shack, Apple, and IBMdesigned personal computers that used software designed by Allen.Allen and Bill Gates soon thereafter started a new company called Microsoft. Allenbecame the head of research and new product development, the company’s senior technology position. He championed and helped engineer many of the company’s mostsuccessful products, including MS-DOS, MS Word, Windows, and the Microsoft
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Mouse. He retains his seat on the Microsoft board and remains its second-largest stockholder. He pursues his vision through an array of handpicked, independent companies,each with its own special capabilities and culture. Allen’s team looks for establishedcompanies with proven management talent, a solid business plan, demonstrated performance, and innovative products or services that can be part of their “Wired World.”Synergy can take the form of actual joint projects, or can simply be the exchange ofideas at conferences Allen hosts for his CEOs. The cross-pollination is ad hoc and unforced. Allen believes the companies should be managed independently. “As our strategy evolves, we are pioneering a support structure that the business world hasn’t seenbefore. We’re not just breaking ground in specific technologies, but also in the way weinvest and our approach to developing these investments.”In place of the typical acquire-merge-rationalize-downsizeapproach, Allen seeks to add value by contributing his owninsights into additional uses for companies’ technologies andby exploiting potential synergy between companies.
Richard Branson (1950–)Richard Branson founded Virgin Records in 1970 as a mail-order record sales company and later opened his first record shop in London. In 1972, he decided to takematters in to his own hands and built a recording studio in Oxfordshire, then startedsigning his own handpicked artists. In 1977, Richard signed the infamous andgroundbreaking punk rock group, the Sex Pistols, after the group was turned downby every other label in Great Britain. They were a phenomenal success and put Virgin Records on the map. Over time, Virgin Records came to represent many musicsuperstars, including Steve Winwood, Paula Abdul, Phil Collins, Peter Gabriel,Bryan Ferry, Janet Jackson, and the legendary Rolling Stones. In 1992, the VirginMusic Group—record labels, music publishing, and recording studios—was sold toThorn EMI in a $1 billion deal.In 1984, Branson started a whole new venture—Virgin Atlantic Airways. Hefounded the airline on the concept of offering a competitive and high-quality upperclass and economy service. These days, it is the second largest international airlinein Great Britain.He is quoted as saying that he dropped out of school at age 15 because he wasn’tenjoying the way he was being taught. His lack of enjoyment led him to start a magazine to try to change the world for the better. That choice led him into the world ofcapitalism and he has succeeded ever since by designing superior services andproducts and taking chances.Perhaps the secret to Branson’s heroic capital conquests is his innate abilityto improve the way businesses are run. His improvements have led to hisown success and increased the standards by which his competitors do business.
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George Soros (1930–)Widely known as “the man who broke the Bank of England,” he earned international notoriety in 1992 when he speculated that the British pound, would losevalue. When the pound’s value did go down, he then repaid his loans at the reducedvalue—reaping a cool $1 billion. In its 28-year history, Soros’s Quantum investment fund—started in 1969—is universally recognized as the most successfulhedge fund ever. Soros was one of the first to use the loosely regulated realm of theisland of Curaçao as a base for his operations. He was soon a master of crosscurrency investing, which forced the rest of the investment community to recognizethe developing interdependence of the U.S. economy and geopolitical events.In early 1997, he was accused of deliberately pursuing the devaluation of Thailand’s currency, the baht, and Malaysia’s ringgit by speculating that the value ofboth currencies would drop. Soros excused himself and his company by claimingthat by the time of the devaluations, his funds had already become active buyers ofthe currencies, believing that they had already hit bottom. There are widely heldopinions in the financial community that the reason he went after and broke theBank of England in 1992 was not because he wanted to make an extra billion dollars, which he did, but mainly because he wanted his social and political positionsto be taken seriously by governments and world leaders.Since Andrew Carnegie, there hasn’t been a more flamboyant and committedphilanthropist than billionaire speculator George Soros. His methods andmorals are often the subject of extreme controversy, especially his mostrecent active support for the legalization of medical marijuana.
Anita Roddick (1943–)In 1976, a 33-year-old housewife recognized the need for natural beauty products.With a £12,000 stake, entrepreneur Anita Roddick opened the doors to her firststore, The Body Shop. Her idea quickly took off and her small shop in Brighton,England, rapidly grew into an international giant as franchising enabled hundreds ofpeople to open stores all over the world. Today, there are more than a thousand retail outlets in more than 40 countries.But Roddick’s vision was never confined to the making of millions. From the start,her slogan “Trade Not Aid” has brought her to the forefront of change. Not only hasshe fought long and hard to challenge the stereotypes perpetuated by the cosmetics industry, but Roddick also used her company to campaign in favor of animal and humanrights protection. Her devotion to social and environmental causes has helped to definethe new-age concept of corporate responsibility. To this end, The Body Shop initiated aCommunity Trade program that creates strategic trade relationships in order to fostersustainable development in communities around the world. By contracting ingredientsand accessories from socially and economically marginalized communities, she hasbeen able to generate funding for communities in dire need of support.The Body Shop’s success also lies in Roddick’s ability to develop innovative
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products exclusively found at The Body Shop. She has long sought out natural waysto clean and refresh the human body—long before the rest of the cosmetics industryever heard of it.Another part of Roddick’s success has been her dedication to including all stakeholders—employees, franchise owners, shareholders, and customers—in her socialand environmental efforts. In 1990, The Body Shop Foundation was formed as away for employees and investors to give something back to the world. Recent projects have included providing medical attention to more than 4,000 Amazonian Indians, as well as renovating orphanages in Romania and Albania. The companyeven produces an annual “Value Report”—an independently verified audit that reports on how well the company has lived up to its own promises.Anita Roddick has pioneered a new way of conducting businessand has shown the world that a company can make moneyand support ethical business practices simultaneously.
ROADMAP TO SUCCESSObjective
Course of Action
Understand theContributions ofBenjamin Graham
• Considered the father of fundamental analysis for penningtwo books: Security Analysis (1934) and The IntelligentInvestor (1949).• Began by clearly defining the word investment and setting itapart from the word speculative. This definition enabledGraham to include stocks in the category of investments, acategory formerly thought to be the primary domain of bonds.• Worked to empower his students and clients by teachingthem a systematic approach to finding undervalued stocksand bonds through quantitative analysis.• Highly recommended diversification as an investmentapproach.
Understand theContributions ofPhilip Fisher
• A great believer in the qualitative analysis of companies overthe long term.• Looked for investments that could maintain higher growthlevels than industry averages.• Honed his ability to size up a stock’s capacity to reproducecash.• Avidly watched a company’s management team andquestioned their integrity and style.• Paid close attention to what the Street had to say about acompany by listening to gossip, rumors, and personalopinions.
Understand theContributions ofWarren Buffett
• Believed in buying stock in companies that wereundervalued and hanging on to those companies untiltheir hidden value was realized.
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Understand theContributions ofCharles Schwab
• In 1974, Schwab pioneered the nation’s largest discountbrokerage firm, Charles Schwab & Company.• Recently selected as one of the seven people who mostinfluences the U.S. economy.• Believed that individuals have the ability to take control oftheir financial futures, and that investing should be a regularpart of every household’s routine.
Understand theContributions ofPeter Lynch
• Known for taking a simple approach to investing and findingcompanies that have the ability to provide superior returnsover time.• Likes to look at companies whose products you use on adaily basis.• The former manager of the Fidelity Magellan Fund.• Feels that investors should be in for the long haul and avoidtrying to time the market.
Understand theContributions ofWilliam O’Neil
•••••••••
Understand theContributions ofJohn Neff
• Disregarded popular investment philosophies and pioneeredan innovative investing approach—Measured Participation—based on a low-P/E strategy that uses fundamental analysisand common sense to locate undervalued stocks.
Understand theContributions ofLinda BradfordRaschke
• Got her start as a floor trader at the Pacific Stock Exchangebefore moving on to the Philadelphia Stock Exchange.• Honed her skills as a short-term trader by specializing inpattern recognition and technical analysis detection foroptimal entries and exits.• Claims her trades have an approximately 70% profitabilityrate.• The only woman investor featured in Jack D. Schwager’sbest-seller The New Market Wizards.
Understand theContributions ofAndrew Carnegie
• He began his fortune by investing in the new WoodruffSleeping Car Company, the original holder of the Pullmanpatents.
Founded Investor’s Business Daily newspaper.Created useful acronym: C-A-N-S-L-I-M.C stands for current quarterly earnings.A stands for annual earnings increases.N represents new products, management, and highs.S refers to supply and demand.L stands for leader or laggard.I represents institutional sponsorship.M refers to the overall current market direction.
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• Using innovative new British steelmaking processes, plusstate-of-the-art assembly techniques, Carnegie Steeldominated the American steel industry in the 1890s.• When asked his business secrets of success, he replied “Putall your eggs in one basket and then watch that basket!”• He later became a resolute philanthropist, and declared that“A man who dies rich dies disgraced.”Understand the• Rockefeller’s Standard Oil Company of Ohio established theContributions offirst major U.S. trust and set a pattern of organization forJohn D. Rockefellerother monopolies.• Caused government to enact antimonopoly laws culminatingin the passage of the Sherman Antitrust Act of 1890 by theU.S. Congress.Understand theContributions ofJ. Paul Getty
• As an independent wildcatter he worked as his owngeologist, legal adviser, drilling superintendent, explosivesexpert, and roughneck.• He later gained control of several large independent oilcompanies by relying on his own instincts, experiences, andresources learned from his wildcatting days.
Understand theContributions ofRupert Murdoch
• Created a media empire, now a $28 billion conglomerate,dominated by his trademark-style news of sex and scandal.• Disney CEO Michael Eisner, and Time Warner CEO GeraldLevin both mentioned Murdoch as the one media executivewhom they respect and fear the most and whose moves theystudy incessantly.
Understand theContributions ofBill Gates
• Programmed his first software at 13.• Developed BASIC, the first microcomputer programminglanguage at Harvard in the 1970s.• Dropped out of Harvard and cofounded Microsoft in 1975with Paul Allen.• Became a 31-year-old billionaire by 1986.• Currently appealing the U.S. Justice Department’s antitrustverdict declaring Microsoft to be split in two.
Understand theContributions ofPaul Allen
• Dropped out of Harvard and cofounded Microsoft in 1975with Bill Gates.• He helped engineer and launch MS-DOS, MS Word,Windows, and the Microsoft Mouse.• Now oversees an array of handpicked, independentcompanies, each with its own special capabilities and culture.
Understand theContributions ofRichard Branson
• Founded Virgin Records in 1970 as a mail-order recordcompany and sold it in 1992 to EMI for $1 billion.• Founded Virgin Atlantic Airways, now the second largestinternational airline in Great Britain.• Branson says he has succeeded by designing superiorservices and products and taking chances.
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Understand theContributions ofGeorge Soros
• His Quantum investment fund—started in 1969—isuniversally recognized as the most successful hedge fundever.• A master of cross-currency investing, he forced the rest of theinvestment community to recognize the developinginterdependence of the U.S. economy and geopoliticalevents.
Understand theContributions ofAnita Roddick
• Built The Body Shop up from a small shop in Brighton to asuccessful retail giant with more than 1,000 stores in 40countries.• Developed the slogan “Trade Not Aid” to pioneer a new wayof doing business that forges strategic trade relationships inorder to foster sustainable development in communitiesaround the world.• Produced innovative products found exclusively at The BodyShop that focus on natural ways to clean and refresh thehuman body.• Formed The Body Shop Foundation as a way for employees,investors, and customers to give something back to theworld.
12Taking Advantageof Market Behavior
Determining the prevailing mood of the market is the essence of successful trading.This is no easy task considering that market conditions reflect the emotions of people—confident, scared, erratic, and unpredictable. But certain basic parameters do exist. You shouldn’t short stocks in an up market, and you shouldn’t use bullish plays in adown market. “Going with the flow”