Mantra 2: You do not need to know what happens in the market to make money.
To play mantra 1 and 2 You must first create a defined edge with a positive expectancy. [just like the casino. that is they know that no matter how many string of reds or blacks goes against them they always win. ] Therefore, whilst anything can happen in the market at anytime (and you do not know what this is), probability dictates that for an edge there is a random distribution between wins and losses. Therefore, if your edge is designed in such a way where your wins are twice as much as your losses you will always win this game.
Depending on analyst reports, hoping wishing and praying or saying things like this stock will not double and that will halve compared to this is just guess work. It is called unconscious incompetence. In other words if you knew these things for sure why not put the house on it?
You can read all about these rules and principles in the book Trading in the Zone by Mark Douglas
NEA Price at posting:
$2.38 Sentiment: Sell Disclosure: Not Held
