"Successful market timing depends upon learning the patterns of crowd behavior. By anticipating the crowd, you can avoid becoming a part of it."
This quote is from the opening paragraphs of the free Elliott Wave Basic Tutorial. It’s critical to your understanding of how markets really work.
You might wonder what’s so wrong with being part of the crowd. Unfortunately, the crowd usually shows up after a majority of the market move has occurred, when it feels ‘safe’ to join in the group. Then the crowd hangs on as the market turns and the losses pile up. Think back to 2008-2009. How many people do you know that rode the market right back down and got out closer to the bottom than the top?
To be a successful individual investor, you must understand what it means to take risks when the probabilities are with you and shun risk when they’re not. Robert Prechter’s method of analysis, the Elliott Wave Principle, can help you do just that.
I encourage you to learn more about this method in Elliott Wave International’s free Basic Tutorial. It’s broken up into 10 lessons across 50 pages, so it’s easy to read and review at your leisure.
About the Publisher, Elliott Wave International
Founded in 1979 by Robert R. Prechter Jr., Elliott Wave International (EWI) is the world’s largest market forecasting firm. Its staff of full-time analysts provides 24-hour-a-day market analysis to institutional and private around the world.