• Volume is used to Confirm or Reject price direction, Not as a Timing signal
• Don't wait for Volume before making your purchases. The only thing that tells us when to buy is Price Action
• Volume often come After the stock already experienced a meaningful move

• Whether a stock declines on Low or Heavy Volume is not the point
• Stocks can experience dramatic declines in a period where there is simple absence of Demand and moderate Supply. Stocks decline because there are No Buyers
• Prices decline to levels that will again attract Buying

• When prices are moving lower, you should not be holding
• Don't fall for reassuring words from analysts or CEO. The collective voice of all market participants is the only voice you should listen to, that is the Market

• The longer-term timeframe action is what draws our Attention to the stock, but the low-risk entry comes from a deeper study of the auction process on the Shorter-term timeframe

• Only Price Action tells us when to buy/ sell. Moving Averages are mere inflection points that draw our attention to a price level so we can understand where a potential shift in Supply / Demand dynamics is likely to take place

• The Direction of key Moving Averages is more important than a Close Above or Below them
• It is a common trap for fresh Buyers to become excited as a stock crosses above a declining key MA. These rally attempts will typically fail until the key MAs flattens out or begins to turn higher
• As long as the LT MA continues trend lower, all rallies should be viewed with an eye of suspicion
• There are no Magic MAs which work all the time
• Experienced traders study MAs to help determine the unfolding Psychological shifts in market Sentiment

• The further along the stock is in its decline, the stronger bounces become (as Shorters cover and bargainers are attracted)

• Correctly interpreting Human Nature and Crowd Behavior is really what understanding Technical Analysis is all about

Professionals Anticipate - Amateur React
• The Smart Money attempts to position its holdings to take advantage of Emotional responders to the News when it is released
• It is the goal of Institutions to accumulate shares before the "good news" is known to the majority of participants so they can be in a position to sell shares as price and volume expand
• When Positive News is released, it is usually the Public who buys from Pros; When Negative News is released, Pros are often the buyers from the emotional Public
• Inexperienced and uneducated market participants (Dumb Money) are more likely to be motivated by News headlines, chat room gossip etc.

• If it is hard to Buy, it is going Higher
• If it is hard to Sell, it is going Lower

There are essentially 2 forms of Technical Analysis
• one is based on an ability to read charts or use of indicators to Predict market direction
• a second type is based on Reacting to Price Action. Instead of trying to predict market direction, Trend Following Reacts to movements whenever they occur

• Trading profitably is about mathematical Expectation
• Knowing yourself is more important than what you know

• When we say that trading is mostly Psychological and Emotional, your sense of Self-awareness is the only tool that you have
• With 2/3 of the Crowd being controlled by Emotions they cannot identify, you can define part of your trading Edge immediately by developing your sense of Self-awareness
• Self-knowledge and Self-awareness are most important assets as a Trader, more than any Technical ability

• Reluctance and Regret have killed more Traders than Black Swans

• How do you know you are Wrong? Easy. You're Losing money on the position

• Part of your growth involves Surrendering to the facts that you have Zero Control over what happens or the results from all your hard work
• Surrendering is knowing that things can happen in the markets for reasons that you don't understand
• Surrendering is knowing that you're still powerful because you can come back and trade tomorrow
• Surrendering mean that you are willing emotionally accept small losses in the short term because you surrender to the fact that it is impossible for you to know all the possibilities of why a position goes against you

• Ed Seykota never would get out of anything unless the Trend changed
• He had the ability to contain his feelings when a position went against him
• "Well, markets go up. Markets go down. Today, they're down."

• Paul Tudor Jones said, "Prices move first and the Fundamentals follow."

• "There are no External solution to your Internal problems."
• If you're having a tough time trading, chances are, you don't need to learn more about the markets. You need to Study Yourself.

• When the Fundamentals and Technicals are in alignment, you cannot have enough of a position on

• Risk is the possibility of Loss.
• Risk is unavoidable, the best you can do is to Manage the risk
• The only way to Control risk is to Exit
• Risk management is to direct and control the possibility of loss