(Written end September, posted Oct 5th, 2001.)

The market requires constant practice.

First, to study history, the charts and the past action; then to practice buying and selling, and your own psychological reactions to this in the present; so that we may be prepared for the future. Then it’s a matter of using our education and study, for profit. Take ABC for example.

ABC, from a business point of view has some interesting possibilities given its cement background, its activities in the north of Australia, and the looming Darwin rail project. So the company goes on our watch list. Is there an opportune time to buy ? Use our charting knowledge. We know that tops become bottoms, often at mid points. We know, due to history, buying on panic days, (being used to taking stop losses beforehand when everyone else is selling often cause they did not take their stops), and we can also know in advance from our Gann study, the probable time in the year to be extra careful. (Refer posting ‘panic days’ for more on that.)

ABC represented an opportunity this month, as described above. I am not saying this is always easy; as Jules has said often enough, the left hand side of the chart is a damn sight easier than the right hand side; however it is through experience of past patterns that we learn how the market works, because basically the future patterns will just repeat the past.