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"Uptrends have higher highs and higher lows; downtrends have lower lows and lower highs. The question arises: How many higher highs for an uptrend and how many lower lows for a downtrend? I prefer to see at least two higher highs for an uptrend and two lower lows for a downtrend.
For and uptrend, if I see only one higher high and higher low, I rate that as only a ‘potential uptrend”. Naturally, in a downtrend, I want to see at least two lower lows; one lower low, lower high… I rate a potential downtrend."
~ Ray Barros
Book: The Nature of Trends:
Strategies and Concepts for Successful Investing and Trading
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"His money making style was about mammoth home runs and many small strikeouts. If there was a ‘secret’, he knew that you had to be able accept losses both psychologically and physiologically."
~ Michael W. Covel
Author, The Complete Turtle Trader
The Legend, the Lessons, the Results
On
Richard Dennis’ Trading Style
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“I remember trading in the summer of 1998. That summer saw the lowest commodity prices in decades. I was buying 30-year lows in hogs and grains, thinking they could not go any lower, only to watch them go to 40-year lows. I was trying to pick a bottom in crude oil at $17, $16, $15, $14, $13, $12 a barrel before giving up.
The drop in price, in stocks in 2000 is another example: When stocks went from $200 to $100, people thought they were cheap. When they dropped to $50, people bought more. At $20, they thought, ‘Wow, what a bargain.” at $5 they gave it one last shot, thinking the market had gone down enough and was way over-done. One year later many of these stocks were trading below $5 per share with little hope of recovering. The big lesson I learned here was that a market is never too cheap or too dear. Trends will go on as long as they want to, not to a price one thinks is too cheap. A trader needs to pay attention to price action, not opinions.“
~ Marcel Link
Excerpt From Book: High Probability Trading
Chapter 6: Trading With The Trend
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