Random Market Thoughts

Over the weekend, I have run over tons of historic chart to exam my trading system and hope to discover some truth and laws of trading and investment. Below is a brief list:

• In order to earn big, you need to be able to tolerate some market fluctuations. No bullish run is forming a line. So is the bearish move.
• The key is to identify the meaningful market corrections.
• These market corrections could lead to a trend reversal. You need to know when a market correction evolves into a trend reversal.
• Big trend changes slowly. If you want to earn big, you need to give your stocks and the market time to make your big profits.
• The key is to sit tight when you are correct. However, sitting tight doesn't mean doing nothing. You still need to closely watch the market development and understand its stages. You also need to know the signs for a meaningful market correction. More important, you need to know the signs for a market trend reversal.
• The rules could be simple. But it really requires a deep understanding the market, especially how the market motion is dynamically evolved.