The Case for Candlesticks
Congratulations. By purchasing this book, you have declared that you will no longer fall for the Wall Street myth of “buy and hold.” While there are investments that perform well over longer periods, blindly holding on to stocks or commodities during steep declines is not necessary or wise.
In this chapter, you will
• Uncover the Wall Street fallacy of “buy and hold”
• Recognize the value of becoming defensive when market conditions warrant
• Understand that trader psychology moves markets
• Learn a brief history of candlestick charting
Buy and Hold Leads to Unnecessary Losses
The buy-and-hold methodology benefited from the greatest bull market in U.S. history, 1982–2000. Even then, ...