Exercising Patience: The Key to Any Investment Success
In This Chapter
Understanding the charts
Peeking into the world of day-trading
Examining “investment pornography”
Treating time as your friend, not your enemy
The tortoise and the hare
Now, dear reader, we get to the part of this book you’ve been waiting for: How to get rich quick using ETFs! The trick is understanding charting patterns.
Let me explain what I mean.
The chart in Figure 17-1 captures a hypothetical daily pricing pattern for a hypothetical ETF that we will give the hypothetical ticker symbol UGH. What you see at point A is a major reversal pattern known to technical analysts as the “Head-and-Shoulders.” Notice that as the price dips below the “Neckline” and then rises with simultaneous “Increased Volume” that the “Reversal” of the “Trend” begins to manifest. Buy! Buy!! Within a short time, however, as you can clearly see at point B, a “Minor Top” forms indicating an “Upward Trend” reinforced by the classic ...