Investing with Volume Analysis: Identify, Follow, and Profit from Trends

1. Two Perspectives of Market Analysis

“This is one of the most important points I’ve had to learn. For me, at least, ‘why’ is the most expensive and least valuable information. When you get ‘why’ wrong (and act accordingly), you lose lots of money. You only can know ‘why’ for sure after the fact (when it is useless). You gotta learn to live with the reality that there are things that are beyond the individual’s ken. The search for ‘why,’ whether right or wrong, can just as easily lead you to irrelevancies, or, worse yet, to valid data that will not impact on the market. The best analog is arguing with your wife. Being right is often totally valueless if not counterproductive.”

—Mike Epstein (1931–2009) Quoted on June 21, 2006

Building a Firm ...