Obligated Condition

If during the waiting period in which the market rate of the stock reaches its price level of the top band, a rupture sign of the support level of the sub channel of evolution occurred, along with the expiry of positive Directional Movement, it should be interpreted as a sign of peremptory without discussion. This indicator will be defined like the guardian angel system. This is the instruction that will avoid us from falling in the spirals of loss hoping or desiring, like humans that we are, for the market to revert and not selling. The proposed method helps tot the profits to run and cuts the loss very quickly, with an objective analysis. To maintain this attitude, a firmly convinced person with character and training is required in order to follow the principles faithfully and in a consequent way.

General comments
We must take into account that our own purpose is to follow the movements of the market caused by clever fundamentalists. This type of analysis will not be considered a complement of the decision to buy, information of fundamental analysis, like for example, the relation of price / profit. Even though this relation is sometimes higher then the recommended, defying “logic”, it should be bought anyways if the indicators and the price take ascending inertia. It should be the indicators making the decisions and not subjective interpretation. Even if a procedure for buying and selling of a stock has been established, one should not confuse the urge with suicidal obstinacy at the time of applying it. The decision process should be accommodated despite its firmness, in a sort of continual readaptation. A new quick decision, a change of course, can often save a situation. In the end, it is not a science, it’s an art. The art of a good stock market player consists in knowing which is the right moment to act in one way or another. Despite all that has been previously said, it is expected for errors to occur. But the best attitude that should be had in face of errors is to be horrified about making a mistake, to make a mistake before doing it. However, it is necessary to accept the error after having made one even though the hardest thing is to accept a loss in the stock market. When there is a loss, it simply has to be forgotten and it is necessary to start over from zero. It is somewhat like a surgery. It is necessary to amputate the infected area before it is too late. One must free themselves from the disease of wanting to recover the money that has been lost. This is a difficult thing to accept and there are very few speculators that achieve acting this way. One of the most indispensable things for success is to cultivate the subtle art of forgetting failures and looking towards the future. Those that do not learn to turn the page usually stay trapped by the spectrum of their previous mistakes. Each failure has a precious teaching. Besides it is easier to learn from a failure than from a success if one tries to see which was the reason for the failure and analyzes his ideas, as well as his methods and concepts in the right way.