The Five Sacred Cows Terminator (Profitunity - Bill Williams)

As a newbie in market, we think that market can give us a big return in short time, we just listen what the expert say, we read such a book to defeat the market, we always hope that our stock increasing, etc. But, everybody can’t get the return likewise.There are some constraints why everybody can’t get the return likewise, because they are thinking like other investor/traders.

You can break the cycle of failure by recognizing the things that cause failure.You probably dream about what every other investor/traders desires, which is success in the markets. However, when you trade, you come away with fewer goodies than you had counted on. Before you to become a consistent winner trader, you must have some basic fundamental truth. This basic fundamental can completely change your trading future in a way that it seem extreme. Profitunity call them as The Five Sacred Cows Terminators.
There is the Five Sacred Cows Terminator:

1. Don’t listen to the popular experts
Remember that financial writers know as little as and perhaps even less than you do about the markets. They are paid by the word and not by truth. As stated earlier, if they really understood the markets, they could make many times more money trading than they do writing about trading.
Ask yourself a question: Why do none of these analysts and commentators ever show their personal trading track records? Could it be because they are not personally able to make profits in the markets? If they were good at trading, they probably would be eager to tell you how much profit they are making.

2. There is no such thing as bullish/bearish Consensus
Remember that the market’s primary job is to instantly find that exact place where there is an equal disagreement on value and an agreement on price.

3. There is no such thing as Oversold/Overbought
If there is no such thing as bullish or bearish consensus, then it logically follows that there cannot be any such thing as an oversold or overbought condition. How can it be measured when the markets are specifically designed to destroy any oversold or overbought situations in microseconds, well before the traders see it on their screens and days before they start talking about it?

4. Most Money management suggestion are ineffective
Most of us have had the experience of using a wallet stop, only to see the market turn around and leave us with a much smaller equity than we would have had if we had traded market movement. That kind of protective thinking comes directly from fear, and in the markets,fear never wins in the overall picture. Our only hope for consistent profits is to get in synch with the market and attune our own personal strategy and energy to that of the market.

5. Common formulas for profitable trading do not work
Two oftenrepeated formulas for successful trading are (1) buy low and sell high and (2) to make profits you must trade with the trend. Those two statements are absolutely incompatible. If you buy low or sell high, you are standing in the way of the trend, not following it. And if you follow the trend, you are not buying low or selling high. The Profitunity strategy is to know when to use either one of the two approaches. There are times when it is best to trade against the trend and other times when you want to go with the trend. The choice of which strategy to use is determined by the market itself. Mother Market always tells us exactly what we should do. And when we do not, the market will tell us where we went wrong and what we have to do to correct the error and get back into the profit-making mode.