And what did we say a while ago price above everything and a price above everything else which means that if now if something a piece of information World War three is something significant enough for you to need to act on the price will communicate that to you in the form of prices breaking below your support it’s happened to.
Me a lot of times last year 2016 if I recall brexit.
Happened brexit happened are you guys familiar with this anyone familiar.
With UK and now it’s that it was leaving I had.
A picture-perfect entry in an update and we’re.
Already up five to seven percent and during that they.
When the brexit was announced I saw Europe down five six seven percent in one day US futures down seven percent and what did i do i liquidated price i liquidated my possessions prematurely even before prices broke down bow as most of you know what happened after that after a one day two days care prices went all the way higher I think if I’m not mistaken that was from prices going all the way down to six thousand one hundred brexit happened around six.
Eight seven six eight two seven two but prices rallied all the way to 8,000 137 I missed.
Half of the move right and a lot of other instances I can also share with you a lot of other similar instances in.
Similar stocks where I’ve allowed external pressures affect my own decision-making but the reason why the reason why you want to be able to follow price and for me when I look.
At how I am investor in my own identity I really stick to the discipline of following price above everything and anyone else why is that it’s very important in the stock.
Market for you to have some sort of a system some sort of a philosophy I don’t care if you don’t follow technical analysis if you want any value investing warren buffett that’s fine with me but the point I want to make is.
Is that you need to be able to have a system because if you don’t stand for anything if you don’t.
Have a system that will help you keep you firmly planted then you’ll fall for anything that comes your.
My case over the past years.
I’ve learned to follow price and allow price to submit.
Myself to price to humble myself to price and an hour price to lead me and not my own urges not my own emotions not my own opinions or left and right if those are actually valid concerns that the market will.
Tell me in the form of how price responds to whatever information is triggering people to make those decisions so uptrend lines as long as you’re uptrend line does not break you want.
To be able to hold on to your position downtrend lines are supposed to uptrend lines they connect the highest the major highs of your downtrend resistance areas and last these sideways trends connect the highs and the lows what somebody.
Introduced a very important terms at this point what do you call the term what do you call what’s the term that’s used for the line that connects the lows of your uptrend it’s called your support line the line that connects the highest of your uptrend or the highest of your downtrend or.
Your resistance line now in the same way you connect a red line that connects the highest of your.