tailieunhanh - No bull investing straightforward advice_5

Tham khảo tài liệu 'no bull investing straightforward advice_5', tài chính - ngân hàng, đầu tư chứng khoán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | THE GENERAL INVESTMENT MODEL 83 time maximizing your profits. Perhaps I am overstating my case but I will remind you that unless you learn the GIM and the timing method presented in Chapter 7 you will likely fail in your efforts to become financially independent. The GIM is divided into five parts 1. Historical pattern 2. Expectation 3. Confirmation 4. Action 5. Management While this model may not sound exciting to you at first I think you ll change your mind when you see the flowchart of the GIM in Figure and a few examples. Each step in the GIM is dependent on the successful completion of the previous step. If any step in the model is skipped or incorrect the entire model will fail and you will lose money. If you correctly follow each step you may still lose money but your odds of making money are considerably higher than if you FIGURE How the General Investment Method Flows Historical Pattern Leads to an Expectation That Must Be Confirmed HISTORY EXPECTATION CONFIRMATION After Which Action Is Taken and Risks Are Managed ACTION MANAGEMENT 84 NO BULL INVESTING do not follow the model at all. Each step in the model is fully explained below. Now let s take a look at the aspects of the GIM. Remember to keep an open mind and focus on the logic of what I m saying not on the ultimate application. And while you are doing this I suggest that you clear your mind of what you may have learned elsewhere because it will only confuse you. Historical Pattern What do I mean when I talk about a historical pattern The simple answer is that every investment every stock every market real estate and relationships all have patterns. What is a pattern There are literally hundreds of patterns in our daily lives and in the financial markets. Such patterns consist of repetitive price cycles seasonality day-of-week relationships and market indicators. As an investor you will want to follow the most basic patterns however as a preliminary example consider the cyclical pattern in the

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