Page 697 - How to Make Money in Stocks Trilogy

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• C HAP T E R •

White Belt: Understanding the

Trend and Market Timing

“He who knows when he can fight and when he cannot,
will be victorious.”

—SUN TZU

For a martial artist, bowing is a display of respect. An investor must bow to the
market and respect the overall trend. Contrary to popular belief, you can
time the stock market.
Every investor would like it if the stock market went up all the time, but
that’s not the way market cycles work. There are times to be in the market
to maximize your gains, and there are times when you should step to the
sidelines to avoid losses.

Understanding the Trend
It’s important to understand whether the stock market is in an uptrend or a
downtrend. Investing in an uptrending market is the most important factor
for achieving gains.

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