It’s all quite deceptive, really – I mean, they are called the markets, after all, and things are bought and sold there and not much else happens at all.  So how can the markets not be about price, when price is all there is?

Here is my solution.  The stock market is not the place for bargain hunting.  It’s not a shop that has discounts. It’s not about value at all – it’s about price movement.  It’s all in the moves.   The trick is to discover just how you want the price action to look before you take the plunge and risk your cash.

This is by no means an easy thing to do.  It can be extremely hard to buy a share that has just risen 30% from its lows, because we automatically tell ourselves that we missed a bargain.  However, it’s vitally important to hear what that kind of price action is telling us. To me, that share is hollering that something very cool is going on.  People are buying it – in fact way more people are buying it than selling it.  And if there are more buyers than sellers, it’s gonna go up.

Now that is simple.