Читать книгу Supertiming: The Unique Elliott Wave System - Robert C. Beckman - Страница 13

During my lectures I often tell the story of my client in New York who parlayed a sum of 2,000 dollars, his life savings, into the sum of close to one million dollars. He had no extraordinary formula. He wasn’t a dancer who pirouetted his way around the world with a “box system”. All he did was place his total funds in the stock market whenever the yield on the Dow-Jones Industrial Averages rose to above 6 per cent. When the yield in the Dow-Jones Industrial Averages fell below 3 per cent he took all his money out of the stock market and put it in a savings account. He left his money in the savings account until the yield on the Dow-Jones Industrial Averages rose to above 6 per cent and then began the process all over again. Nothing could be simpler.

He had mastered three important principles: that of being inactive over long periods, that of consistency of approach, and the recognition of a high success-ratio criterion. Compound interest did the rest. He was a long term investor and it took him over 30 years to build his fortune. However, his method should provide an example. Even better results can be achieved with the Elliott Wave Principle if similar mental disciplines are applied.

My client was relying on the long term cyclical repetition of the yield factor. He wasn’t particularly concerned with the time frame aspect, but merely the cyclical yield pattern. A theory based on cyclical repetition will always appear somewhat strange to those versed in the traditional approach to the socio-economic-world-of-finance type problems. The economy looks gloomy so we steer clear of the stock market. The economy looks bright so we are encouraged to participate in the stock market which will supposedly reflect the economic growth of the nation. A company turns in good results so we buy the shares of that company. All of this seems to be a perfectly logical approach but for some reason, share prices have a tendency to fall after a company turns in good profits. Furthermore, it is a fact that when the economies of various countries look their most promising, the stock market is usually on the brink of a disastrous decline.