This three-video series demolishes the widely held notion that news drives the markets and provides a basis for using Elliott wave analysis in your own trading and investing decisions.
For over ten decades, the mainstream financial world has embraced the view that external news events drive trend changes in the markets. In less than ten minutes, EWI's Senior Tutorial Instructor Wayne Gorman shatters that very idea into a fine dust, swept away into thin air.
In part one of this three-part video series, Wayne first assesses the pitfalls of relying on macroeconomic models to forecast; namely: "An investor is lured into the market at just the worst time, when it's time to sell, and forced out just at the best time to buy."
Wayne recalls this expression from a famous, Nobel Prize winning economist:
"Economic reasoning will be of no value in cases of uncertainty."
And he offers this response:
"But isn't that what we have in financial markets: cases of uncertainty? We need a different type of reasoning, one that will help us to avoid the pitfalls shown on the previous charts. That's why the Wave Principle is so important. It offers a unique perspective and a market discipline of rules and guidelines that help investors avoid buying at tops and liquidating at bottoms. It helps to explain and understand trends before they happen."
The flaw in Economic 101, cause-and-effect theory is one of the easiest things to prove. But it's also one of the hardest things for many investors to accept. Now is the time to do so through the Elliott Wave Crash Course video series.
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Wayne Gorman is head of EWI's Educational Resources. With more than 30 years of experience as a risk manager and trader, he began his career at Citibank where he managed trading positions in money markets and derivatives. He traded full time with his own capital for more than four years before joining Elliott Wave International.