The Game Theory Logic Of Investing - Winning Version

I know you have heard this before. But this article will be based on a saving law, essentially. This law that this article is based essentially on is: You make your own interest by what you save from what you gain, not what you invest desperately to gain more. That means patient saving is more important than gambling and winning, essentially.

Let me explain: You must save some of what you gain from investments, not to create compound interest, but to create interest in the purest sense. For you cannot depend on compound interest if you gamble all that you make from your investments without saving some capital from previous investments to create genuine interest. That means, forego the "instant big killings" by investing with sense.

When investing, you cannot have a genuine gambler mentality. Not at all, you must have a strategic game winning mentality which involves definitely patience, gained understanding and tolerance for all situations ultimately making them all, good or bad, work for you. For a genuine gambling mentality leads to the "poor house". Playing the game genuinely strategically leads to riches of every sort that counts. When I say "play" or "playing" strategically, I mean this: Patiently develop riches, work on understanding and control with tolerance and active hard, but smart work.

Gambling at its worst is a mystical activity that depends on depending on "big killing winnings", not patient development. Gambling at its best is still bad, because you depend on luck to win, not skill, patience or knowledge. So, even if you do win, you do not really win with any genuine knowledge or realistic expectations of what it takes to keep or repeat your winnings.

The best way to play is a dependence on cause, effect and good judgement. The more you depend on these, the better your returns will ultimately be. So, I also mean enjoyably and richly working when I say or write the word "play" also. When you lose though, do not lose your investment principal, that is crossing into the world of gambling when you invest the last of that desperately.

Platform compressions are ideal entries for higher profits with short term trading. When looking at stocks for entries, study the candlestick patterns using Relational Analysis™ and that is the relationship of the candlesticks within the pattern. Stocks under Dark Pool quiet accumulation tend to form Platforms. Dark Pools create this sideways pattern with controlled bracketed orders that buy incrementally over time. The goal of the Dark Pools is not to disturb price. As they conclude their buying for that period, High Frequency Traders find out and can push price up with momentum. Prior to those moves up, the candlestick patterns compress. Those Platform compressions are ideal entries for Swing and Momentum traders.

A compression is a tight consolidation of candlesticks rather than a wider Platform. It doesn't matter where the compression forms. It can be at the low or high of the Platform range. The compression pattern often precedes a decisive breakout and run or gap up. Then the stock resumes its sideways pattern as Dark Pools start buying again at the next level.

Platform compressions are ideal entries that form at or near the end of the Platform, and are often missed by individual traders. Bollinger Bands can be used to assist in the identification of the compression. These expanding and contracting bands provide excellent analysis for sideways patterns. Entries must be made prior to the breakout due to the rising energy that develops as price compresses.

One aspect of Bollinger Bands to remember is that the center line for a strong compression will be equal distance from the outer bands. In a strong compression, the center line on Bollinger Bands will move right through the center of the candlesticks. If the center line is below or above, then the pattern is not as strong or indicative.

Learning to identify compressions in Platforms is a Spatial Pattern Recognition Skill™ that helps swing and momentum traders trade Platform market conditions. Sideways markets occur 50-60% of the time and these are the market conditions that tend to have individual traders whipsawed out of trades constantly.