Page 307 - THE MARKET WHISPERER

THE MARKET WHISPERER 30 3

The Fear of Clicking the Button

A common phenomenon among new traders is the fear of clicking the

button. The price breaks out and new traders watch it, paralyzed, trying to
gain confidence while the stock rises cent by cent. By the time new traders
buy, they will usually pay too high a price. It is a familiar phenomenon. I

was there, and extricated myself. No doubt you will experience it too.

Summary of the Buy Process

During consolidation, you do not want to see a particular high volume.
You want to try and predict the breakout and buy, if possible, a fraction
beforehand. After the breakout, you want to see increasing volume. Volume
that is dying down indicates loss of interest, and raises the danger of a
failed breakout.