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70 the short cut, and they no longer have to do all of the work that is necessary to make the good trades. They can just use this one tool. Always keep in mind that if it was that easy everyone would be rich. Remember that if this was a book on how to play golf, you would not expect that, by just reading it, you could go out and play on the professional tour. First you have to practice. You have to learn not to choke on that 3 foot put. After you have put in the time and work, and studied numerous charts, the you will know those setups we have discussed, and you will have the confidence and knowledge necessary to trade profitably. The purpose of this book is to teach you how to locate the price and time setups which have a high probability of being the start of a fast movement. If you have the discipline to only look for trades during those time setups, and not attempt to trade every movement in the market, your trading will be quite profitable. Always have a plan. The opportunities are many in the markets, and you will miss many. But do not worry or fret about missing an opportunity, as another will be along shortly. Trade f rom a plan and do not react to the market s. Knowledge, discipline, courage and hard work are the requirements of skillful trading, and in this text I have laid out much of the knowledge necessary. Now it is up to you to acquire the discipline, courage and to do the hours of study and work. Go over the lessons, learn the ideas, apply them to your own work. Build your foundation and you will nave success.
AUBURN MOTORS "The chart enclosed on Auburn Motors has all of the natural important angles place on it which shows the natural resistance angles obtained by dividing up the circle of 360 degrees. We have used only the 45 degree angles from tops and bottoms, the 90 degree angle and the horizontal angle, which is eoual to an angle of 90 degrees. Every stock squares itself accoraing to price and time and when it breaks out of the square one way or the other continues to move in the same direction until it reaches another important 45 degree angle or resistance point according to the time or price. We use the angles of 11 1/4, 22 1/2, 33 3/4, 45. 56 1/4, 60, 67 1/2, 78 3/4, 90 and so forth. Then draw the 45 clegree diagonally where the time crosses the 45 degree angle from either the important top or bottom. The crossing of tvK> right angles is very important for a change in trend as we will show on the example of Auburn Motors. Auburn Motors made the extreme high on April 1, 1930, at 263 3/4; then made a second high on April 10th and a third final high on April 16, 1930, when the price reached 262 3/4. We draw the 45 degree angle from the top of April 1st and another 45 degree angle from the last top made on April 16th; then number the days across and draw the 45 degree angles bisecting the 45 degree angles from the top. [1} Example: April I5th the 45 degree angle from April 1st and the 45 degree angle from 11 1/4 days over crossed at the exact point where Auburn mede the low price at this time. In other words on April 15th Auburn made bottom on the two 45 degree angles; then rallied to April 16th, [2} broke the 45 degree angle and the trend turned down. [3} Note 23 degrees or days over where we reach the angle of 22 1/2 degrees and that Auburn made low on the 22nd day, rallied only one day. then broke the day angle or time angle of 33 3/4; [4] next broke the more important 45 degree angle, showing that it was getting weaker all the time. [5] It made bottom at 180 on the 27th day from the top. 180 is always an important resistance point because it is one-half of the circle of 360 degrees. Auburn rallied to 201. The next important resistance level is 202 1/2, or 22 1/2 degrees added to 180. Auburn at this top was just under the 45 degree angle. [6] Next it broke the 45 degree angle from the day angle of 56 1/4. [7} May 20th, declined to 150, another important natural angle because it is 5/12 of the circle. [8} This bottom was reached on the 40th market day. Auburn thsn rallied to 172 on the 45th market day, which is very important for a change in trend and top. [9] Nest it broke the 45 degree angle drawn from the bottom at 150; continued down broke the 45 degree time angle from 78 3/4; [10] then broke the 45 degree angle from 90 timing angle. 90 is
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