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provide ample opportunity to execute successful trades. In fact, there will be some set-ups that are so clear that the entry point for the trade will be obvious.

My last point that I want to leave you with is that you control your own destiny. If you want to be a great trader, you have to be your own strongest critic. Furthermore, you must be willing to invest the time to review your work, your skills and improve your abilities.

The first step is to record the experience in a stock joumal. I cant emphasize the importance of this practice, especially in the initial stages of leaming. You will not improve your trading skills unless you record your thoughts and feelings during the experience. The next step is to print out a stock chart of a potential set-up and label each trade, exactly where you bought and sold. Finally, it is essential to maintain a record of your total performance.

After recording this information, you must review this material. Your stock joumal and trading records are the most honest assessment of your trading behavior. From this information, you can discover your strengths and weaknesses. If you are doing well, you might want to record the things that you are doing on a consistent basis that are yielding good results. If your trading is not successful, especially after sustaining several consecutive losers, you might want to stop trading and reassess your actions. After recognizing your mistakes, you can design strategies to correct these flaws.

The most important reason to review your work is that it makes you "face yourself" By frequently reviewing your trades, you can develop an honest assessment of your progress. It can be difficult to review your actual trading record. However, it makes you accept full responsibility for actions.

Finally, it is important to keep an open mind, hungry to leam more. There are always new relationships that can be leamed. Perhaps, you will discover a new area of harmonic price action that goes beyond this material? I am personally "experimenting" with new techniques and applications of the harmonic methods to analyze price action more thoroughly. Most important, I strive to continually leam as much as I can to perfect my trading.

In my opinion, the only way to be successfiil in the stock market is through harmonic analysis. These methods are the most effective means for identifying profitable opportunities. As you begin to master these methods in the years to come, you will be amazed how simple trading really is. And, I guarantee that you will never - ever - look at stocks the same way again!



Appendix

Multi-Harmonic Charts

The following examples of multi-harmonic charts illustrate the frequency of these pattems and Fibonacci numbers. It is not unusual to have charts that possess several pattems within one chart. Although these are usually longer-term charts (over a year), the price action in these examples tmly substantiates the value of these techniques.

Although these examples might seem complex with many Fibonacci numbers and pattems on one chart, it is important to examine the significant trend changes that occurred after these set-ups were complete. In fact, if you study these examples closely, you will see how the price action seems to form one pattem after another. Another consideration to keep in mind is how these pattems reveal substantial changes in the price action. As each pattem completes, the stock changes its course. In this maimer, the pattems clearly indicate a stocks future price action.

These examples are very complex. However, these charts can help you increase your perception to observe similar harmonic price action in other stocks. Although such price action does not occur in every stock, identifying this price action in certain stocks will provide assurance that future harmonic set-ups will be valid. For example, if a stock possesses several pattems within one chart, it is possible to assume that future pattems will yield valid reversals. Although such reasoning is not 100% guaranteed, the probability for future harmonic action is definitely greater in these situations.



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