Investor Warren Buffet famously advised, “Be greedy when people are fearful, and fearful when people are greedy.” Many investors say the safest and most potentially profitable assets to buy are the ones that nobody likes. This is a mistake. Classic cars are negatively correlated to downward moves in the major indexes, as evidenced during the crisis of 2008 to 2011, so performance is driven by a contrarian view. Buy the asset everyone loves, and love the assets you own.
The world of technical analysis is complex, but with a working knowledge can be applied to virtually any market. Here we introduce you to 10 important rules of technical trading first described by technical trading legend John J. Murphy.