The objective in the market was *not to be always right*, (because, no
body can always predict right, ...ever)
but to *make big money* when you were *right*.
and *always cut short the loss* when you were *wrong*.
Widhie !!! wrote:
"Early in my studies, I had a friend who used more than 100 indicators
to analyze the stock market. At first, I envied his superior knowledge,
but eventually I came to feel sorry for him: He was always
confused. I finally figured out that he simply had too much information.
At any given time, only one or two points were vital, and the rest just
served to divert his attention to unimportant and contradictory data. He
had never learned that the secret to a clear and accurate picture of the
market is finding the few truly important pieces of information and
downplaying or discarding everything else."
- Michael McDonald in "Predict market swings with technical analysis"