Prediction or Swimming with the directional trend.

If one can make forecast or prediction where the market is heading, how can one benefit from such action?

How can one weather the volatility storm till the prediction come to past?

It is a fact that we need to accept and admit that such prediction has 3 possible outcomes

1) Overshoot the target

2) Right on the target 

3) Undershoot the target

The fact remains how can swim with the volatility and benefit from it?

One can make the prediction and unable to maneuver the volatility along the way. This ability of one to adapt into the treacherous journey will ultimately determine and decide if one falls off the path or reach victory.

What if one does not know how to predict but can comfortably swim with the flow, using the force of the directional flow to navigate effortlessly.

Instead one should focus on how to capitalize on the directional force. 

The next question is when will one be able to know the market has reach its target?

A simple answer is when the price fails to achieve higher ground in an uptrend or a lower level in a down trend. 

To me prediction using charts is a bonus. What ultimately decide the winner or the loser is NOT prediction but ones ability to flow with the directional price trend.

The priority is NOT to count the seed in the apple, since one will never be able to count the apple in the seed.

I started on the understanding that we use chart to PREDICT the target(s). Much later as one "matures" with the market(s), I also matures into "follow the trend first" and "prediction" a BONUS.

It took me many years to seriously understand and appreciate the adage. . . .

 

THE TREND IS YOUR FRIEND ... ALWAYS FOLLOW THE TREND  

 

When one finally understand and appreciate that prediction is a BONUS, than one has reach the ultimate level of a chart analyst.

At this level, one has the ability to withstand short term volatility as long as the longer term directional trend remains intact.