April 26, 2010. By Susan C. Walker

How do you choose one lesson from a basic tutorial that is chock-full of excellent information about Elliott wave analysis? You could browse through all 50 sections distributed over 10 lessons. Or you could do what some people do when they open a dictionary: let the book fall open and point your finger at a word. Sometimes you learn more from a random search than a deliberate one.

That’s exactly how I chose this excerpt from EWI’s Basic Tutorial to show how clear the writing and illustrations are. The one best place to start learning about wave analysis is this online tutorial, which is available to all Club EWI members — a membership that is free and that brings you many resources about the kind of technical analysis and forecasting that we do here at Elliott Wave International.

The topic that my electronic finger pointed to online when I opened the online Basic Tutorial was Lesson 6.2: Channeling Technique. These four graphs and the accompanying explanation give a tantalizing taste of what you can learn when you take The EWI Basic Tutorial.

* * * * *

Read the rest of this entry »

By Elliott Wave International

Let’s begin with a paradox: The one constant in our society is dramatic change. This is the main reason why projecting present conditions into the future often fails.

“If someone had asked you in 1972 to project the future of China, would anyone have said, in a single generation, they will be more productive than the United States and be a highly capitalist country?

“Project the U.S. space program in 1969, in fact many people did — there are plenty of papers you can read from 1969 to 1970 saying, well, it’s obvious at this pace we’ll both have colonies on the Moon very soon and we’ll have men on Mars…

“One could just as well ask someone to project, say, the Roman stock market in 100 A.D. I doubt if you’d have found anyone who said, well, it’s essentially going to go to zero.”

– Robert Prechter at the London School of Economics, lecture “Toward a New Science of Social Prediction.”

Read the rest of this entry »

Paper trading is only useful for the testing of your methodology.
March 11, 2010
By Editorial Staff

This is an excerpt from Elliott Wave International’s free Club EWI resource, “What a Trader Really Needs to be Successful” – a classic Special Report by EWI’s president Robert Prechter.

… 3. Experience. Some people advocate “paper trading” as a learning tool. Paper trading is useful for the testing of methodology, but it is of no value in learning about trading. In fact, it can be detrimental, by imbuing the novice with a false sense of security in “knowing” that he has successfully paper traded the past six months, thus believing that the next six months with real money will be no different. In fact, nothing could be further from the truth. Why?

Read the rest of this entry »