I guess the hottest news in everybody conversation today is the stock market. Just last month, almost all stocks were up every single day, and 1 month later, stocks falls like a waterfall. It breaks every single investor heart with each passing day.

All thanks to this correction, I learnt some correction signs that can help me identify the change of trends in future.

Firstly, If you see a stock high and its closing price is significanty lower. If its not obvious, then its not significant. And it must be the all time high.

Next, you will notice the next 2- 3 days no matter how the market move, it does not break out from that all time high, and mostly it will be going side way or downway in the next 2 day.

Then, you will notice most of the stocks that been running high start drifting away or downward bit by bit, you know its almost about time,PLEASE CUT LOSS.!!

All these symptoms are preparing for a good change in trend, and when you see you 20 day moving average cut down and through 50 and 100MA, please buy a short warrant and collect your money during the down market.

Sounds easy? wait till you conqueror your own emotion before all these plans will be allow to fall in plans. All those who trader frequently will understand that the greatest battle lies within. And for those who wishes to know more about how the market inside out, read this book : Reminiscences of a Stock Operator