Guiding Principles

A guiding principle of ewsp500 is that truthful things are found through the “Inductive Learning” process, and not the “Deductive” approach. The inductive process of learning itself follows a pattern. The first step is the “observation” of things, looking at and gathering the facts and/or the data. Next “reflections” are made based upon the facts and/or data in order to “gain insight and/or an understanding”, (connecting the dots). Then based upon the observation and reflection of things “a rule and/or a principle is found and identified”. The “Inductive Learning” process happens to also be the “Scientific Method” of learning as well. In order to qualify as a rule or a principle it must be seen over and over again without exception. It will not depend upon the observer for it to be true. It is true in and of itself and is true regardless if anyone ever takes notice of it. In other words “it is how it works”. We at ewsp500 did not enter our study of the markets claiming we know anything. That would be the deductive approach, that is to say “I have a premise I want to prove”. We are aware of the old saying that “even a broken clock will tell the right time twice a day”. We are not looking for broken clocks that may be right some of the time. At ewsp500 we observe what the markets do, and they teach us how they work. We then make certain observations, and conclude from them, certain rules and principles in order to guide the choices we make. In other words, we check our egos at the door and look to see what “right” looks like. This is exactly how the Elliott Wave Theory was originally found. R. N. Elliott discovered the principles at work. He did not create the principles, he simply identified them, and so we at ewsp500 continue in this process of identifying principles at work.

A guiding principle of ewsp500 is the conviction that “Right” is all that matters in this game. Not only do we work on forecasting the S&P 500 but we also trade the S&P 500, it is required. So figuring out what “right” looks like really matters. This is not to say that the forecasts made in this website, (ewsp500) are sure trades with guaranteed results, but it is the aim to be correct so that we can benefit our subscribers. Trading the markets only serves to force the analyst to get sharper and to stay sharper. Making the right call becomes critical, and figuring out what “right” looks like is the actual difference between a real win versus a real loss.

A guiding principle of ewsp500 is that being biased does not produce good results. Analysts are human too, and as such we will see the glass either half empty or half full. The ability to be fair and un-biased when it comes to making a sound and well thought-out good faith judgment in forecasting the markets is critical. The first step in dealing with this problem is to be both aware of it, and accept it because it is true. The next step is to keep the facts and data before the analyst so as to let them tell us what the “best right call” looks like. We realize that some of our subscribers will be buying the market, some will be selling the market, and some may be looking to get back in the market at any given time. Our job here at ewsp500 is to just call it as we see it, and we will leave it to the subscriber to make their own choices. Because of the need to remain as unbiased as possible, we at ewsp500 will have very little direct contact with our subscribers. We will work at keeping an arms-length distance between ourselves and the user of this information. We have found over time that it helps to produce better results. We have also found that the environment, or the group, in which one is situated is also critical in one’s ability to remain objective. In the “Members Only” section and under the “Theory on why most Elliott Technicians are Bearish” (found in the Coaching Tips section) we provide some thoughts on this historical dilemma.

A guiding principle of ewsp500 is that skill and an attention to details are both critical in forecasting the Markets. This principle is due to our awareness of the frustration others have in figuring out how to use and trade the Elliott Wave Principle. The statement, “people who practice the Elliott Wave Principle are always going back over their work and are changing their wave count” is a real issue to confront and deal with for both the analyst and the user of the information. The analyst needs to face the problem head on. The analyst needs to examine why this is happening, just as a trader would review a past trade, asking what was right about the trade and what was wrong. Was it due to not paying enough attention to the details? Maybe it was due to a lack of information so it was just too early to make a good call, but nonetheless call was made, or forced. This is where the skill level of the analyst becomes critical. We know that it is not easy work, and we at ewsp500 have learned not to judge others and their work However, the goal still remains the same, to improve our game here at ewsp500. For the user, always remember that when an analyst is forecasting anything, even the weather for that matter, they are taking all they see, applying it to all that they know, and are projecting into the future their best call. These are events that have not yet taken place. Nobody is 100% accurate all the time no matter how good they are or claim to be.

A guiding principle of ewsp500 is that hard work pays off. We take our role as Financial Market Price Forecaster very seriously. We know it can be an important too for some of our users trading the markets. We also believe however, that a wave count is only part of knowing when to enter and exit the markets. What you may think is a completed wave or trend may be just a pause in the markets with more to come in the same direction. This is why we recommend it be, at most, only a part of a trader’s decision making process, and not the sole basis for making a choice. Our work here at ewsp500 can also be very enjoyable. It is our passion and driving force here at ewsp500 to take a bunch of lines on a screen and produce a forecast that proves to be correct for our subscribers.