Translation under review. The illustrations are still in Portuguese.
"A chart isn't an ethereal drawing. A chart has a meaning."
You stopped in the middle of this chapter.
Someone knocked on the door. A comparison to start. When you see a chart of Brazil's population, someone from IBGE (Brazil's census bureau) went door to door and counted. Nobody guessed. The price chart of a is the same: it moved because someone bought or sold at a price.
Only the price. The analyst says one thing. The newspaper says another. The president, the candidate, the company owner, everyone has an opinion. The chart has no opinion. It only shows whether the price went up or down.
Politics doesn't matter, interest rates don't matter, the news doesn't matter. The chart is either going down or going up.
— Sam
Do you need to know why? If people are buying, there's a reason. Do we need to know what it is? No. Nobody knows everything that's happening around the whole world. We can know if it's going up or down. And that's our job.
The patterns are people. The drawings that repeat on the chart aren't magic. They're people who are scared, people who are excited, people who are waiting. Since people don't change, the drawings repeat, in any market and on any timeframe.
Words in this chapter
Share (stock)
A small piece of a real company. If the company grows, the piece tends to be worth more.
