Many people upon discovering the Elliott wave principle have a reaction that goes something like this:
They experience initial feelings of amazement and excitement thinking here’s something that can predict markets for them and they can make a big profit! This is followed by further excitement as the wave principle is learned and absorbed. The next phase may be disappointment that the wave principle does not work perfectly every time- sometimes the wave count you trade on turns out to be not the right one and losses are incurred. The last phase may be disillusionment as one discovers the gap between initial expectations and reality.
The Elliott wave principle can predict markets and it’s very good at doing this but it’s not always perfect. Why?
First, it is unreasonable to expect perfection from any analysis method. The market analysis method that is 100% correct all the time does not exist. The method or analyst that never places a losing trade does not exist and never will. Losses and mistakes are part of the trading game. Traders who consistently make profits accept this. As long as profits outweigh losses you’re winning. To expect perfection is unrealistic.
