Only Price Pays!
I have been saying “Only Price Pays!” for nearly thirty years. It started out as a reminder to myself not to get caught up in the news, stories, and constant hype in the stock market. All too often, I would read some great news about a stock, buy the stock, and not sell it when it declined in price. I would stay in the stock because I had misplaced confidence that it would recover when the market realized how good the news was. This mistake cost me a lot of money early in my career, and I vowed to sell when price action told me to. To simplify the concept, I created the phrase, “only price pays!”. Over the last 30 years, I have repeated this phrase dozens of times in my books, thousands of times in my videos, on Twitter, and in live presentations.
It has become my catchphrase.
We make or lose money in the markets based on price action alone; the reasons why other people buy or sell are of interest, but it is the correct identification of strong price-based trades that is the key to successful swing trades.
Brian Shannon, CMT