When the pattern of a reliable average is favorable under The Wave Principle, follow the recommendations below:
A) Select the groups which perform in harmony with the average;
B) Then select stocks that move in sympathy with these groups;
C) Always choose stocks that are constantly active, medium priced and seasoned leaders;
D) Diversify your funds; i.e., employ more or less an equal number of dollars in from five to ten stocks, not more
than one stock of a group. Trading in less than five stocks is preferable to more than ten stocks.
(R.N. Elliott - Educational Bullettin December 1939)
Any device employed to predict the action of something else is unrealible. Opinion is invariably divided because it is based on different view points. It is humanly impossible for anyone to consolidate and correctly evaluate the effect when mixing war news, economics and politics.
(R.N. Elliott - Educational Bullettin 1942)