Patrice R.B. / NEoWave Editor / 10 Minute Read
What's the difference between Elliott Wave trading and Neely River Trading?
Based on 40 years of Wave forecasting and trading experience, Glenn Neely addresses this question. And his answer may surprise you!
Glenn Neely's advanced Wave analysis techniques (NEoWave forecasting) and his unique, proven approach to trading (Neely River Trading technology) have evolved over 40 years of real-world forecasting and trading experience. As you may know, Glenn Neely is internationally regarded as a highly experienced Wave analyst and forecastor in the Elliott Wave community. Yet over the decades - as he sought greater trading profits - he came to a shocking realization. In his words, "It was important to remove forecasting from the trading process as much as possible, if not completely."
This astonishing realization brought forth Mr. Neely's extremely insightful revelation - and now proven approach - to real-world trading that reaps results. Instead of pursuing Elliott Wave Trading like other Wave theory forecasters and analysts, Glenn Neely developed his unique Neely River Trading technology. The following paragraphs step through Mr. Neely's reasoning and shine a light on this frequently asked question.
First, it's helpful to recognize the difference between forecasting and trading.
To offer a bit of perspective on Glenn Neely's realization, it's helpful to keep in mind the significant difference between forecasting and trading.
- Orthodox Elliott Wave forecasting and NEoWave's advanced Wave forecasting are excellent forecasting tools (or approaches) that give you an idea about direction, magnitude, and duration. They are extremely useful forecasting tools that offer general direction rather than bottom-line trading specifics. They do not provide a clear indication of specific entries, stops, and targets. Think of it this way: Wave theory can be useful for warning you of major turns in a market and major risk factors, but for day-to-day trading, it's not the best way to make money.
- Neely River Trading technology is a better tool (or approach) for trading, because it enables you to determine actual entry points and stop placements. That's why, over the decades of conducting real-world trades, Glenn Neely realized he needed something else that would ensure profitable trading, something in addition to Wave theory. Neely River Trading is the "missing ingredient," providing indicators regarding HOW and WHEN to trade a market. It's important to follow a logical, rational, mathematically designed process that enables you to manage profits and losses, so your losing positions never overwhelm your profitable positions. This enables you to achieve your ONE goal when trading: Make money.
So, what's the difference between Elliott Wave trading and Neely River Trading technology?
In Glenn Neely's many years of experience, he has conclusively determined that Elliott Wave Trading will not empower you to reap greater results in your portfolio. He often says, simply: "The goal is to make money." For better profits, he has found that Neely River Trading technology wins the game.
Neely River Trading is a comprehensive trading technology that, unlike Wave theory, focuses on trading behavior and risk management techniques, rather than forecasting. In his 12-week Neely River Trading Course, Mr. Neely personally teaches students the fundamentals of Neely River. They find this strategic approach fundamentally alters their perspective on markets AND their ability to improve their bottom line.
In this excerpt from one of his most popular recorded interviews, Glenn Neely discusses Neely River Trading technology
In his own words, Mr. Neely explains Neely River Trading techology - a completely different paradigm than Elliott Wave trading approaches.
Think about this analogy: If you're in a boat on a river, you don't predict where the ocean is. You don't predict which way the water is flowing, You just observe. It's plain as day. You just look at it.
With Neely River Trading, you observe the direction or flow of the market just by carefully looking at it. You know what the direction is. You don't necessarily know exactly how long it's going to take to get wherever it's going to go.
You don't even necessarily know how far the market is going to go, but you know how to manage yourself, just like you would know in a river how to manage the boat to avoid the side of the river, sandbars, or rocks. Just by looking, carefully observing, and responding, you know how to manage and maneuver. That's what Neely River Trading technology is about.
It's how to manage and maneuver in a real-world trading environment, NOT with the assumption that you KNOW where it's going or how much money you're going to make - but what to do until it gets where it's going. It's a completely opposite approach to the way most people deal with markets.
In the first 15 to 20 years of my career, I began to realize that forecasting is the reason most people don't make money trading. They're focused on this hope and dream of all the money they might make INSTEAD of focusing on how much money they might lose if they're wrong.
When your focus is only on what you might make, you tend to ignore losses. You'll risk more, and a few really big losses will wipe out your account. If you're not focused on how much you're losing and only on the hope you're going to become a millionaire over a few trades, then you're not really focusing on what's important to survive.
Survival is the name of the game.
It started to dawn on me that the majority of the world focuses on the wrong thing, which is trying to predict what's going to happen, which then gets them emotionally involved in this theoretical future of them making a lot of money. You can't trade or invest as if THIS ONE TIME is going to be the time you make tons of money. If you put everything on the line and you're wrong, it's all gone.
The goal of Neely River is to get out of that forecasting, belief-driven, Las Vegas kind of mentality where you put up a little and make a lot. Everyone believes forecasting is the answer to making money trading or investing. It's my belief and (from actual practice) my certain position that this is not correct. I'm introducing an entirely different kind of philosophy or new paradigm to trading that has not existed before.
Neely River Trading technology is NOT Wave Theory trading, because you're not trying to predict what's going to happen. You're just dealing with the evidence that you have and deciding how to maneuver and position yourself, and move stocks based on concepts that are more observational than anticipatory.
It has taken me more than a decade to devise a way of looking at markets, observing price action, and reacting to reality instead of anticipating the future. Neely River is a very different approach.
Glenn Neely
Listen to a 32-minute interview (or read the full transcript)
