yep but that does not mean it is easy because the clear set ups, which set up the emotionally easy trades, are counter trend, and so a trap, if the trader does not scalp out. this is why a new trader will scalp out all his trades and if he does this he will be profitable, if his entries are technically good. once you realise that fading the clear set ups, lead to much bigger and powerful moves.....you are well on the way to be a great trader
i am not sure traders think so deeply.... i did not : just entered because some book said i should enter there. i believe that many moves happen not because of liquidity-money being thrown at market- but because of the opposite-bids disappearing or asks disappearing. many people believe that if something has gone up 100% it was bought with huge money.....this is not true. i have seen spreads of 30-40% in illiquid stocks.
i have a question for you the same one i put to another sponsor but did not receive a reply. this is out of thread so apologies: but,i first read my first book in 1994 and i still do not know this terminology it is often said that markets test a resistance. now what does it mean when it is said that the test failed...[1] the market broke through the resistance or [2] the resistance held.
Hello All- All trades are placed because a trader believes other traders will do something after they place their position. It is this and this alone that generates moves in the market. Not True! Not for me. I could care less what others do after I buy, the important thing is to be first, or as close to first as possible. And be true to your ideals. I'll give you an example in 2018 I bought a tiny energy stock because I REALLY believed in what they were doing at the time. It wasn't just a call box by the side of the road, it was a call box that could save a life by the side of the road and never needed any power because it was solar operated. That stock THis year went to $22. I bought in in 2018 for $2. All 2019 nobody wanted it and all 2020 nobody wanted it... only this year. So why did I buy. I like to save the world. I like to buy stocks that in some way add to a better world. That is my guideline and why I buy. If others don't want to save the world now.. they may change their view-- I will not. So Point 1> Don't act like a fan aimlessly swinging- have a point of view and stick with it. Point 2 > Stocks all have lives of their own. They have " births " they arrive on the scene with fanfare IPO's or they slide in backwards SPACs they have " Sweet Sixteens " They " mature " and they have burn out cycles and newer prettier stocks come by and attract attention. In a way that is exactly where we are now in the market. Everyone seems to want a pretty stock and they are only so many pretty, sexy stocks-- just like girls. So if you imagine that every stock has a life cycle then where you buy in that cycle is The Art of The Game. Sometimes you are placing a bet at birth.. but most times you are waiting for that first budding of sexuality when the stock first gets out on it's own and begins to get noticed. You want The Lolita Factor... You want to be in a pretty stock as it gets noticed. That's research, That's timing That's intuition. It's all within you and matters not what others say or do. YOU LEAD THE MARKET BECAUSE YOU ARE THINKING AHEAD OF THE MARKET.. no matter how small a player you may be.~stoney
Dear Padu now what does it mean when it is said that the test failed...[1] the market broke through the resistance or [2] the resistance held. Stocks are like children they test your patience and they wear you down. A child will ask you over and over can I go to the party during Covid (resistance) and You say No. You say no over and over and then finally you capitulate and say yes. (breakout). Lets turn the situation around your life is a mess. You have had your business slow to the point of going bankrupt. You have done everything the government has asked of you but still you have limitations on your business and now they say to you Sure you can stay open but now you have to wear two masks not one... They pushed you, they pushed you and now you close. It was too much it was the straw that broke the camels back<-- One of the great phrases... a small problem if layed upon many others can break you. And for the market it is the same way, the market discounts what it has in it's sites and never reacts well to surprises.~stoney