im trying to rewire myself to be able to read charts better so i can understand what other traders are doing and what is moving the price etc is there a main idea behind trader logic that will allow me to start developing my own by looking at the chart and forming my own conclusions about what is happening? few examples of what im asking just because few people here never read the question before answering and derail my posts. after a big spike there will be alot of traders trapped and will be trying to exit at every pull up on the way down until most of them exit at a loss which then removes the selling pressure and new buyers come in which pushes the price back up with little resistance and the new cycle begins of trapping bulls. when a wedge forms there are buyers waiting to enter the trade at different points. and depending on the price of stock there will be traders of different level participating in that trade. penny stock will most likely have chatroom pumpers that will create a false breakout and selloff which will be slower than higher priced stocks 5-15 dollar range will possibly create a false breakout also but for different reason and depending on time of the day if morning session there will be alot of scalpers like warrior trading and tim sykes club where the drop always seems to be very fast because they all react to that false breakout the same way by hitting that sell button the second it goes south. and then reenter the trade when selloff stops. but they also buy at earlier stage with more risk because they are obviously more experienced. so those two examples i understand because someone explained it to me but im trying to understadn the underlying concept of this where i would be able to figure out on my own what is moving the chart who is stuck where and who is about to make a move at what point in the chart etc maybe a few examples of different situations would be cool to break down
when you feel good you will lose cause you are with the news minions when you feel afraid and confused you will miss the best opportunities know beforehand from exhaustive studying to act not react to price clues
You are chasing your own tail. Trying to "figure out" what others are "doing" or "their situation", is like trying to figure out which cup of water came from which land in the ocean. Instead of trying to "figure out", consider trying to come up with a situation and response. You see this, do that. Then see if it works or why it does not. Repeat until you find something that works. You might say, that is what you are doing. But the difference is the process of finding out what works and what does not, WILL give you insight on how the market works because you are looking at concrete detail. While what you are doing is trying correlate hearsay, and conjecture with what will work. Good luck.
I don't think at all of where retail is going to get screwed, I have studied all the beginners books on entries. Retail don't like waiting !!!! They love breakouts of trendlines and triangles. I LOVE PLAYING YOYO. I wait for price to come down to trendline and buy it there, take profit 1-2 ticks beyond breakout then know where retail has stops and I buy it again, can do this a 3rd time. Risk 3-4 ticks and target 1-4 points. It not perfect, has losses but are small. Volume moves price.
That’s pretty simple … trade a delayed chart along side the real time one. You have to find the bias 60/40 up or down ? Then wait for a good reward to risk entry. According to past market behavior. You gotta align with the market, Not with other traders. Try to lose small and avoid costly mistakes. Improve the worst case as time goes by. Take your profit when you’re done. Trade less. Size more. Be aware of incoming news. Don’t freak out when price ticks against you. You can double your acc on a monthly basis by averaging 1ES point a day. Use scale in & out. Keep it simple. A trader think in terms of expected value … Is it worth putting my money at risk ? Will it statistically improve my PnL ? Get the data, the strategy and the execution you need to improve your bottom line. Find ways to spend (risk) less and earn more.
how do you think like a trader? -A better trading approach is to think like a trading software. No emotions, every trade is just a transaction.
I love Handles123 answer. After all things considered, it really is just a waiting game. I forgot who said this, but it's still 100% true...“The market is a device for transferring money from the impatient to the patient.”
If anyone figured it out, they wouldn't be here to tell you about it. Man, you're overanalyzing. This will only lead to analysis paralysis. What you want to do, at least in the early stage of the game (which I believe is where you are), is to stick to one strategy and work that thing until you know it like the back of your hand. This also applies to the instrument you trade. Don't jump from one stock to another. Stick to one stock until you figured out all its kinks and quirks.
same as a gambler. put a value on something and if you can buy it for less or sell it for more then do it