Dear Friends,
Markets everywhere in the world have mind of their own, something like how our mind functions, Markets function on the collective 'minds' of the participants. Hence like us, who behave logically, illogically, rationally, irrationally, emotionally, upbeat, depressed etc, markets also behave so.
Now if the Market has a Mind (from collective sources) then what we try doing all the times is to judge the thought process of the Market. Simultaneously at the same time there is another mind which is at work i.e. our own. And it is this mind that a novice trader never notices.
We all have a character, since our childhood, what we are, how we think, react, behave - in general. So either we are miser, generous, cunning, humble, fearful, foolhardy, gutsy, speculative, calculative, trustworthy, disloyal, wanderer, etc etc etc. If we look back in our own history we can build up a personality of our own selves by putting the pieces of our own behaviour during various events (good, bad, moderate) of our lives.
To earn from the market (which has it's own 'personality' like us),
we need to fit our personality to the market and not vice-aversa. It is something like there are two random particles moving in the air, you hope that both will collide with each other. So what is more easier, studying our personality is much easier than judging the market's mind.
So eventually as a successful trader progresses in his life, we find different types of traders, some who try to pick the bottom, some who wait for reversal and some who wait for confirmation of the trend. All are there, but ultimately they have fit their ownself to the market. They trade ONLY when they think that their mind is in sync with the market's mind. The outcome of such trading (where you trade only if the market provides opportunities suiting your personality) is you take less trades, the trades are very high probable trades and outcome almost in most cases is favourble. I would simply put it like this, calculate the amount you have made, if you were to exclude all your loss making trades til date. To give benefit of doubt to random profits, even if you divide this amount by half you would still be a happy man. So know yourself, strive for high probable trades, even higher and even higher. (Did anyone hear me say...Six Sigma...
, noway I can produce those concepts here atleast)
Regards,i
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Hi tnsn 2345
I slowly get nervy about your post's.
In the traders Den, it is every thing, you try to post. Even on a much higher level. There is nothing to top as every thing was already posted once in the past.
Why don't you once post a whole thought process, when you make any trade by your self and this now and not after one hundert words?
We then can leave, sorry to say, mama thoughts and start ultimately with what is going on in reality, and not in thoughts.
Dan Hmm and very sorry, but enough is enough
I also had to grove up once and I was told it the same way I do it to you now.
