Lesson 10: The Market is always Right
What you believed about value and your reason for believing it may be of the highest quality, but if the market doesn't share your belief it doesn't really matter how right You are based on your superior reasoning process or what you believe to be the quality of your information, because prices are going to go in the direction of the greatest force.
The point here is that right and wrong as you may traditionally think of them don't exist in the Market environment. Academic, credentials, degrees, reputation, even a high I.Q. Don't make you right in this environment as they would in society. Movement in the markets creates opportunity to make money and making money in the markets is what trading is all about.
Each of you as individual traders will define what market conditions represents enough of an opportunity to put on a trade for whatever reason suit him or her. If the net result of the collective actions of all the traders participating in a move that us against your position, then they're right and you're the one who is losing money.
The markets are never wrong in what it does
"it just is."
So what do you do you are asking ?
1 as an individual interacting you must
1st : observer to perceive opportunity
2nd as a trader decide what is more important
Being right or making money because the two are no ways compatible or consistent with one another
3 master the techniques and the money will automatically follow
4: you have to believe 1 to 3 exist for you. And you only.
No comments:
Post a Comment