Stock Market Is A Giant. Rather than trading ability, the market environment, whether trending, range bound, or volatile, determines whether our method makes or loses money. We can have a perfectly good system and still lose money if our method is not viable. A trader should receive fewer signals in a market that is not conducive to our system, but the few signals we do receive will almost certainly result in losses until the market begins to trend or establish a range. Until then, it’s the market, not you. The market is simply not interested in your trading method, system, or plan.
- There are very few entry signals. The markets simply appear to be noisy, volatile, and random.
- At the end of the day, the trading day price action only makes sense in retrospect.
- You can look brilliant in the morning and stupid in the afternoon.
- The trend is not your friend because it changes on a daily basis.
- Profits must be taken at every opportunity before the market changes its mind.
- You begin to believe that a small loss is a good day.
- Long and short signals occur on the same day, whereas they used to occur weeks or months apart.
- Buying the dip is no longer profitable, breakouts fail, and buyers and holders no longer appear to be geniuses.
- Down days are so severe that you double-check your account to ensure that you are only in cash.
- Your ability to deal with losses and drawdowns becomes the most important aspect of your trading strategy.
- Do not trade price action that does not correspond to your signals. Be patient and wait for the right price action for you.
These points shows that Stock Market Is A Giant and we can predict very less about it.
Bottom Line
Stock market is a giant and we cannot predict and time it. Before entering in the stock market we should aware of all the risks associated with stock market.