Stock Market Is A Giant

Stock Market Is A Giant

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.

  1. There are very few entry signals. The markets simply appear to be noisy, volatile, and random.
  2. At the end of the day, the trading day price action only makes sense in retrospect.
  3. You can look brilliant in the morning and stupid in the afternoon.
  4. The trend is not your friend because it changes on a daily basis.
  5. Profits must be taken at every opportunity before the market changes its mind.
  6. You begin to believe that a small loss is a good day.
  7. Long and short signals occur on the same day, whereas they used to occur weeks or months apart.
  8. Buying the dip is no longer profitable, breakouts fail, and buyers and holders no longer appear to be geniuses.
  9. Down days are so severe that you double-check your account to ensure that you are only in cash.
  10. Your ability to deal with losses and drawdowns becomes the most important aspect of your trading strategy.
  11. 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.

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Keep Calm and Manage Risk In Stock Market


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