one of my trader friends has asked me the following
" dear js, yesterday the market was 80 points down and today the market is 80 points up.
in this case, how can a retail trader like us can judge the trend?
yesterday when the market was down 80 points, we were feeling that the trend is down!
suddenly, today, when the market is 80 points up we feel that the trend is up!!
how the trend is changing overnight?!!!"
--
i am sure this must be the dilemma of many others.
i have a few things to say regarding this
1. the very first thing that came to my mind when i read this sms on my cell was
"this thing will keep on happening with the retail trader till he or she learns to understand the operator"
2. when we say trend, what is the period of the trend we have in mind?
do we mean trend of the day or trend of the week or trend of the month or trend of the semester or year?
all these trends can be different!
there are trend inside trends inside bigger trends......
if a "trend" seems to change in 12 hours should we take it is as the change of the monthly trend?
i leave the answer to you.
3. volatility and fluctutations are as important in teh market as are the revolutions for a wheel.
no fluctuation, no market. period.
as part of our mental seasoning and toughness and training, a trader has to go thru and get used to these things.
this is just like the somersalts and turns a figther pilot goes thruwhile flying at mach speeds. during these somersaults, sometimes the sky is above the pilot's head, sometimes below, sometimes to left, sometimes to right........
but a trained pilot always knows the reality.
whatever be the volatility or flucutation, a trader should have some holding point, some method, some indicators etc. to understand where is the sky!
the trouble is that many traders get into trading without mastering a method and other essentials.
trading is the easiest business in the world - both to lose money as well as to gain money....depending upon
whether you are flying the aircraft or the aircraft is flying you!
" dear js, yesterday the market was 80 points down and today the market is 80 points up.
in this case, how can a retail trader like us can judge the trend?
yesterday when the market was down 80 points, we were feeling that the trend is down!
suddenly, today, when the market is 80 points up we feel that the trend is up!!
how the trend is changing overnight?!!!"
--
i am sure this must be the dilemma of many others.
i have a few things to say regarding this
1. the very first thing that came to my mind when i read this sms on my cell was
"this thing will keep on happening with the retail trader till he or she learns to understand the operator"
2. when we say trend, what is the period of the trend we have in mind?
do we mean trend of the day or trend of the week or trend of the month or trend of the semester or year?
all these trends can be different!
there are trend inside trends inside bigger trends......
if a "trend" seems to change in 12 hours should we take it is as the change of the monthly trend?
i leave the answer to you.
3. volatility and fluctutations are as important in teh market as are the revolutions for a wheel.
no fluctuation, no market. period.
as part of our mental seasoning and toughness and training, a trader has to go thru and get used to these things.
this is just like the somersalts and turns a figther pilot goes thruwhile flying at mach speeds. during these somersaults, sometimes the sky is above the pilot's head, sometimes below, sometimes to left, sometimes to right........
but a trained pilot always knows the reality.
whatever be the volatility or flucutation, a trader should have some holding point, some method, some indicators etc. to understand where is the sky!
the trouble is that many traders get into trading without mastering a method and other essentials.
trading is the easiest business in the world - both to lose money as well as to gain money....depending upon
whether you are flying the aircraft or the aircraft is flying you!
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