how to approach trading in general
well u need to emphasize that each market and each new event is different then the one before!no market is the same as the one before or the next to come... there is no black and white!however the underlying market mechanics and principles dont change , they are always the same..the market reflects those principles just in a different way each time ... based on liquidtity,volatility, average
volume etc. it just comes in differnt shapes forms and size but the mechanics behind what u see are still the same..
and how to interpret the current market action.. is just a matter of experience.. and the basic logics i describe on this blog
u need to know that setups and trading opportunitys wont play out picture perfect all the time.. as there is no exact situation then the one before ,even if it looks like it is in first place .. there is always an uncertainty ,any thig can happen within the next few minutes or seconds or even a blink of an eye.
u never gonna know if someone throws a big size bet and scares the market etc..or something similar crazy thing happening ,but u have to act in such a situation the right way and this is a just a matter of reading the action correctly , with the basic laws in the back of your head , it will sink in and any new situation will be read correctly and therfeore the action u take or not , will be because of the current sitaution and not because of pre biased views or actions.. u will adobt t each new situation ...
the market is a ever changing beast u cant force into simple patterns.. wich do occure from time to time but thats just a part of that chaotic behaviour... notice its not random.. its chaotic if u know that there is a cause for each move u know what might be the next most likely action to take place.. but its not 100% sure... nothing is but we are not here to predict the future , but to put as the odds in our favour and participate.. what the market does next is not in our hands , but when to exit is in our hands and that should be as soon as there is a change in behaviour in progress , wich will develpoe again depending on the actual situation.. u will notice that sometingis cooking or doesent seems rihht .. for a open position etc.. as u have watched the market till this hapened..
aswell as u need to know that u have to find the perfect market situation in order to decide if its tradeable or not..ie.. u need to see if the markets talks to you.. or not..
u know ,there are bad and good market conditions and u simple have to decide if the current market is tradeable or not depending on alot of factors , wich includes your approach on trading wich have to be met in order to be successfully aswell as the market ,believe it or not , will often throw out almost crytsall clear signals in wich driection it will go or if a certain level will hold or break , and then u have to trade the obvious scenarios .. where the market litteraly begs you to take a certain trade .. this is where patience pays out .
only trade the obvious! if in doubt stay out.. the market can act pretty unpredictable from time to time ;).. and if u cant see anything or read the market comfortable.. then by all means stay out!
u will know when to trade or when not or when the market gets freaky.. etc..
and u will know when u can act uppon the action as u have interpreted .. then u can take a trade.. and even then the tide can change within a second.. so u have to stay flexible.. either scratch or change direction of a trade (wich would be more advanced)
so basically
u have to get the actual market situation right and the conditions to your trading style have to be matched u need to get the odds in your favour .. (the more the better)..
u have to trade the edges not in bewteen , only on key levels
u need to trade a size where you feel confident...
Stay Tuned for Breakouts , Bounces and more... ;)
well u need to emphasize that each market and each new event is different then the one before!no market is the same as the one before or the next to come... there is no black and white!however the underlying market mechanics and principles dont change , they are always the same..the market reflects those principles just in a different way each time ... based on liquidtity,volatility, average
volume etc. it just comes in differnt shapes forms and size but the mechanics behind what u see are still the same..
and how to interpret the current market action.. is just a matter of experience.. and the basic logics i describe on this blog
u need to know that setups and trading opportunitys wont play out picture perfect all the time.. as there is no exact situation then the one before ,even if it looks like it is in first place .. there is always an uncertainty ,any thig can happen within the next few minutes or seconds or even a blink of an eye.
u never gonna know if someone throws a big size bet and scares the market etc..or something similar crazy thing happening ,but u have to act in such a situation the right way and this is a just a matter of reading the action correctly , with the basic laws in the back of your head , it will sink in and any new situation will be read correctly and therfeore the action u take or not , will be because of the current sitaution and not because of pre biased views or actions.. u will adobt t each new situation ...
the market is a ever changing beast u cant force into simple patterns.. wich do occure from time to time but thats just a part of that chaotic behaviour... notice its not random.. its chaotic if u know that there is a cause for each move u know what might be the next most likely action to take place.. but its not 100% sure... nothing is but we are not here to predict the future , but to put as the odds in our favour and participate.. what the market does next is not in our hands , but when to exit is in our hands and that should be as soon as there is a change in behaviour in progress , wich will develpoe again depending on the actual situation.. u will notice that sometingis cooking or doesent seems rihht .. for a open position etc.. as u have watched the market till this hapened..
aswell as u need to know that u have to find the perfect market situation in order to decide if its tradeable or not..ie.. u need to see if the markets talks to you.. or not..
u know ,there are bad and good market conditions and u simple have to decide if the current market is tradeable or not depending on alot of factors , wich includes your approach on trading wich have to be met in order to be successfully aswell as the market ,believe it or not , will often throw out almost crytsall clear signals in wich driection it will go or if a certain level will hold or break , and then u have to trade the obvious scenarios .. where the market litteraly begs you to take a certain trade .. this is where patience pays out .
only trade the obvious! if in doubt stay out.. the market can act pretty unpredictable from time to time ;).. and if u cant see anything or read the market comfortable.. then by all means stay out!
u will know when to trade or when not or when the market gets freaky.. etc..
and u will know when u can act uppon the action as u have interpreted .. then u can take a trade.. and even then the tide can change within a second.. so u have to stay flexible.. either scratch or change direction of a trade (wich would be more advanced)
so basically
u have to get the actual market situation right and the conditions to your trading style have to be matched u need to get the odds in your favour .. (the more the better)..
u have to trade the edges not in bewteen , only on key levels
u need to trade a size where you feel confident...
Stay Tuned for Breakouts , Bounces and more... ;)
