Ignore the Ignorant
We always hear and read about how hard it is for ordinary people to actively trade the markets and make money themselves.
That they shouldn't even bother trying because they'll probably lose more than if they just bought and held some sort of investment.
This is the biggest load of self defeatist bullshit that could possibly be said. If someone tells you this, then they're an ignorant bitter who doesn't have the mental fortitude to do what has to be done to make it in this game.
Plain and simple.
If you're willing to put the time and effort into developing the risk management procedures that work for you, then you will make it as a trader.
Busting the Myth
No, markets don't always make sense.
One of the biggest myths going around both within and outside trading circles, is that markets are rational and make sense.
They aren't. But most importantly, we don't want them to be
Traders actually make money because markets don't make sense. Yes, their irrationality makes them profitable.
At any place or any time, marekts can make seemingly random moves for absolutely no rational reason. They make moves that just don't make sense.
Sometimes markets go up when all signs point to them going down and likewise, sometimes markets go down when all signs point to them going up.
It is what it is.
It's absolutely nosensical to assume that just because the market did one thing, that it has to make sense and do something that corresponds to that move.
Using Chart Art
While technical analysis is in my opinion, the number one weapon in a trader's arsenal, it is not because it can help you predict what a market will do next.
As we've talked about at length, markets are irrational beings and if someone tells you that they can predict the future, then you should turn around and run a mile in the opposite direction.
Technical analysis is the number one weapon in a trader's arsenal because it helps a trader manage their risk.
That's all.
Saying that technical analysis predicts what is going to happen next in a market, is probably the biggest myth going around. This then leads into the fact that people will tell you technical analysis is bullshit.
No, they are just using it the wrong way!
By highlighting key support/resistance levels through technical analysis, traders are able to quickly identify when they are right or wrong and adjust their positions accordgly.
Once you have the correct risk management strategies in place, you can then take advantage of market moves, whether rational or not, by adding into your winners and cutting your losers early.
Best of probabilities to you.
Peace 🏻.
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