Stop the Guessing Game and Start to Make Real Profits


by Peter Woodhead - Date: 2007-02-12 - Word Count: 388 Share This!

Be one of the few private investors who actually take the trouble to learn how the market's really work.

What you always need to remember is that the market is always right. Not sometimes. Not maybe. But ALWAYS.

It does not matter what you think or the way you feel the market is moving. If it's moving against you, you are losing money. Period!

But this simple fact is one in which almost everybody gets wrong.

In short, if you see signs of weakness (or strength) in the market - you must act on them.

The vast majority of private investors who trade the markets lose money.

Why?

Because most people would rather be given a set of rules to work to rather than use their own initiative.

Quite frankly, if only it were that simple, everybody would be doing it.

Let's take a simple analogy to emphasize what I mean.

In a TV showroom, if the owner puts the prices up too high, customers will not be interested.

If however, he lowers is prices too far, his stock willbe quickly sold as a buying frenzy would ensue.

Prices will have to be adjusted to a figure somewhere between the two extremes.

Then everybody can be happy. Buyer and Seller.

But prices had to go too high to deter customers and then too low to attract customers. Before the owner and customer both knew that extremes had beenreached.

The markets work in exactly the same way. Prices are raised until buyers are no longer interested and driven back down until sellers are no longer willing to sell and buyers become interested again.

Of course, there will be private investors and good/bad news which are forever present, but it is the weight of the professional money that inteprets these high and low swings and determines the next move.

In short, if becomes an endless backwards/forwards movement with a prominent direction up or down (the trend).

Most people fail because they trade on emotion. Mostly fear. Fear of missing out on something. Just jumping in without really knowing why.

And greed. Overtrading in the markets thinking that is it! "There will never be another time like this." But in reality, there will always be other opportunities in the future.

There is this never-ending battle between the "bulls" and the "bears."

Once you begin to understand how the markets really work it starts to become enjoyable. So....

Put an end to the guessing game.


Related Tags: trading, day trading, stockmarket, stock market, online trading, markets, commodities, currencies

Peter Woodhead is the author of Trading Your Way to a Fortune and webmaster of several market related websites.http://www.HowTheStockMarketReallyWorks.comhttp://www.LongLostStockTradingSecrets.com Your Article Search Directory : Find in Articles

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