Walking through my street, i saw a group of kids playing cricket. The kid doing the batting was playing really well. He playing the right shots and the ball was going the right directions. But, this was not to last .. There was a change in the bowling, the new bowler seems to know the batsmen style. He made the batsmen, make mistakes. Eventually the batting kid is out off the game. The story is same for you and me too. We all know the game of cricket, we know how to play, bowl, spin and field.. The only problem is the mindset, there is always a situation or someone, who will bowl you out.. The game is simple, its the pitch thats unpredictable.
Similarly, the day is unpredictable in the market. I have seen market gurus fumble, while trying to explain the markets. The trends are always against them, its never do this and it will work game. Its do this and make others to loose game. There are people who are watching our every move, they know how we trade.. Also there are traders, who come together by shear luck or news. The news may be insider.. There are three kind of people..
Similarly, the day is unpredictable in the market. I have seen market gurus fumble, while trying to explain the markets. The trends are always against them, its never do this and it will work game. Its do this and make others to loose game. There are people who are watching our every move, they know how we trade.. Also there are traders, who come together by shear luck or news. The news may be insider.. There are three kind of people..
- market movers
- Insider traders
- Followers
Market Movers tend to read the market and can either move it against you or they can move it in favor of you.
Insider Traders trade based on the news that is leaked from an organization or government.
Followers are traders who follow the trade direction, giving strength to the market movers and inside traders..
Among the three traders, only one is dangerous market movers. They can change the directions of the market at the most favorable situation for them. These traders are smart and have all the data in hand even before you and me. Its because of these traders that i would rather wait and watch than go with the flow. Its better to pounce like a tiger, than follow like a Sheep. We will get slaughtered, by the Jackel.
But, even a tiger can miss!!
There certain indicators, which as helped me to find the market directions... Which i am still trying to understand and become better at.
