A lot of our clients first invest with us because they like the contrarian approach that we adopt in our investing strategy. We always say buy when there is "blood in the streets"! I know it's a bit crude but when everyone is running for the doors we are stood there holding it open for them!
Price action affects people in strange emotional ways and it's only the calm well prepared professional traders that can control these emotions. There traders can take an objectionable view of what the market is doing and not let price action emotionally effect their decision making.
We can identify on our chart the areas when people are running for the doors just by looking at sharp sell offs in up trending markets and seeing where the price action is likely to stop.
[caption id="attachment_1430" align="alignright" width="300"] Know the feeling?[/caption]
Last pivot highs and lows are one area, another area is prior support resistance areas these areas area all identifiable just by doing your homework on the charts.
We talk a lot about the psychology behind trading and some people just don't want to believe when you say that it's not only about having a statistical/analytical edge but also about having a mental edge.
I find it hard to listen to new traders that say trading has no effect on their mind or emotions as I can remember when I first started to trade my hard earned cash my heart was in my mouth! I learnt to deal with this over time through what we have detailed in the Trading Psychology section. Please do take the time to read over the Discipline, Mindset and Emotions sections as they will only have a positive effect on your trading.
Higher Odds Trading Analysis Market Update Video
Market Update
Today's Stock Market recap sees the usual content with some bigger picture analysis of the Oil sector showing the risk to reward potential in that sector. This type of rule based trading is something every trader should have in his plan. Trading without a money management profile can really have a negative effect on your profit and loss so try to understand why Philip talks in risk to reward terms and not the percentage the stock moved!
Relative strength and the trading channel are mentioned in the video today with areas of confirmation being pointed out. Philip explains about the market noise including the effect that Egypt has had on the chart.
Lots of great stuff today in the video so be sure to watch it and refer back to the education sections. If you feel the need to brush up on what Philip discusses, if you have any questions relating to this market update or wish for us to talk about a trading subject that you're interested in, please don't hesitate to contact us.
Know the feeling?[/caption]
Last pivot highs and lows are one area, another area is prior support resistance areas these areas area all identifiable just by doing your homework on the charts.
We talk a lot about the psychology behind trading and some people just don't want to believe when you say that it's not only about having a statistical/analytical edge but also about having a mental edge.
I find it hard to listen to new traders that say trading has no effect on their mind or emotions as I can remember when I first started to trade my hard earned cash my heart was in my mouth! I learnt to deal with this over time through what we have detailed in the Trading Psychology section. Please do take the time to read over the Discipline, Mindset and Emotions sections as they will only have a positive effect on your trading.