'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Wednesday, December 8, 2010

Observe & Trade


Was wrong to make an "assumption" today about the market direction, that's why in the market nothing is predictable - so better not to make any conclusion about the market!

But sometimes as humans, we make some kind of "abnormal" presumptions, that's why there is trading in the market.

If no one has conclusion, we cannot make a trade, but it would be better just to keep it to ourselves (traders).

That's why I refrain from making such "prediction" if I have to, I always based my observation about the market through charts formation, not from the news.

Anyway, the market "zag-zig" today!

I call it zag-zig because of its abnormal movement as shown from this 5-min. chart from SPY (ES).

Looks like the market is taking some kind of "stockpiling", ready to burst anytime.