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

Sunday, October 2, 2011

One way to trade the market is pattern recognition.

Once you've been in the market for quite a while you can start building your own understanding about the market's movement.

And from there you can start forming your own ideas.

Your confidence starts to build up and you will not be carried anymore by the noise.

But that will take lots of time (possibly years), that's why patience and commitment in learning is essential.

Trading is simple but not easy, reading the minds of the market is the most important one.

The market is composed of human emotions and learning the psychology of the market participants takes a lot of studies.

How you react and how you respond is where you can exploit the market opportunities.

But its easy to narrate but hard to implement.

That's why practicing trading ideas in real time is the way to be a good trader.

As studies has shown, it takes 10,000 hours of practicing your skills to master your craft.

That same in any endeavor even in trading.