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

Friday, February 17, 2012

Trade What You See And Not What You Think

The market went up clearly Thursday and by just looking at it (the chart below), buying at the open and selling at the close is the crystal clear to trade.

But when you are in the market tick by tick, you cannot spot the outcome the way you can conclude as shown from the chart.

That's where you as a trader, it is important to read the market's mind, and not imposed how your (as a trader) mind/will imposed to the market.

That's exactly what happened with my trades, kept imposing how "my mind" will work where the market goes - not the other way around (let the market do its thing, and ride with it).

Trading is simple but its not easy!

That is, if you let your "own" mind play by yourself imposing your will where the market goes is an exercise of bad trading practice.

So next time around, trade what you see and not what you think!