Why Traders Fail to Grasp What is Actually Happening in The Markets

Psychological issues are huge in beginning and intermediate traders, but what I think is an even bigger obstacle is that traders fail to understand what the market is, and what it is trying to do. People seem to forget that the market is made of up people just like you and me, and they are executing trades. It’s not just some chart made up of green and red bars. Traders LOVE indicators and searching for the Holy Grail, but they fail to understand that there is much more to the markets than indicators. People place trades, and yes there are algorithms but they were programmed by humans just like you and me. Humans suffer from two very predictable emotions, fear and greed.

These emotions are exploited every day by the astute trader. Traders need to understand who is in control of the market on any given day and how that might affect trade. If you know what to look for with a little experience you can identify who is controlling the market and adjust your strategies accordingly. For example, if I determine that day traders are in control, then day time frame reference areas become more influential and traders are likely to respond at these prices. Here are a few day time frame reference points: the previous day’s high/low, overnight high/low, and midpoint of the day.

It is important to understand who has control because if the higher time frame players have control price can violently break though these levels with ease. Traders don’t understand why this has occurred because they are just looking at a chart and have no clue who is in control of the market. I have heard so many traders say support and resistance does not work, and “why would I place lines on my chart because they will just get broken.” When I hear a trader say this it’s clear they do not understand who is in control of the market. Support and resistance does work and it works great, but you have to know when to use it. You need to know when support or resistance is likely to fail and capitalize on that failure.

If you have not worked for a hedge fund or institution it’s unlikely you will ever learn this. How could you learn the buying and selling patters of larger traders if have never met a large trader? How could you learn the buying and selling patters of short term traders if you have never worked with successful short term traders? This is only possible if you have been coached by a professional who understands these concepts, another reason why retail traders are at a huge disadvantage.

I want to bridge the gap between retail and professional traders and I teach traders how to identify who is in control of the market, but there is much more to trading than just this one concept. That is why I created a complete education that will take a trader from A-Z. If you want to trade on a professional level then take a look at my program in the link below.

Professional Trading Course

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