TRADING is EASY

Emotions are always prevalent when trading. However, often traders confuse genius with a bull market. It’s not that hard to make money in a roaring bull market. The truly difficult  part is keeping your gains when the bear comes prowling. You’re not as smart as you think you are when everything is going great and conversely, you’re not as dumb as you think you are when everything is going against you. The market kicks all our butts now and then. Surely enough, the kicking usually comes just when we think we’ve got it all figured out.

As a trader the one great thing you should be thankful for is that you don’t have to come up with a reason for “WHY” the market is doing what it’s doing. The TV pundits on CNBC do because that’s their job. But you don’t have to. Just follow your chart work and let someone else do the pontificating. After all, who really knows why stock XYZ goes up 5 points on Monday while stock ABC, in the same business, goes down 5 points? That’s the wonderful thing about technical analysis. You don’t have to know. The price action is the “TRUTH”. It’s all you really need to know.

The price doesn’t lie. The price doesn’t alibi. The price never complains and never explains. It is what it is. When XYZ goes up $5 on heavy volume, let the TV Stars on CNBC spin their theories on what it all means.

We know exactly what it means. It means XYZ went up $5 on heavy volume.