Wednesday, December 31, 2014

My view point about financial markets trading

I once read a quote somewhere about financial markets.....it read "Its not about TIMING the market but its more about TIME IN the market"

Recently one of my friend asked me whether his favorite stock will reach his desired price in next 3/6 months. I told him, nobody can predict the time, but yes if you analyze the stock properly you will know where the bulls and the bears are likely to take trading decisions. If you are planning to go long on a stock, keep a close eye on bearish price moves and try to trade where the bears are likely to exit their stop loss. As a trader I always try to spot the price at which maximum order flow is likely to come. It could be bullish order flow or bearish, it doesn't matter. With sufficient try out one will eventually get aligned to market trend. The real challenge is to know "when you are wrong where to get out" if you are consistently scratching your trades and coming out at breakeven that means you are a very disciplined trader and soon you are building a strong personality as a trader to become profitable, because you have never allowed yourself to go in a loss, that itself is a big achievement.