Trading is an art

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HOW TO BE ON THE RIGHT SIDE?


Trading means simply buying or selling shares, futures, or options.

But there are different mindsets of people across the world.

So how each one of them looks at the market movements?

This is the point where we need to think to gauze the market sentiments.


There are two type of personalities into the market participants

1.Trend fallower

2.Counter trend traders (traders against the trend)


According to the research reports: Most of the money is making by trend followers, comparatively with Countertrend traders.

What does it mean?

Once trend was established, it takes a longer time to get reversed. New or inexperienced traders have fear of falling at higher prices and greed of reverse at lower prices.

This fear is the advantage for big institutions, they will keep on pushing the prices to higher levels, Counter trend traders keep on shorting when the market is rising.


So exactly why are they shorting the rising markets?


there are multiple reasons to explain this 

1.They want to catch the top of the markets, So they can make a big amount of money.

2.They think that it's low risk and high reward trade

3.They think that the price is too extended or expensive


What could be the solution to this?


Honestly, no trading methods work 100%, here I am sharing my views and experience with you.

So trading is all about probability, we need to try to be on the right side always.

When markets are rising, try to follow simple rules

1.First stop thinking to short the market when it is rising significantly.

2.Only look for buying opportunity in "pullback" 

3.Observe the buying force in lower time frames.

4.Use the Fibonacci Retracement tool to find the possible retracement level.

5.Use simple Japanese candlesticks to identify the strength (Buyers force)

6.Once you find the low-risk entry, trigger entry and keep swing low as to stop loss.


How to take counter-trend trades?


We can make a good amount of money by taking counter trades.

It can be most rewarded, at the same time it will punish hardly.

But before proceeding for countertrade you should keep few things in mind

1.Draw the historical levels to watch

2.keep focus on round numbers

3.Read the information as much as possible from the candlesticks.

4.keep the stop loss above the immediate swing.

5.You must be very active, and the trade should be very quick in & out.


"TREND IS OUR FRIEND, TRY TO FALLOW THE TREND"

Thank you

Twitter: @sigma_daytrader

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