Monday, July 27, 2009

First Lesson: Market Psychology

Okay, now let’s begin with your first lesson as a Day Trader: The market is based on all the psychology that goes on behind it.

If you’re looking to become a successful trader, you should know that each move in the market is only a result of a psychological move amongst the market players. There is no such thing as “luck” in this business - there a reason for every move.





For example, (are you writing this down?) if a stock starts out at a certain price at the beginning of a day and rises throughout the day, there is a reason behind this. You see, for every trade, there is a buyer and a seller. So in our example, if the price of the stock is rising, this means that there is a rise in demand for the stock. In other words, the buyer is very interested in this particular stock.

Therefore, the seller will start making the price tag higher because he knows the buyer will agree to pay the higher price. The seller will continue increasing the price as long as he is sure the buyer is still totally interested in buying. This is how the worth of a stock can jump so much within a short amount of time. Pretty interesting, huh?

At Trademark Academy, we teach strategies that combine both the technical and psychological plays of the market. We do not base our decisions on the technical alone. We delve into the technical and analyze the psychological reasoning behind each move.

That concludes our first lesson. With each lesson, we will build on the one before. And as we continue, you will start to realize that we are, in a sense, putting together one very large puzzle. And when you step back at the end, it’s pretty neat when everything all of a sudden makes sense to you. It’s a great feeling! And we’re very excited to be the ones to help you get there.

For further questions and information, log on to www.trademarkacademy.com, or visit our newly renovated, state-of-the-art training facilities and learn more about how to make it on you own!

See our risk-disclaimer on our website: www.trademarkacademy.com.

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