Monday, August 3, 2009

Market Psychology: Part II

So, our first lesson in Day Trading was that the market is based on all the psychology that goes on behind it.

Now for our second lesson, at Trademark, we believe that everything that happens throughout each day is connected. Every move on the market is connected to the previous one. Now let’s explain this a little more.

Let’s take, for example, a stock that has been climbing the market throughout the day. As you continue through the day, you should keep the same mindset the whole time and expect the stock to continue climbing. We base our predictions on what has been happening until now. In other words, each day is one long story. This logical way of analyzing the market has proven successful many times over.




In another example, let’s examine a stock that is holding in a specific price area for a while without going any higher or lower. Psychologically, this means that neither the buyer nor the seller thinks that this stock is worth more or less than the price it’s holding at. The buyer refuses to pay more for the stock and the seller refuses to sell it for less than this amount.

These examples show that the market is really a match between real players. And the moves that we see in the market are only the technical demonstration of emotions and human decisions. That’s right. The players of the market are actual people! They are human beings, trading with each other.

At Trademark, we teach a strategy of patterns that are both psychological and technical-based. You will learn the psychological reason behind a move. And only once you totally understand this concept, will you be able to get involved in a successful trade.

Make sure to keep checking back for our latest tips and pointers about trading. When it comes to Trademark Academy, you can trust you’re learning from the best! Don’t believe us? Check us out yourself!

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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