Now, let’s move on to our third lesson for you as a Day Trader.
There are a lot of psychological aspects that play a big part in the market. After all, the market is played by real people, actual human beings like you and me. And just like we have emotions, so these market players have feelings and emotions too. And they come to the fore as these traders make their moves each day.
Yesterday’s Close is a very important factor in the market. In other words, the price that a stock closed at the day before is very significant. After all is said and done, everyone ends up at the same place. So, whether some traders are happy and others aren’t, the stock closes each day with everyone holding on the same page. After all uncertainties of the day, the closing price is the same for each and every trader. This is what the conversations revolve around, what price the market reached at the end of the day. And very obviously, this price affects where each trader will be starting at the next day too.
There are a lot of psychological aspects that play a big part in the market. After all, the market is played by real people, actual human beings like you and me. And just like we have emotions, so these market players have feelings and emotions too. And they come to the fore as these traders make their moves each day.
Yesterday’s Close is a very important factor in the market. In other words, the price that a stock closed at the day before is very significant. After all is said and done, everyone ends up at the same place. So, whether some traders are happy and others aren’t, the stock closes each day with everyone holding on the same page. After all uncertainties of the day, the closing price is the same for each and every trader. This is what the conversations revolve around, what price the market reached at the end of the day. And very obviously, this price affects where each trader will be starting at the next day too.
This is one reason that yesterday’s close is so important. Another reason is because the term “yesterday’s close” is part of the lingo of the market.
One of the most important things to do whenever you enter a new field is to learn the lingo. You want to learn the “language” of those around you, and I don’t mean English, Spanish, or French. You know, like when someone is studying for any profession, they have to learn the terms in order to understand anything that’s going on.
So the same thing applies here, in the stock market. You’ve got to learn the lingo in order to understand what’s going on. Everyone is always asking, “Is the market up or down today?” What they are really asking is, “How much did the market drop since yesterday’s close, or how much did it rise since yesterday’s close?” It’s the pivot point, an important fact that makes a difference in everything.
Makes sense? You can find out more by logging on to: http://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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