For most of the traders ..my trading strategy looks very different & opposite..here i am gonna explain why ?? There are only 2 types of traders … one is BIG BOYS & another one is “CROWD”..But i am not one among the crowd ..rather my strategy is unique ..Most of the traders like to go along with the “CROWD” so my Strategy seems different and get confused ..Rather i see what the CROWD wants and give ma product..CROWD will just go in search of answers which doent EXIST ..and a person who can forecast just opts out from the crowd because he has fore seen whatever circus the crowd does ..later on the ultimate result will be the same .. what needs to happen !! My trading strategy is something like …i wont be following the patter what the crowd does rather i analyse PATTERNS WITHIN THE PATTERNS…In broader perspective… Why most of the traders find diffucult to learn technical analysis if they take years also ..that is because THEY ARE SEARCHING FOR A ANSWER WHICH DOESNT EXIST ..To support their assumptions they try to find anwers which supports their assumptions….
A brief of my strategy :
There are four stages in any market. This applies equally to Forex, Stocks, and Futures. Any market that you can chart can be analyzed with cycles. The reason for this is natural moves in cycles. The market is just one reflection of human nature: fear and greed.
Each stage reflects psychological reactions to the market, overall opinion of price and news. Chartists believe that the fundamentals of the market are reflected in the price. Therefore understanding whether the “crowd” is fearful, greedy or simply without an opinion is a key factor to setting up any trade. All studies, patterns, strategies, in fact every aspect of trading is most effective when applied to the correct cycle.This does not exclude the fact that all traders would benefit from this analysis.
To prove my strategy i will give an example.. in one of our article gold 1400 ?? 1800 ? after the briefing ..@ last i had mentioned tht 1600 ! cannot be ruled out... but i still remain bearish... thouch i knew it will test 1600$ ..why didnt i buy ?? because the prices are driven by the crowd ... Human behaviour ..there is no logic behind that..i dont to risk my money .. 2nd question is why didnt i wait for 1600 to sell or take short positions ..as this is an abnormal value driven by the crowd & other sentiments..we cannot expect how and when the crowd change their mood or react..rather i had wasted time without joining the upmove..so when the crowd mood swings or turn the prices will be back to actual value..what it has to be ... crowd might change any time from 1595 or 1575 or 1535...if tht happens i never want to be left out ..and no one can predict the mood swings of the crowd..so gradually i will increase my positions by giving the crowd what the want ..and i will be getting a good value for my product...i will happily sell .. later the natural cycle will force the price of the product to its actual value !!
……………to be continued ………….
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