Peter Woodhead
Stop the Guessing Game and Start to Make Real Profits
Be one of the few private investors who actually take the
trouble to learn how the market's really work.
What you always need to remember is that the market is
always right. Not sometimes. Not maybe. But ALWAYS.
It does not matter what you think or the way you feel the
market is moving. If it's moving against you, you are
losing money. Period!
But this simple fact is one in which almost everybody gets
wrong.
In short, if you see signs of weakness (or strength) in the
market - you must act on them.
The vast majority of private investors who trade the
markets lose money.
Why?
Because most people would rather be given a set of rules to
work to rather than use their own initiative.
Quite frankly, if only it were that simple, everybody would
be doing it.
Let's take a simple analogy to emphasize what I mean.
In a TV showroom, if the owner puts the prices up too high,
customers will not be interested.
If however, he lowers is prices too far, his stock willbe
quickly sold as a buying frenzy would ensue.
Prices will have to be adjusted to a figure somewhere
between the two extremes.
Then everybody can be happy. Buyer and Seller.
But prices had to go too high to deter customers and then
too low to attract customers. Before the owner and
customer both knew that extremes had beenreached.
The markets work in exactly the same way. Prices are
raised until buyers are no longer interested and driven
back down until sellers are no longer willing to sell and
buyers become interested again.
Of course, there will be private investors and good/bad
news which are forever present, but it is the weight of the
professional money that inteprets these high and low swings
and determines the next move.
In short, if becomes an endless backwards/forwards movement
with a prominent direction up or down (the trend).
Most people fail because they trade on emotion. Mostly
fear. Fear of missing out on something. Just jumping in
without really knowing why.
And greed. Overtrading in the markets thinking that is it!
"There will never be another time like this." But in
reality, there will always be other opportunities in the
future.
There is this never-ending battle between the "bulls" and
the "bears."
Once you begin to understand how the markets really work it
starts to become enjoyable. So....
Put an end to the guessing game.
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Peter Woodhead is the author of Trading Your Way to a
Fortune and webmaster of several market related websites.
