When I first got started trading I assumed the price of a stock or futures contract meant everything. The whole story. Let me explain. As a day trader especially, if the price is at $4 and all of a sudden the shorts get squeezed and now we are sitting at $7, we’ll the first time the stock hits $7, the story and direction of the price is different then when, if or whatever the price does when it reaches $7 again.
The story. You will hear me speak a lot about the story in my articles because unlike others, I believe the market is a complete manipulation from big money finding ways to screw over the little guys and take you for all you got. They always have a trick up their sleeve. The worlds best traders identify the current story. They think, hmmmm, if they were to do this with the price action, then manipulate it to do that, this will probably occur. Once that thing occurs, the average trader identifies it. What the average to loosing trader does is try that exact same setup but looses. Why? Because it takes a wide awake trader to identify the move before it happens and on top of that, trust their judgment. It’s not easy but it can be done. The question to ask yourself is “do you enjoy that” are you a defective. If so, paper trade and learn ho the stock market is rigged. Fortunately for the big money investors they get to get away with it. They say it’s “making the market”.
Happy trading and make it fun. Don’t stress out or else it really ain’t worth it. Trading full time will consume your life. I did it for many years and found out you don’t need to trade full time in order to make great money in the market. Instead, you need to learn how to read what the market makers are doing, catch a few solid winning trades and as you get confident with your trades increase your size and take in the cash. Not easy, but hey, you might just be the 5% that are able to make it. Trading is risky. They want your money and they will grind you out to get it to them. If you have big wins, they will find a way to get it back if you get to emotional and allow them to take it back. Strengthen your mind to succeed and you might just make it.