How to improve your trading | stockbee


How to improve your trading

Start by understanding how markets and stocks work. If you want to operate or repair a car you need to know how it runs and rules of the road.

To build an edge in trading stocks you need understanding of market structure and how stocks move.

You will fail if you do not have structural understanding of the market . Once you develop understanding of markets then you will be able to design your own methods to extract profit out of the market.

A good understanding of markets will also help you when your methods stop working or you hit rough patch. You will know how to and what to fix.

Unfortunately many traders do not survive long enough to reach a stage where they can understand market structure. The focus on newsletters and recommendations prevents many from understanding market structures.

Most traders do not start out by an objective of understanding market structure. They start by looking for way to make money.

Some are lucky to find a method based on market structure early in their career.Some survive long enough and figure out market structure.

If you want to build enduring trading edge and make money first and foremost understand market structure.You must know how market operates and why it operates in that manner.If you can understand that then you can build many ways to benefit from that understanding.

To understand markets understand the role momentum plays in the market. It is the most basic structural tendency of the market. Momentum has been studied extensively and you can benefit from understanding it.


enzo said...

how do i start learning about market structure

Pradeep Bonde said...

Study market anomalies. they are proven phenomenon in market

Alok said...

Thanks, Pradeep. Keep up the good work! Good that I stumbled on you blog :)