We are all part of a bigger picture. The same situation applies while one dabbles in the stock market.
While we are so certain of specific set ups, trade executions with plenty of research - in-depth or simple ones, there is a still bigger picture, to mind; not to forget.
The bigger picture forms continuously and never stops. The picture hangs above our heads even when we forgot to think about it. Fresh news breaks out, macro events, macro trends, higher moving averages, stocks categorizations . All these while we are looking at a set up or maybe a single stock.
Normally - we read the news, check the markets and look out for price ceilings and floors, drawing lines. Yes, drawing lines - important, utmost. That's the least you can do, probably mentally. Horizontal or slants, or should you just look at one of them. Then you may look at higher moving averages, larger waves and overall market sentiments. What then or what's next?
Price action.
Without price action, no glaring set ups can be spotted, I think. Unless you are insider-ing trading which is illegal. Even so, manipulation or whatever it is can likely appear in price action - whether or not one can identify it. That's the beauty of having candlesticks in charts. Or rather (and also) the stock market. I thank.
Have you heard of anyone who trades purely based on news or announcements without looking at the price chart (or just price if they follow and memorized the movements)? Not impossible - I recall people who enters a trade just based on Highs and Lows, coupled with announcements.
I'm convinced that there is no "1 size fits all" for traders or inspiring traders. People behave differently among one another while the price of a stock moves on the screen. Luckily, trading methodologies are aplenty, and instincts could guide an experienced trader to an extent. Grace could also you help to an extent. But punishment awaits to those who are trapped by fear or maybe greed. Sounds ugly. Recalling to my previous post.
So where do we find guidance besides lessons (painfully) learnt?
People - great mentors
Our surroundings - eg. the famous "Fibonacci pattern"
Life Events - Inspirations
Stories - Aspirations
Ourselves - by "writing"
To list a few.
Always be keen (you really have nothing to lose besides time and 'ink') to jot down your ideas, ponder them, develop a strategy, and try not to deviate until results (good or bad) are seen in your balance or even in yourself. Or better still, don't trade at all until you sit on it enough and decide again.
After all, I stared at the S-Reits market for years before making my first entry.
Don't be hasty.
Trade with Inspirations ;)
