Monday, March 24, 2014

Market has its own LAW!



Genius is nothing but a great aptitude for patience – George Louis Buffon.

Human are engrossed and fascinated with prophetic predictions.  Predicting absolute levels is an exercise that one should make with cautions. These predictions are merely targets can be achieved, under-achieved or over-achieved. The key is what does one do when it is under or over the predicted levels? 

Markets are EFFICIENTLY driven by PSYCHOLOGICAL EMOTIONS. Market movements reflect emotional instability. Market is about mathematical game theory of probabilities and possibilities (GAMING THE MARKET). 

Price behaviors open many avenues of different interpretations. Market represents dynamic forces with developing variables which absolutes levels can never be fixed. 

Fanatics like to believe that predicting market accurately is the key to success. Investors’ refusal to be educated, willingly entertain wild fantasies and believing what one’s to believe instead listening to market are recipes for failures. The risk that traders face the risk of own destruction and victims of their own makings due to their rigidity with ever changing market conditions. When the predictions base on charts failed, no one will admit it is due to wrong analysis but rather failures attribute to other factors. Markets may appear to be randomly chaos to some but other can see “order” in this situation.

Market oscillates between optimism and pessimism distilling human emotions in a rhythmic manner. The basic recognition of appropriate elements and acquire a conceptual strategy for consistent successful conquest. The paramount attention given to prophetic forecasting is engrained in all human instead of finding or developing a strategy for consistent successful trading.  

Mastery of any technique takes time, patience and judgment.  Market will do what it wants to do and when it wants to do it. We have no control over market actions. We are merely participants in market’s dynamic actions. For us to succeed we need a “guide” to weigh probabilities and the knowledge to weigh them with confidence to act on the probable and not on improbable. Listen to what market is saying about itself!

You must have confidence in the tools you are using. Being humble is difficult but it will lead you to success. The most important intellectual quality of success is one’s ability to keep an open mind recognizing the limitation of knowledge. As the saying goes – “know what you do not know”.

Market has its own LAW!

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