Trader makes money, not the system (p.3)
Continuation of previous text....
Traits of the best traders.
The best ones are very independent. I haven't met anyone who relies on the opinions of others in making decisions, especially opinions published on forums on the Internet or in the press.
There's a saying that Wall Street is the kind of place where people come in Rolls-Royce cars to listen to the opinions of analysts who come by subway. I probably don't need to add what happens to their money in such a situation. Many of the best even trade against "the rest," often treating, for example, news and analysts' opinions as signals to trade against them.
Let me give you an example - there are a lot of articles in the media that gold continues to rise and you can make money on it beats record highs... In a while "gold machines" appear, where you can buy gold bars. Banks start selling physical gold to their customers.... People are in a buying frenzy. But let's look at the situation from the side...
Watching the volume, we see that there is a lot of turnover. Literally "everyone" is buying, even those who have never invested in anything. Someone is selling this gold to them, because the turnover is high and the price does not move up - a sign that the demand is balanced by the supply of gold.
Hence the conclusion that someone is selling, and selling a lot. The question is who, since "everyone" is buying?
If this market of "retailers" saturates then... there will be no more buyers. Because, as you might expect, the biggest ones are selling, the professionals who bought "cheap" and are now selling "expensive" - to all the small investors. And to drive demand among them - they use the media. I know that when you hear about it for the first time it is hard to believe - but if you see it for the fiftieth and hundredth time you will change your mind.
Buy cheap and sell high - the eternal mantra of good investors.
Experienced investors buy when no one else is buying and sell when "everyone" is buying, because they know that demand will be exhausted in a while.
Most small investors buy when it's expensive because someone has told them they'll make money and sell cheap because someone scares them that it will drop further.
Give it a boost 🚀 and drop a comment so we know to publish more for you. Chect the footer. Cheers!
Follow: https://www.tradingview.com/u/drSwierk/
Traits of the best traders.
The best ones are very independent. I haven't met anyone who relies on the opinions of others in making decisions, especially opinions published on forums on the Internet or in the press.
There's a saying that Wall Street is the kind of place where people come in Rolls-Royce cars to listen to the opinions of analysts who come by subway. I probably don't need to add what happens to their money in such a situation. Many of the best even trade against "the rest," often treating, for example, news and analysts' opinions as signals to trade against them.
Let me give you an example - there are a lot of articles in the media that gold continues to rise and you can make money on it beats record highs... In a while "gold machines" appear, where you can buy gold bars. Banks start selling physical gold to their customers.... People are in a buying frenzy. But let's look at the situation from the side...
Watching the volume, we see that there is a lot of turnover. Literally "everyone" is buying, even those who have never invested in anything. Someone is selling this gold to them, because the turnover is high and the price does not move up - a sign that the demand is balanced by the supply of gold.
Hence the conclusion that someone is selling, and selling a lot. The question is who, since "everyone" is buying?
If this market of "retailers" saturates then... there will be no more buyers. Because, as you might expect, the biggest ones are selling, the professionals who bought "cheap" and are now selling "expensive" - to all the small investors. And to drive demand among them - they use the media. I know that when you hear about it for the first time it is hard to believe - but if you see it for the fiftieth and hundredth time you will change your mind.
Buy cheap and sell high - the eternal mantra of good investors.
Experienced investors buy when no one else is buying and sell when "everyone" is buying, because they know that demand will be exhausted in a while.
Most small investors buy when it's expensive because someone has told them they'll make money and sell cheap because someone scares them that it will drop further.
Give it a boost 🚀 and drop a comment so we know to publish more for you. Chect the footer. Cheers!
Follow: https://www.tradingview.com/u/drSwierk/
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