Wednesday, January 6, 2010

Keep it simple

Multiple time frame analysis is required to trade the markets effectively. This makes it a little complex to analyze. 

After deciding the trends, it is essential that one plays with simple tools to keep one's sanity.

Most indicators are rehash of the price and its relationship with itself at a point in time.  So trying out many indicators is looking at the same data in  many ways. Our mind starts drawing pretty pictures of the data to suit our directional bias.

Knowing what the market is doing / telling is more important than what one wants it to do.

Best way of not falling for this trap is to stop anticipating and start reacting to changing market conditions.

So one way of making it happen is to not rush the market to do something that you desire. Let it set its pace, wait for it to come to you.

May not look charming to a knight-errant, who goes out of his way to rescue a damsel in distress and marry her.

Markets are a place where you wait for the fair maid to come and fall in to your arms. Just hang around there lazily and she will come. (no pun intended!)

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