Learning to Track the Elephants

When it comes to trading, whether Stocks, Futures, Forex, etc., the amount of losses traders incur is staggering, literally boggling the mind. These individuals start off with the greatest intentions, only to flame out, typically in a trade that contained a beating heart, sweaty palm, and a clouded mind. The average trader loses partly because they typically start along the same path - the bookstore. Many of these books provide mere definitions of terms, nothing more. Thus, many traders approach the markets with no edge, using typical strategies, such as 'breakouts' and 'crossovers.' Let me clue you in - it won't cut it. I'll give you an example. I like using analogies because of feedback that I have gotten. Many people say they 'got it.' Here goes. Suppose someone took something from you, and let's say this individual was bigger than you. Chances are, you might not push the issue. You'll just "let it be." Now, let's say that 4 of your friends from the gym stop by, and they are even bigger guys. You lament to them the series of events that unfolded, and their response is they will help you "sort the matter out." Now, what do you think your attitude will be? Probably a bit more emboldened, yes? I think so. Why? Because you have the "big guys" behind you, and they CAN sort things out. Now let's apply this to trading. In trading, there are the little guys, and there are the big guys. I am a little guy. If you are trading less than 100 contracts, you are little guy, too. Get over it. In this game, you can please a lot of people, while still being small. It's the big guys we must pay attention to. Call them what you want - market makers, floor traders, smart money, it's they who move the markets. If one can learn to spot when these individuals, syndicates, and pros enter or exit the markets, you can ride on their backs. Too many traders fail because they never learned the hidden art of how to read a chart's price action to spot where and when the professionals enter and exit the market. Because of this deficiency, they are handicapped and cannot obtain the edge they need. To trade successfully, you need an edge. Sure, there are Japanese Candlesticks, and the exotic titles such as Doji, Hammer, Engulfing, Shooting Star, etc., but in terms of identifying professional money, what are these bars saying? Therefore, when you learn to read charts from this perspective, the way a musician reads music say, your trading can become truly exiting. Article Source: http://EzineArticles.com/?expert=Eleazar_Heracleopolis