Friday, August 8, 2014
Trading Mistakes and Traps
As traders are taking any buy or sell areas in markets, they make sure to know where price is with regard to the larger time frame supply demand curve. Whether you trade Stocks, Futures, Forex, or Options, understand that behind all the candles on your screen in all these markets are people and their emotions. Most will fall for the emotional breakout trading traps while others will get paid from them. In short, instead of entering the market on the initial move higher or lower from a level, enter on the first pullback into the fresh supply or demand level. This is one of the most common mistakes many stock traders make and a very easy one to correct. The reason traders are concerned about this index is that it is comprised of small cap companies that generally do not have international risks for their business. Without the world wide income, they are more responsive to changes in the United States economy and can be a better barometer for the make up of our US economy and markets. When this index is not doing good, it is a bad sign for the stock market as a whole.