Saturday, July 4, 2015
To be successful traders
Most of you may have read trading books that state that increasing volume is good for the continuation of the trend. While this is true, there becomes a point of saturation where the markets cannot sustain the trend and start to reverse. Think of what makes prices rise. There has to be a buyer and a seller for every transaction. However when there are many buyers chasing a limited amount of supply due to a limited number of sellers, prices will rise as the buyers outbid each other to buy the shares. To be successful traders, you must look for the highest probability entries at demand and supply. Many times our trades will be confirmed immediately after we enter with large candles and professionals entering. We can help to time our exit at our target demand or supply when we see large candles signaling the amateurs’ entrance into the trend.