Don’t you see the similarity between this bird and falling the market ?
How long does it take to turn from down to up ?
Don’t you think it needs to stabilize for a while before going up in the sky ?
We need to catch the bird before going upward . Until then , its better to keep quite.
When you learn from the nature, you will understand the market easily.
Here i want to explain why trading and life are very much similar..
There is no difference between Life and Trading as per my experience. Life has ups and downs and Trading has up and downs. But, how you treated with life is only in your hands and which is similar in the case of trading too. Personality of the life and personality of the stock runs according to law of nature.
Every person has some kind of unique personality and has same kind of emotions. Whenever he/she gets the angry, happiness, sadness, jealous etc, he behaves similarly as compared to other person. Every stock has its own character and personality, runs in his own way, but acts in very much similar manner whenever it has good / bad news.
Fundamentals are very important in everybody’s life and if the fundamentals are good, he takes a right decision even though environment is good or bad. Fundamentals of the stock are also important whether it move upward or downward direction. Fundamentals of the stock would be Earnings, Sales, Fund ownership, float etc. All the stocks with same kind of fundamentals behave in similar manner. If we experience happiness and the expression would be Smile. If the stock has good earnings and sales report, it tries to go up either in the short term or long term.
If you understand your own psychology, you will understand the stock market psychology. Because it is running by the people with similar kind of expressions.
You need to know yourself first, and then only you will succeed in stock market. This is essence!!!
