"Market Has Life" - Unique

This month and last month, if you keep losing money. Few things for you to ponder below, hope that this article can enlighten you something.

First of all, you lose not because market is dipping, or market is volatile, or market is whatsoever. The reason you lose because you are not unique. You think like what normal person think. Me myself sometimes can't help to think like general market does. Can't be help, it is human nature. So are you going to keep losing in this market?

Earlier on last month, I told one of the forumers - that the "market has changed". The first time he heard this sentence, I bet he can't understand what I meant. I described to him that the market is hungry last month and be cautious because he don't know this market. Until he lost the first few trades he admitted the market has changed.

In this market, general market players surely loses more than gain.

1. Because that the market corrected a lot, you afraid it will corrects even more.
2. Because that prices changed from red to green, you start to buy based on colour.
3. Because that people buy you buy, people start to worry and sell and you sell.
4. Because that Dow Jones surged triple digits you buy in the morning hopes that the market will rebound.
5. Because that last correction is a 'V' you forgot about false rebound.
6. Because that you yearn for another 5% gain you waited another day.
7. Because that you think you are still live in Feb 2007.

Ask yourself, do you know what is few basic rules in trading? You will be surprise you have forgot them rather than you don't know them.

Buy at dip, sell on strength (Look at No. 1, 4)
Avoid greed (Look at No. 2, 3, 6)
Technical indicator? (Look at No. 2, 4, 5)
Emotional (Look at No. 3, 4, 7)
Lower the price, lower the risk (Look at No. 3, 6)

So, you can list out even more basic rules in trading (as much as you like). You will simply found that bad news spreader, market volatility, shortist, are not to be blamed but you, yourself. You have forgotten them since the market surged irrationally before hard landing.

So ask yourself, are you unique? Or just one of the herd.

(After this, try to list out today's market condition and check with the basic rules to see whether it is worthwell to jump in)