The Aha! moment of my career came when I started looking at price action as a study of market psychology. My thought process is built upon 4 fundamental rules which helps me understand what the market wants to tell. And due to this, I never find myself confused with any (1/n)
of the trading decisions I've to make. Let's see those 4 rules-
1) Thinking in terms of suddenness, extremes and urgency - this is important for chart reading.
2) Thinking in terms of expectations and expectation failures - helps with understand what major forces are (2/n)
doing, how they are reacting to what is looking obvious.
3) Thinking in terms of Decisiveness & Indecisiveness - helps a lot with my decision making process.
4) Thinking in terms of Risk vs Reward - Helps in refine my decision making process, this is more of an (3/n)
extension of the 3rd rule.
The conventional way of thinking which we are tought through the books written decades ago, which focuses more on pattern matching, will lead you to the average results only at the best- "average results" is a very generous word in fact, but the (4/n)
truth is even average results are very difficult, because of institutional manipulation which uses retail order clusters to built up or offload their positions. We need to think differently, sometimes contrary to the prevailing sentiments, and read market actions between (5/n)
the lines without being emotionally attached to any of them, to be able to make money. (6/6)
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