Psychology of Markets

Trading Psychology – Introduction. What makes an F1 racing champion? Is it the car?

The stock market is called a ‘bear market’ when it moves downward for a length of time. When the market moves up, it is called a ‘bull market’.

In a previous article I mentioned that my analysis involves monitoring price action, in order to gain an insight into the short term sentiment of the market. Determining who is in control at that time – the bulls or the bears.

I want to talk about a common theme that’s in many of the email questions I get through my website. Many people have bought a trading system, or a couple of books, or attended a seminar, and just not achieved the success they thought they’d get.

What I’d like to do in this very short article is give you an overview, looking at the strategic level, of how I trade my favorite setup, which will be the one referred to in most of the analysis on my website. We’re talking, ‘the big picture’.