Winning or Misery and the Market Psychology

Winning or Misery and the Market Psychology

As everyone knows, the market has two sides and is very hard to forecast with a higher degree of acceptances. Market participants sometimes tend to forget the simple ideas that there are two sides trying to make money and been winners. The reality is that most traders lose money and end up having a short life as traders and consequently losing their savings and never understanding the real truth about the Market Nature.

The market requires a lot of mental strength and consequently each individual as a whole is different and not everyone is able to trade with the same degree of acceptances. As humans, we are all created with a different mind set and also we grow up in different environments which makes us different in one way or another. This is the main reason why many trading signal providers fail after all because followers do not respect the rules as presented by the provider. Markets make a living off traders inability to adjusted to the unexpected. We recommend a Theory which, we call, the Winning or Misery, referring to the two extremes of the trade, the limit or stop. Many traders are guilty of over thinking the Market and over analyzing the charts spending hours and ending up closing good positions early and leaving bad positions open for too long and too far against them. Our Philosophy is simple, use the Elliott wave Theory, other tools like cycles, correlations and any other tools that you feel comfortable with to trade and let the Market make the move and either take you to Winning  (Limit) or Misery (Stop).

Money Management is huge and always risking the same percentage of the money (and adjusting position size based on stop distance) is the way which through which you could beat the Market, which is at the end your goal, and also the way to have a healthy life as a trader and Human. Nowadays, we got too many noises as compared to before. It was easier to trade 10 years ago within the whole Market world as there was no Social Media or close to non-existent, not too many Market Television channels and not many Market experts. The truth is that not everyone is saying the truth and not every one is sharing the right ideas. The Truth is that there is a crowd and many times, saying the Popular trade which never ends up happening without shaking many market participants is the way to gain followers.

We advise this Theory of Winning and Misery and avoiding all noise. Understanding that there are two sides which in some ways are enemies searching for the same goal i.e. making money. Elliott Wave Theory is a good tool to start with but it needs adjustments as it was discovered more than 80 years ago. At the end of the day, regardless of the analysis technique or trading tools used, it is good to follow Winning and Misery and understanding that the biggest Market Participants, which we call Market makers, are there to take your money as they have the ability to move the Market. Hence your goal is to make a Plan and trade the Plan, let the Market oscillate until it reaches Winning or Misery.

Good Luck & Safe Trading

Eric Morera

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