BE IN HARMONY = MOVE WITH THE MARKET

For those who saw my previous entry on My Stock Market Ideology, the first point should also raise a huge question… How do we move with the market? How do we “anticipate” or “know” what the market is going to do on a particular day?

The Answer is simple: YOU DO NOT! You do not anticipate and you do not need to “know” what the market will do. 

What you need is to HAVE A CLEAR PLAN of what to do when the market moves in a certain way.

First: Identify clear levels of support and resistance using Daily or Hourly charts. These levels should be obvious. If you are thinking too much then probably other traders won’t see them hence the self-fulfilling prophecy won’t be as powerful when/if it kicks in. 

Second: Observe – Watch the market “movement” near your levels. LET the market tell you what it is really going to do.  And keep this simple… if the market is not talking clearly to you IGNORE it… meaning... Sit on your hands and don’t trade!

Third: ACT decisively. You have a plan don’t you? Then execute. Take the trade and get the rewards of a well planned move.

And remember Price + Volume action will tell you all you need to know! Learn to read the tape, learn to interpret price-volume action.