Trend rarely disappoints you. I don't like to use the word analysis when it comes to financial markets. Because the moment you start analyzing, you make two basic mistakes:
1. You start thinking actually overthinking and mind usually has a contrarian bias. It always thinks in a way that it's not part of the crowd and it knows more than it actually knows. It will look for clues that don't exist like market overbought/oversold/xyz indicators.
In Financial market -you have to keep your belief system in sync with big picture market movement. Ask: Why market is doing what it is doing
— Deepak Singh (@smarket) July 11, 2017
2. You stop seeing the obvious. The obvious being the trend.
Let me share one example of what happens when you trust a trend: Emerging market.
The Idea: Emerging market is a strong asset and it will continue bouncing from its strong support base of 50 dma. Ok ok so what did Emerging market do - Let's see
wow...What a rally. What did I do? - I just trusted that trend with a belief that it will persist and did not apply any useless analytical skills. In financial market, this is the big thing you can learn - Start Trusting the trend till the point it starts disappointing you. In that way, you will stop looking for top and be in harmony with the market all the time.
Reading market is not about forecasting the future. It is reading the emerging trend and hoping that it will persist for some time to come
— Deepak Singh (@smarket) April 28, 2017
Science of Stock Price Action - New Chapter
Watch the complete Video here (This is for Premium Science of Stock Price Action Reader)
Science of Stock Price Action Video Book
There is a logic that stocks follow when they make big moves. I have tried, to sum up, those concepts in a methodology called Science of Stock Price Action.
Do these concepts work all the time? Absolutely not. But when they work - they reward in a big big way. There are many factors at play primarily the overall market environment. The objective of my website is to put forward many Live case studies before you so that you can learn how these patterns work and why sometimes they fail too. The whole idea is to illustrate and make you understand the whole logic behind it.
If you find my work interesting - I will encourage you to buy the book and access Premium Case Studies. The idea is to demonstrate live how patterns unfold and work. They succeed, they fail but the whole process is real fun. I invite you to be part of it.
Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers