Easy to see why most lose...

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ProfitTakgFool

Today is a perfect example to see why most traders lose money. As price is falling traders are crapping themselves to get out....just get me out! There is a great deal of fear in the market, which is pretty clear from massive volume at falling prices.

The price stops falling, and actually recovers a few points but volume is dropping off. Why? There's still too much fear.

Then comes the amazing part....the price begins to expand rapidly and traders begin pissing themselves in a panic to buy and lose again.

The majority of the traders hate it when it's falling but love it when it's rising. It shouldn't be too hard for you to figure out where you are going wrong, assuming you are going wrong.
 

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RULE#1.) NEVER FIGHT THE TAPE.
It is not smart trading trying to short stocks in a raging bull market. A rising tide lifts all ships as the saying goes. Even the crappiest stocks can go up in a bull run, defying all logic no matter how crappy they are.
The reverse is true in a bear market or correction. Even the best stocks of solid companies get taken out and fall in price.
You first need to be on the correct side of the market, the correct side of the sector and then pick the best positioned stocks whether short or long stocks and go with the direction of the market.
Not against it.
 
Yeah, I am waiting for new lows this afternoon to cover...Tomorrow brings the CPI figures, and I figure that cannot be good news to this market. Also, my leader-board remains all red, despite IBM's manipulation into the green a time or two.
 
wrong . most lose because of poor money management. This has been proven again and again. Traders don't give themselves a chance to win. Thats why they lose.
Keith
 
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