you dont even know what you dont know(the observer from fringe)

[mute9003]

after few unsuccessful trades adn deep hodl i got into my head that if i understood more about how to read charts i would not have made these mistakes

but now i have this thing

i understand that i dont know alot
but i dont even know what i dont know
aka i dont know what is realistically can be seen and known in the market at the top level of this profession..

and top traders are not very quick to share that detail

like the question i keep having.. when i look at the chart and i dont see something..is how much is there to be seen. what should i see when i look at the charts?

i can see the chart moving but i barely understand the cause behind most of the movements
how do you learn that? because no matter how long i look at the chart it wont tell me why it moved.

for example sometimes i see youtube video and the dude goes . the price dipped because institutions did this and that and traders reacted or it hit a stop loss etc...
but there are so many causes for stock price moving is there a book or maybe a video that covers specifically the causes of price movement and not just show patterns without explaining why it happened?

 

[mute9003]

there are videos explaining the basic price movement in general but i havent found any that cover causes of each specific chart pattern
like what interaction of traders causes the head and shoulders pattern or why is ascending triangle moves into tighter swings and then breaks out or rising wedge and channel up does not become an ascending triangle

 

[deaddog]

You don't have to know why. There is no possible way for you to know exactly why. Investors/traders love a story but it's usually in hindsight. The real reason markets move is supply and demand.

Don't focus on why. Focus on what you can control.

 

[mute9003]

so what separates the top from the rest then?
they obviously see more when they look at the charts

 

[SPX Options Trader]

after few unsuccessful trades

for example sometimes i see youtube video and the dude goes

YouTube is a rather laughable place for someone to reasonably expect to become a major success trading. Those people/salesmen in front of the camera are all there to make themselves rich by sounding like an expert showing past, hindsight, charts speaking in clarity of mind.
Similar to gambling teachers teaching others how to make a bundle gambling....if they had this really cool knowledge and talent and experience ...why are they giving it way, or selling it away? Makes no sense.

Think about What you trade. Across what time frame. What are your goals. Question pros/cons, strengths/weaknesses.
Trading is similar to fishing or hunting or dating/flirting. Why are some people successful at it, while others completely fail over and over again,
Understand your environment, the prey and all the other variables in play.

 

[deaddog]

so what separates the top from the rest then?

Self control.
Every trader is different. Each has developed an effective strategy that fits their personality and have the discipline to follow that strategy.

 

[kroxobor]

after few unsuccessful trades adn deep hodl i got into my head that if i understood more about how to read charts i would not have made these mistakes

but now i have this thing

i understand that i dont know alot
but i dont even know what i dont know
aka i dont know what is realistically can be seen and known in the market at the top level of this profession..

and top traders are not very quick to share that detail

like the question i keep having.. when i look at the chart and i dont see something..is how much is there to be seen. what should i see when i look at the charts?

i can see the chart moving but i barely understand the cause behind most of the movements
how do you learn that? because no matter how long i look at the chart it wont tell me why it moved.

for example sometimes i see youtube video and the dude goes . the price dipped because institutions did this and that and traders reacted or it hit a stop loss etc...
but there are so many causes for stock price moving is there a book or maybe a video that covers specifically the causes of price movement and not just show patterns without explaining why it happened?

Basically you overcome this difficulty with trials and errors process. Doing this way you sometimes get valuable information which can with high certainty help your to filter out what works and what doesn't work. Practice sheds light on additional knowledge and very often we have to pay a price for it.

 

[maxinger]

after few unsuccessful trades adn deep hodl i got into my head that if i understood more about how to read charts i would not have made these mistakes

but now i have this thing

i understand that i dont know alot
but i dont even know what i dont know
aka i dont know what is realistically can be seen and known in the market at the top level of this profession..

and top traders are not very quick to share that detail

like the question i keep having.. when i look at the chart and i dont see something..is how much is there to be seen. what should i see when i look at the charts?

i can see the chart moving but i barely understand the cause behind most of the movements
how do you learn that? because no matter how long i look at the chart it wont tell me why it moved.

for example sometimes i see youtube video and the dude goes . the price dipped because institutions did this and that and traders reacted or it hit a stop loss etc...
but there are so many causes for stock price moving is there a book or maybe a video that covers specifically the causes of price movement and not just show patterns without explaining why it happened?

During trading,
STOP trying to understand / comprehend why the market move.


If you want to understand why the market move,
do it 1 or 2 days or a few weeks later.
Why? the professional writers / news reporters need lots and lots of time to
understand and comprehend why the market moved.

 

[kroxobor]

During trading,
STOP trying to understand / comprehend why the market move.


If you want to understand why the market move,
do it 1 or 2 days or a few weeks later.
Why? the professional writers / news reporters need lots and lots of time to
understand and comprehend why the market moved.

They simply fit the narrative to current market dynamics. Financial analytics in mainstream media always lags, it's a fact.

 

[Zithiel89]

Do you really need to know that?
It depends on the assets to understand the reasons for the prices go up or down. Some of the fluctuations can be explained by a decent and consistent fundamental analysis, however, more often than not, we cannot understand why the reasons for this or that price movement. I don't really think that every trader should get to the bottom of every fluctuation. Sometimes, the traders really need to know some fundamental causes of the prices during some ecenomic events like non-farm payrolls. In this case, the volatility is extremely high and the traders need to know the core information in order to keep up with the trend. However, in most of the cases the price movements are not motivated by any events, so if you alanylse all the movements, you'll have no time to execute the orders.
Also, I would like to say a few things about those guys from the videos. They only make impression of knowing everything. They just use clever words in order to seam so smart and experience so that more watchers will trust him and like his videos. If he says that here the institutional investors buy or sell, he is right, but institutions always do market operations especially when we talk about forex market. However, how can you benefit from knowing that institutional investors buy or sell the assets?
Like Ray Dahlio once said 'you shouldn't predict the prices, but you should react to the price movements'. I believe that it makes sense. It is next to impossible to make predictions which will be true all the time. You should know how to react to the market, like if the price goes to the support level you should do something or if some indicator shows you something, you should do something and so on. Market is totally unpredictable like weather: if there are grey clouds in the sky, there are still chances that there will be no rain, but the probability of raining when there are clouds is much higher than the probability of the rain when the sky is clear.