Psychological Challenges There are valid reasons why trading is inherently difficult. Markets are highly random, and any advantage we might find is quickly diminished by the presence of smart, well-funded competitors. Many traders also operate under various constraints, and markets … Read More
In the intricate world of global finance, institutional investors – such as pension funds, BlackRock, Vanguard, Fidelity and sovereign wealth funds – are pivotal in shaping market dynamics. Their investment decisions, often amounting to billions, are influenced by a complex … Read More
As you already know, technical analysis is the way we study the psychology of market participants. Tools for the analysis were given in the technical analysis block. Here, let’s break down participants into three categories: those who are positioned long, … Read More
When a public company issues a press release or some other news becomes public, it can cause a stock to be “in play.” This is especially true if the news brings unexpected and significant information. Such news attracts more attention, … Read More
News catalyst. You should apply common sense when reading news catalysts. Common sense tells you that if earnings are up 1% and the stock gaps up 1% with relatively no volume, that’s probably not significant news. You want to see … Read More
While big money often can’t dump or add their size during illiquid hours, that doesn’t mean they don’t do anything during pre-market (PM) and after-hours (AH) trading. They know the prices they want and are happy to provide liquidity and … Read More