InvestorQ : Can I become a good trader by listening to the market?
Angel dcosta made post

Can I become a good trader by listening to the market?

Crowny Pinto answered.
3 years ago

In fact, the only way you can be a good trader is by listening to the market. The trader has a simple rule; never try to outsmart the market. Don’t think that you know more than the market but believe that the market is always right. But the market also gives some very subtle messages. For example, you expect the market to come down based on negative global cues, but the market shows strength. How do you interpret this? Should you try to take a contrarian view assuming that the market is wrong? Or should you just go with the flow assuming that the market knows more than you know? The latter is a better choice for a trader. When you go against the wind, you may benefit as a long term delivery investor. But as a trader, you have constraint of time, capital and loss taking capacity. You must, therefore, begin with the assumption that the market is right and plan your trades accordingly. The market is always giving you a message of the underlying momentum of the market and it is best to stay as close to the momentum as possible. As a trader, what the market is trying to tell you matters a lot more than what you are trying to tell the market.