The crowd is almost always wrong at major turning points. When taxi drivers, barbers, and your brother-in-law are bragging about their stock gains, sell. When CNBC is running "death of equities" specials and everyone is depressed, buy aggressively.
Most investors mistakenly believe stocks rise solely on "fundamentals," but market participants rarely agree on what those fundamentals actually are (e.g., P/E ratio vs. cash flow). Instead, successful trading acknowledges that stock prices are representations of human emotions, dreams, and aspirations. The Big Picture
Price is vanity; volume is sanity. A price move without volume is a lie. Secret #6 reveals that institutional money leaves footprints. A breakout is only valid if volume is 150% above the 20-day average. If volume is low, it is a "phantom bar" designed to trap retail traders.
By the time news hits your screen, the "big money" has already priced it in. Trade the reaction to the news, not the news itself.
The crowd is almost always wrong at major turning points. When taxi drivers, barbers, and your brother-in-law are bragging about their stock gains, sell. When CNBC is running "death of equities" specials and everyone is depressed, buy aggressively.
Most investors mistakenly believe stocks rise solely on "fundamentals," but market participants rarely agree on what those fundamentals actually are (e.g., P/E ratio vs. cash flow). Instead, successful trading acknowledges that stock prices are representations of human emotions, dreams, and aspirations. The Big Picture
Price is vanity; volume is sanity. A price move without volume is a lie. Secret #6 reveals that institutional money leaves footprints. A breakout is only valid if volume is 150% above the 20-day average. If volume is low, it is a "phantom bar" designed to trap retail traders.
By the time news hits your screen, the "big money" has already priced it in. Trade the reaction to the news, not the news itself.
