Ofc, but how do you know when others are selling and buying. It seems too simplistic in some ways, are people that dumb that they haven't asked these questions that I'm asking. When they start losing money do they not ask these question "how do the pros do it?" or do they just quit trading and another person comes in and fills their spot?
Are you saying there's a constant stream of new traders coming in and losing money while the more clued up people sit and snipe their money?
Retail traders are typically caught out by either being scared, or greedy. They get scared when a position moves against them, panic, sell and liquidate losses. They get greedy when a position moves their way, and instead of banking the profit and taking the win, they end up buying more.
My strategy, is to not even think about where the price *might* go. I look at the facts, the history, the underlying business(es). If it's a good business and stock has made a sharp rise, it's a sell signal. If it's made a sharp dip, it's a buy. This works for me. Once I've closed the position, I don't care what happens, the trade is done. I might re-enter that instrument again in future if it takes a tumble, but I don't look at what happened
after I closed the position to measure how good the trade was.
If you are trying to trade something that is as volatile as 5-6% movements in an hour. You will lose. Thank me later
