Why is the market moving like it's moving?

[raspberry pie]

Hey guys,

I'm completely new to trading—about a week in—just reading articles, watching videos, and absorbing whatever comes my way.

I have a big question that no one has been able to answer for me, or maybe I just haven't dug deep enough yet.

So, let me explain what I mean:

I watched a video where a guy summarized all the major trading strategies. Most of them have one thing in common—you apply an indicator to your chart, set it up, and when the market behaves in a certain way, you either buy or sell.

My question is: Why does the market behave this way?

Am I misunderstanding the whole concept? Is it just a pattern that emerged over time, we observed it, and now we simply repeat it?

Can you guys recommend any books or blogs that explain this in depth?

I’d really appreciate your help.

Best regards

 

[DeLorenzoFund]

I'll try my best to summarize the concept. Making money from trading (or any betting activity) would involve consistently being able to predict future events, now since most of us aren't gifted with the ability to predict the future, all we can rely on is probabilities.

Those probabilities are assessed by monitoring past events and how repeatable they are. you look for things that happen more often then not and place your trades based on those probabilities, this is what is defined as your setup, the event that you have identified as a high statistical probability of doing what you have seen happening in the past and being repeated.

There are multiple valid strategies available out there, strategy and setups alone won't be enough to make money, testing, trading psychology, risk management and position sizing are all factors that define you as a trader and your strategy, you can have a solid strategy but without proper risk management or the required mental fortitude to continue when times get though it won't work, this is what makes trading hard but also special.

Best of luck to you and last piece of advise, focus on studying but careful of all the bad advice found on youtube or anywhere online, once you build bad habits it will be hard to reverse them. Trading can destroy you mentally and financially if you are not careful, start small, this is a skill that will take time to develop.

Read Mark Douglas books and keep them in your shelf forever! 🙂