So you see, the whole stock market works on supply and demand. That’s the bottom line….

In comes Danny…

“It’s so frustrating!”

Why, what’s up Danny?

“ I bought ABC and it drops… So, I held on as long as I could but the moment that I sell it, it pops back up! What gives?”

Don’t be so hard on yourself Danny. It happens to most of us. Majority of this game is based on psychology more than art. You know, you are playing with the sharpest minds from all over the world. And they’re not here for your well-being. You have to first conquer your inner demons before you can go to battle.  9 out of 10 traders lose money.  That’s the statistic.  If the stock market is a place where anybody can come and take money from the professionals, Wallstreet would go bankrupt.

I was just like you a decade ago. Armed with a library of books, attended numerous seminars.   I thought I have the tools, artillery to play this game.   I went through the same hard lessons the market threw at me like everyone else in this business went through when they first started.   I was naive to think that it was an easy game.

“Well, if 9 out of 10 people lose money, that’s easy then. Just bet the opposite side of what you intend to trade. You’ll have 90% chance of succeeding!  lol”

It doesn’t work that way my friend.

As I have mentioned before, it is professional money that moves the market. Professional money as in “true” traders, fund managers, etc… who can “see” everything in the market. Things that you and I are not priviledge to see. They know when demand comes in, when supply comes in. They even know exactly where your stops are.

Professionals don’t trade like you and me. They aren’t under the same type of emotional pressure you have. They have billions in their account that can move and manipulate prices any direction they like. There’s nothing wrong with it. This is a business and like any business, they are out to look after their own account. If you’re them, you would do the same thing. If this game is easy, then everybody would be making money. That’s the reason why you get whipsawed like crazy.

That’s all there is. Supply and Demand. Where there is demand, the market goes up. Where there is supply, market goes down.