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Trading In One Market Than In Many

Develop a relationship with that market, as though it was one of your best friends. Know the market's personality and feel its spirit to become one with it. Watch it carefully in various time frames. Watch it every day.

One of the best experiences for a beginning trader, who may want to become a professional trader, is to sit in front of a monitor for a month and observe the market. Make price charts of bars of various time lengths and study them at the end of each day.

Occasionally you will not technically understand what is unfolding. Then, switch to charts of longer time periods to change your perspective. The market may appear irrational at times, but it will usually act like a trending or swinging market should, having tops and bottoms within well-defined parameters.

The market is a living breathing organism that behaves according to the collective psychology of its participants, yet develops a singular personality. Talk to the market. Ask it, "what do you want to do?" It will answer you in the hieroglyphic language of its price bars. It will tell you in which direction it wants to trade, how far it wants to go, and when it wants to arrive following the path of the least resistance. Like deciphering the Rosetta Stone, which allowed scholars to read the ancient Egyptian language, market traders must learn to correctly decipher price charts.

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Monday, 24 February 2020

Derivative transactions, including futures, are complex and carry a high degree of risk. They are intended for sophisticated investors and are not suitable for everyone. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results, and all of which can adversely affect actual trading results. For more information, see the Risk Disclosure Statement for Futures and Options.