Time in trading

in #trading7 years ago (edited)

Hi, Mike here.

I will try to explain why the variable of time is irrelevant to trading.

Trading is moving money from one person to another and these transactions happen in the moment.
Price of a currency, a commodity or a stock moves because someone is doing aggressive buy/sell.
Price doesn't move because its 2am, 5pm, 11pm. Price moves because money are coming in/out of the market.
Price moves in the moment, and what happened few seconds ago is irrelevant for current/future transactions.
Past transactions don't influence current/future.
If nobody trade for 5 minutes price doesn't move.
If nobody trade for 20 minutes price doesn't move.
Price moves because someone is moving money.
There are a lot of myths in trading, and time is of them.
When you are looking at 1 hour chart, each candle is 1 hour behind. You are trading the past. You are trading past actions, and past actions don't influence current/future actions.
Take 10 minutes of your time to see this video, it is worth it because it has the potential to give you a better vision of trading.

Expand your mind, question everything.

Mike

Sort:  

Congratulations @mikelaw! You received a personal award!

Happy Birthday! - You are on the Steem blockchain for 2 years!

You can view your badges on your Steem Board and compare to others on the Steem Ranking

Vote for @Steemitboard as a witness to get one more award and increased upvotes!