Avoiding the Market Traps

With the market volatility at an all-time high, it’s no wonder traders are filling the markets with emotional trading decisions. The influx of new participants flooding the market, has Market Makers and Institutional trades licking their lips. It’s almost like shooting fish in a barrel.

The Street knows exactly how to play this game to entice the emotionally uneducated novice trader.

We often talk about the lack of a ‘barrier to entry’. In short, it’s how the retail side that makes up the markets, are heavily filled with those with nothing other than dollar $$$ in their eyes. Blindly putting on trades just to put on trades; with no actual fundamental reason other than they saw someone talk about stock “XYZ” on Twitter or some other social platform.

For whatever reason, novice traders trade as if they need to retire tomorrow. The Street knows this and they intentionally manipulate price, which lures in the uneducated trader and gets them to provide liquidity for the real moves. It basically boils down to excitement. New traders of the market, are excited just to be “in” the market to begin with. The fact that anyone with a few bucks can open a trading account and put their money to work, is a very dangerous option for most.

Yes, without risk, there is no reward — we are all about that. Obviously, we’re traders of the market. However, successfully trading the market year in and year out, requires understanding how the market truly operates. A broken watch is right twice a day — and when a novice trader makes money on a random trade, it offers a false sense of confidence.

Stock don’t just go up — imagine that?

We all witnessed everyone talking about their Robinhood trading accounts and how they made X amount of money buying company ”XYZ”. But what you didn’t hear, is how they lost the X they made and then some! You only hear about peoples wins; you hardly ever hear about their losses. Why do you think that is?

Simply put, people do not want to admit they are wrong or made a wrong decision. SO, what happens, win a new trader enters without any proper education of the market, gets themselves into a position that goes against them, what do most of them do? They begin telling themselves that “it will turn around, I’ll just wait”. So, they don’t exit their losing trade. This ultimately gets them deeper in the red. Until eventually, the market reaches their breaking price point and forces them to sell their now very big loss. If they would have just had a clearly defined trade plan BEFORE entering their position, then a pre-determined stop loss level would have safely gotten them out of their losing trade with a calculated and minimal loss.

That said, how many times have you’ve been stopped out over and over again, only to see the security finally do what you’d thought it’d do? We’ve all been there; don’t worry.

It happens to everyone.

Those of us that don’t fall for those b.s. traps anymore are the ones that have put in the time and effort to perfect our craft.

Once you become aware to the “f@#kery” being orchestrated by The Street, you can sit back and watch the traps catch the uneducated and then capitalize once the real move begins.

Trade Smarter.

Consistently Profitable.

That’s The Goal.

Start with a crystal-clear vision of where you’re headed, then effectively lay the foundation to reach that goal through a systematic process.

That’s The Street Trading.

We provide a straight-forward, no-nonsense results-driven trading education, that cuts through the noise to teach new and existing traders on how the stock market truly operates.

Our attention is focused on building actionable knowledge about the markets from the ground up. We construct a foundation of the fundamentals behind consistently profitable trading that you can build a career on. Take the guess work out of trading and ultimately understand what moves the market to finally flow with the Street and Trade with Clarity.

Day Trading | Swing Trading | Position Trading — It all comes down to managing risk and market psychology.

We look forward to joining you on your trading journey!

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