InvestorQ : What are some of the key learnings from the stock market?
Abhisha Yadav made post

What are some of the key learnings from the stock market?

Answer
image
Abhisha Yadav answered.
3 years ago
Follow

There are 3 kinds of wisdom that the market offers. Firstly, the combination of price and volume momentum gives you a clear indication of when you need to be long on the market. Secondly, the combination of a weakening price chart and negative volumes indicates when you must be short in the market. A smart trader is one who is able to read these indicators and translate them into a trading decision.

The third, and probably, the most important indication that the market gives is when you should sit tight and do nothing. Typically, when the market signals are very confusing or when the markets indicate high volatility with an uncertain direction, the signal is to sit on cash and not try to outsmart the market. Trading is as much about doing nothing as it is about buying and selling. In fact, the most critical decision for any trader is when to sit tight and do nothing. Only the market can indicate that.

3 Views