SIMPLIFICATION

There is a temptation, when faced with complexity, to reduce and simplify. That is sometimes necessary, even good, but how much simplification does this complex market allow before it punishes you, not for simplifying, but for being simple? That is the question all traders face everyday. There is no easy answer but finding an acceptable, workable answer will make you a winning trader. It will require you to grapple with this complexity and find your own way through the maze. If I am making it sound difficult then let me say that it really isn't. It's not a stroll, but most people will manage if they apply the basic rules. There are buyers and there are sellers. Sometimes the buyers are in charge and the market moves up. Other times it is the sellers and the market moves down. And sometimes the buyers and the sellers are slugging it out with neither gaining the ascendancy and the market moves side-ways. But within this seemingly simple ‘battle' a lot is going on behind the scenes.