
1 minute read
WHAT IS LAYMAN TRADER PSYCHOLOGY?
"MARKET ALWAYS MOVE ANTICLOCKWISE OF LAYMAN TRADERS"
In stock market trading the fact is that 98% traders lose money and 2% traders make money Trading is a zero-sum game which means 2% of the traders takes away 98% traders’ money. These 2% traders have huge money flow and news flow and in technical language they are called the operators of the market. In short term demand and supply plays an important role compared to fundamental aspects which is the basic essence of trading. When the layman trader (98% of them) enters into the trade on the buy side or sell side based on the news flow created by the market for short term trading the demand/supply created by them is fulfilled by the 2% operator Real Game Begins Now! The price will now move against the 98% layman traders and it will continuously move opposite till the time the entire 98% trader’s capital is wiped out
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In the game of Cricket, when a batsman hits the first two balls of a bowler out of the court ‘SIX! SIX!, the bowler psychology changes and instead of trying to bowl him out he tries to finish the next four balls as a DOT. The batsman takes the advantage of this change in emotions and scores more in the same over. Similarly a trader enters into the trade when the market opens to make profit but when he loses money in the first trade due to wrong trade setup than his psychology changes and instead of entering a proper trade setup for making profit he tries to recover his loss which is the change in psychology and behavior which is called emotions.
