Have A Market Mentality

Market is a sum of psychology of millions of people and money can be made only when we are with majority of people (means we are with the trend). So it is good for us, if we try to think of the market, as it is moving rather than putting our personal beliefs on it and hoping to make money. Why market will move according to our personal belief or interest?

Market always give clues of their next probable move in price.Interpreting price action for the next move is the best way to make money. Most of the traders, especially those who already made few money in market, start to believe that whatever they are thinking, is going to be right in future, in short they become overconfident. But that is not good for them and they pay for it later in market.

If  I talk about Nifty, it is trading at life time high and we are in a bull market, so we should only look for buying opportunity and avoid short selling until we found trend is changing or a major correction is starting. Now it rallied almost 1800 point (from 6000-7800), then probably a correction could come, but we do not know when and how much it will correct.

My point is, try to use completely and only technical tools during making a view of market, rather than using purely your emotions and personal beliefs.