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Secret 3

The best trades are the hardest to do

You need to have guts, and you need to be aggressive on entry. Quickly cut your losses when the market is not acting right. The news always sounds the most bullish at the top and appears to be the most hopeless at the bottom. This is why the technical tone of the market is so important. If the news is good but the market has stopped going up, ask yourself why, and then heed the call. Bottoms can be the most confusing. The accumulation phase, where the smart money is accumulating a position, can be marked by reactions, crosscurrents, shakeouts, and false reversals. After the bottom is in place, many traders look for the next break to be a buyer. After all, the market has been so weak so long that the odds favor at least one more break, right? But it never comes. The smart money won't let it. The smart money's objective after the bottom is in place is to move the market up to the next level. The best time to buy might actually feel very uncomfortable. However, the train has already left the station, and you need to have the courage to hop on for the ride.


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