By Rick Ratchford
The reason most trade is to make profits. Rarely do we do so for the sport of it. There are some, however, that do treat their trading as if at the game tables of Las Vegas. Those that do, unfortunately, are soon sent packing to their day jobs so that they can return with another stake to try again. But if you are one of those who think trading should be taken more seriously, keep reading.
Trading is difficult, and then again, it is really simple. Perhaps it should be said that trading is simply a state of mind. What may appear daunting a task to some may yet seem as a catwalk to others. The glass is half full, the glass is half empty, that sort of thing.
How does trading appear to you? Are you overwhelmed with all the news? Or is it all the technical indicators being tossed into your trading programs making your eyes go cross? Perhaps it is all the different trading programs themselves that have you looking dumbfounded out your office window, staring into space and making strange sounds from between your drooping lips.
Well, maybe some choice words here might help clear up that situation for you. A little perspective can go a long way to getting you to see the market in a whole new light.
If the markets moved haphazardly with no rhyme or reason, I would suggest to you to run for the hills and do not look back. Fortunately, this is not the case. With all the conviction in the world, I know for a fact that the markets are governed by natural laws that make it predictable in various degrees. What degree they are predictable is more dependant on who is doing the predicting and how.
The mere fact that the markets have a tendency to trend says a lot about how much randomness it contains
