The banks, institutions
and the specialists have all the financial resources to move
prices up or down. Trillions of dollars are exchanged daily
across the world's stock, currency and commodity markets.
Hundreds of millions are spent analysing crop reports, business
sectors and economic figures.
All other activity, including the combined trades of thousands
of individuals like you and me, represents only a tiny fraction
of the money and resources flowing in and out of the market
on a daily basis.
You may think that's pretty obvious. But ...
Markets don't react to professional
activity the way you expect them to.
In every market, there's an undeclared understanding
amongst professional traders. It alerts them to what
the big money is doing. It's based around observations
surrounding volume activity and the effect this has on the
price and the spread.
To us outside observers
this activity normally goes unnoticed - an insignificant and
unexplainable blip lost amongst the 'noise' of the markets.
If you've ever watched the Dow or a stock price over any period
of time, you'll know that prices can fluctuate wildly. But
there is logic behind all this chaos and the professionals
know exactly how to profit from it.
They
know what the signals mean, yet only a tiny minority of non-professionals
know what's really going on.
As you'll see
in graphic detail later, knowing how to read the market will
allow you to take the professional's lead and boost your profits.
Understanding professional moves will allow you to uncover
the true market sentiment. It will give you a clear indication
of which markets you should hold positions in - whether buying
or selling stocks, or going long or short on futures.
It's obvious that there's no
way to beat the professionals or match their financial might,
but you can follow their moves. The professionals can't disguise
their true intentions.
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