How to understand the stock market



The study of the psychology of trading will never end thanks to new trends and unusual self-taught decisions. They most often watch webinars, comparing entry points, and then make decisions. This approach is completely wrong. You need to understand the market, be constantly aware of all events. Traders who have been working in the market for more than two years have figured out that one entry point will not give clear information due to the variability of the entire environment. It is necessary to constantly adapt to different situations. Trading cannot be reduced to one pattern to which all work is supposedly tied. Alexander Gerchik, a trader with 18 years of experience, realized that it was necessary to understand the psychology of the market in order to make a profit.



Market analysis for beginners
To understand the market, you need to gain experience. It is only with time that an understanding is formed of how the forces are located – who sells, who buys. The school of trading Alexander Herchik will explain the following patterns:
  • When the market works in a trend, strategies that go against the trend and breakdowns will work. This happens due to the appearance of a large amount of money in the market.
  • A fall of 2-15% is a normal event. Correction occurs, starting from 20%;
  • the maximum number of instruments in the US stock market – 25%;
  • Trends are about 25-30% of tools.
False breakdowns can be included in the list of constant values. Experienced traders won’t take risks and go against the trend too soon. The largest deals on the exchange are made with kickbacks and stops. It is necessary to monitor how strong the pullback will be in order to get the maximum benefit (or lose the minimum in an adverse situation).
All about trading for those who really want to make money
What you need to learn for a trader who decided to trade stocks, securities, metals:
  • If the trader does not change his strategy faster than the situation in the market changes, losses cannot be avoided. You need to learn how to adapt ATR and foot;
  • You need to understand that the market is constantly changing.
With a lull in the market movement will be minimal. The trading strategy should be changed at least once every two years, so as not to remain on the sidelines of all trading activities. It is not necessary to change all trading tactics completely. It is necessary to adapt it to the new realities that will inevitably come. During the transition period, it will be most difficult to prepare for losses that will be compensated over time when stabilizing and finding the optimal strategy.
The method of trader Alexander Herchik for traders
When learning to trade, you need not only to use programs for automatic strategy correction (risk management), but also learn to independently recognize the source of problems. It will be much easier to identify psychological problems related to the situation in the market. In case of such situations, it is better to describe it on a separate sheet. Sometimes you can make a list and then decide everything in turn.
Alexander Gerchik offers many instructions, strategies, and analytics on his website. There you can find all the terminology that will be useful to beginners. The main thing that traders need to understand:
  • Market history may be repeated depending on the situation.
  • There is only a seller and a buyer in the market. They are determined by schedule. This allows you to predict the price movement of the asset.
Over the past two years, there has been a tendency for traders not to do business on standard patterns. Large traders can be calculated by offsets on the chart.

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