These days we watch as the trading world gets bombarded with information. Since the start of the coronavirus scare the media has been reporting doom and gloom all day long. Many people are have become paralyzed by the news; almost afraid to go outdoors. After all, a virus that has killed people is very scary, so it is understandable when you see the reaction in the public. It has been very difficult for people to get real facts about anything since we now have bias and slanted news. This cannot be disputed regardless of what your political views may be.
As a trader and investor, it is important to trade what you see on the charts. This is actually the reason why you want to use charts, so you can cut out the noise and opinions of the media. You see, charts represent the money flow in the market. Basically, reading a chart is simply reading the footprint of human nature. As we all know, human nature never changes and as Jesse Livermore says, that is why the stock market does not change either. What has happened before will eventually happen again. It may not repeat exactly, however. There could be different characters involved, but it will repeat nonetheless. This is why mankind has been at war since existence. Everything simply repeats over and over.
The same goes for stocks. This is why we use charts, because the patterns repeat over and over. While not every trade will workout perfectly, the majority of them will if you read the charts correctly. This is why you want to trade what you see and not what you think.
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