Page 31 - THE MARKET WHISPERER

30 Introduction

while the retail investors are at their day jobs. The automated stop orders
will be executed when the preset conditions appear.

Our advantage:
• Looking at the stock’s graph, it’s easy to estimate the point where

automated stop orders will be executed. Can this information be used
to someone’s advantage? Of course it can!
• Let’s say that at a certain price, we see a strong chance for a heavy
concentration of stop orders.
• In other words, if the stock price drops to this figure, a large number of
stop orders will go live, which could likely push the stock price down
further.
• Can we profit from the expected drop? Of course! We can sell “short”
(which we’ll learn more about later) and profit from the price drop.
This is how making use of information can be an advantage.
I relate to stock trading just as any other business. I won’t trade without
an advantage. I know that competitors are operating against me and want
my money no less than I want theirs. I know that to survive and profit, I
must identify my advantage and maximize it. I recommend that you, too,
relate to your money with due respect and conduct yourselves accordingly.

Precise Knowledge or Art?

Day trading stocks is an independent profession in which we buy cheap
and sell at a high price, taking advantage of other players. As traders, our
goal is to succeed in about 65% of the trades that we make over time. Day
trading is a simple profession to view, but difficult to implement. It’s simple,
because the rules are simple. It’s difficult because of the psychological
inhibitors that express both our fear and greed.

SMART Day trading is an art integrated with precision knowledge.
MONEY The rules for the precision knowledge can be learned, but
the art needs to be developed.

Day trading lies partway between relying on precise knowledge and
being an art. Day trading will not be successful if based on technical
analysis alone. If that’s all that was needed, it would be accounting. A
winning trader succeeds in merging knowledge and artistry. This book
sets out to provide you primarily with knowledge, and a touch of artistry.
The artistry is up to you to garner as you work hard and accrue experience.