Page 87 - THE MARKET WHISPERER
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THE MARKET WHISPERER 85
Prices move in only three
directions: up, down
& sideways.
The Price Says It All!
The stock market is like a huge giant that constantly changes its appearance.
Every trading day is different from the preceding one,and every trading
hour is different from the hour before. As the ancient Greek philosopher
Heraclitus once said, “You cannot step in the same river twice.”
The stock market is the outcome of the sum of all persons operating on
and in it. Each has an individual opinion and thoughts, and individually,
each pushes the market in the direction he or she is able, whether as a
buyer or seller.
Can we nonetheless know what the sum total of persons operating
in the market is thinking? Of course we can. A quick glance at that most
important piece of information gives us the answer: the price.
A dynamic market which constantly changes is inherently challenging.
Our human thinking processes are very standardized. Most people wish
to demarcate concepts within boundaries, and sort and catalog things,
whereas the market is highly dynamic. To cope with this challenge, you
will need to become closely familiar with the market, the principles of
stock trading, and how markets behave. This will enable you to establish
your own work program, your own rules and limitations, and apply them
when you join the market.
The Market Is Always Right!
The stock market’s conduct as described has given rise to two similar
statements: “the market is always right” and “the price is always right.”
At any given moment, the market and the price consistently embody all
