An essential part of being a GOOD trader is to understand the market internals as it moves from bull to bear market cycles and back again. What you see, isn't necessarily what is happening in reality. I have traded the market since 1974, was a stock broker for a major Firm and owned a seat on the Kansas City Board Of Trade. As I traded on the floor of an exchange, I saw first hand how and why most uninformed people lose money consistently. They attempt to out trade the market makers and the market itself with their own scenarios of what the market should do instead of paying attention to what the market is actually doing.
Many people get tunnel vision when it comes to trading the market.
One has to realize that stocks always trade on future assumptions of a company's earnings and growth, not on today's news and earnings. Yes, a stock will react to a news event for a day or two, but will continue to move in the original trend it has set for itself. The direction of the trend is what you must identify prior to taking a position. When it comes to emotions, there are 3 very powerful ones that Wall Street uses in its favor. A good trader understands these emotions and uses them in his or her favor.