Jr. The starting point for success in trading the markets profitably is to perceive market reality accurately. While this may sound obvious enough, most traders enter the marketplace with preconceptions, biases and incorrect perceptions of market reality. They soon learn, however, that the market is a ruthless taskmaster. You either line up with the market's reality, or you lose money. The market's consciousness, it seems, justifies itself in its harshness, as it points out to traders that there are only three realities possible in the marketplace.
Markets can either move up, move down, or drift sideways.
This simple recognition or, perhaps, the not so simple recognition of which of these three realities is active at any particular time is all that is necessary to trade successfully. All of our analyses of the markets are supposedly for the purpose of bringing our focus on the market reality so we can trade profitably. 5 year subscription to Working Money. Free book selection. Limited time offer.