#04 Market Basics 1.0

This is the first in a series of episodes covering the basics of the market. Keep in mind I SUCK at explaining myself and tend to skim over things a little too fast. The topics covered in this video are:

Trading is Math & Psychology
How charts are comprised and read
What the markets are
Supply and demand
Recent prices help determine future prices
Understanding how and why "Anything can happen"

All of these issues will be covered with more detail in their own time, I just felt it was necessary to give at least some explanation of them now.

Category:

Howto & Style

Tags:

• Trading
• currency
• market
• basics
• supply
• and
• demand

[mayo367]

In your explanation, you're insinuating that the drive upward starting from the 2nd week of December 2008 towards this most recent high on December 18th was attributable to or the assumption that the market was unpredictable & that no one could know what would happen.

[orionmachine]

My statements are about prices in general in relation to the unknowable variables that will affect future price. There are highly probable variables, none of which I have covered in any of my videos yet. That daily chart was only for display, and I was not specifically concerned with it nor am I now. I do not trade the daily chart so I do not care much about it other than intra-day setups.

[orionmachine]

I believe you do not need to know what will happen to make money trading. You are welcome to your own beliefs.

[mayo367]

There was a logical explanation for why the EUR/USD moved upwards with great momentum. The EUR/USD was in a trading range, buyers & sellers were battling for control of market direction, resistance was collapsing, the sellers argument was becoming less & less credible, after this occurred the buyers influence & authority was so great that sellers could not easily contain it(bullish sentiment) until the sellers regrouped at a more profound area of resistance, the high of 1995.

[orionmachine]

I don't mean to insult you, but this these videos cover "market basics" and are designed for total beginners. I only have 10 minutes at a time to get a CLEAR point across. How many beginners would really understand things, if I gave them your explanation? While I understand the logic of the move perfectly, I am not concerned with confusing beginners with that crap yet. I am covering things from a different angle first.

[cartekk]

I kind of like the music, keeps me more focused actually. I can never concentrate on just one thing but the music here was perfect to fill up whatever spare concentration that would otherwise keep me from listening properly :D

[orionmachine]

Thank you for your comment cartekk, I do enjoy the music, the guy that programmed it is "Fuego" thats all i know about that... It is funny how music if it is right, can help you focus.

[TheLinspec]

very interesting stuff, from someone who has been through the school of hard knocks in trading but i wish he would stop that music it makes it hard to concentrate on what he's saying.

[palermo131]

Maybe this isn't quite relevant, but we seem to be good a predicting the future when it concerns people we know or our pets, etc. We get that way from familiarity with humanity in general and loved ones in particular.

This to me, is analogous to general understandings that markets "behave" in certain ways and the same follows for a particular commodity, analogous to the behavior of an individual.

It may be safer to assume that the markets behave more like wild beasts, and less like people.

[StockHunter20]

No prob, merry christmas to you also.