Trading Philosophy: The “Market is Always Right!

By | March 29, 2024 1:36 pm

The market tells you (actually points in the direction) where it wants to go.

As markets move they leave behind what I call a “footprint”, this footprint is price action and it sometimes leaves us clue as to which direction it is heading next. These “clues” are known as price action trading signals / price action patterns / price action setups or price action trading strategies.

What we are seeking is a price pattern and a price action signal to give us some “confirmation” for an entry into the market.

The key principle of my Price Action Strategy is to keep things simple. I am against over complicating trading. In my opinion, the simpler the trading method is, the more effective it will be. With my Price Action trading strategy I aim to keep my charts as clean as possible (just price & time…NOT (lagging) indicators).

My job as a trader is not to will the market to go where I want it to go, but rather to discover which way the market is going and join it – get in step with it.
That means total surrender of my will to that of the market. Surrender to it and go with it. If you set your will against the market, you will invariably be smashed. Forget being right! Concentrate on the fact that the market is always right.

I look at price patterns and market action (NOT indicators) as it is occurring NOW!

I look at a clean (“naked”) price chart consisting of just at PRICE & TIME goes to the core of my trading philosophy and approach, which basically says that I look to the market itself for my decision-making process.

My strategy is to let the market put me in trades, and the market to take me out of trades.

This objective analysis enables me to have a sizable edge in terms of identifying market breakouts and/or reversals (turns) very early.

Implicit in my approach is that it is more important to determine where a market is going (up or down) rather than the why behind it. I am indifferent to the direction of markets or the reason(s) for it going up (or down), rather my focus is on the precision of my entry points and controlled risk.

“You can’t win without an edge, even with the world’s greatest discipline and money management skills. If you could, then it would be possible to win at roulette (over the long run) using perfect discipline and risk control. Of course, that is an impossible task because of the laws of probability. If you don’t have an edge, all the money management and discipline will do for you is to guarantee that you will gradually bleed to death.” Incidentally, if you don’t know what your edge is, you don’t
have one.

Category: Trading Education

About Bramesh

Bramesh Bhandari has been actively trading the Indian Stock Markets since over 15+ Years. His primary strategies are his interpretations and applications of Gann And Astro Methodologies developed over the past decade.

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