Learning to Trade is Learning About Life

Yes, learning to trade is learning about life. Knowing trading is knowing life itself. In the price movement which is described in the form of an arrangement of candles on the chart, human psychology is reflected. Reflected the collection of basic human emotions, especially fear, greed, and hope. It is these emotions that drive human behavior, traders, especially in crowds. The behavior of traders, especially buying and selling driven by fear, greed and hope, is clearly reflected in price movements. The movement is sometimes flat, sometimes it rises or falls quietly and slowly, sometimes it soars up, and continues to rise as fast as possible. Sometimes it falls down and continues to fall freely as if falling into a bottomless abyss.

Humans, including traders, tend to move in crowds. Tend to go with the flow, either consciously or just drifting away. When someone buys, the price moves up. Seeing prices go up, people are attracted and buy, which makes prices go up even faster. Seeing prices soaring faster and faster, people getting more excited to buy, and more and more people being moved and swept away in the crowd of buyers. On the other hand, when sellers take control and prices fall, people will flock to them and push prices down even faster. That's why prices move in trends, and trends tend to continue, unless there is a significant change.

That's why traders need to know crowd psychology, mass psychology. If we know crowd psychology, we can predict the behavior of traders in the crowd, and we will be able to predict price movements accurately, or almost accurately. On the other hand, if a trader can predict price movements consistently, it means that he has mastered the psychology of the masses, has known life.