Share trading is a game of strategy - like chess - where you don't want to be just reacting to the movements of your opponent's piece . His move is intentional to prompt you to move yourself into a position that endangers you, or makes you discard your own plan of attack. You can't only follow movement, unless you only hope to gain a small increase and then sell. (i.e - quit the game and move onto another board that has a moving piece). We have to study the set up of the whole board. This doesn't mean that you are constantly on edge , fearful, and jumping at every plunge . It is quite the opposite. When you study to know the market maker's "next 3 moves" , he will loose the advantage of surprise. The market maker has to dominate the board, and get all the players who can be manipulated, into making the moves that advantage him. He has to do this before he makes his genuine moves, otherwise we stand in his way. In the context of day trading, we are very focused on the piece that is moving and are largely unconcerned with the larger set up on the board (the positioning of the market maker ) To know if that one moving piece , can be safely followed , or is a trap, we need to be anticipating the Market Makers "next 3 big picture moves". Studying historical charts can teach you that. The study of the entire board, will help you to interpret the piece that is moving, and allow you to rest in your trading. First comes work, then comes rest.
