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5 Things Most Traders Don’t Know About How Prices Move in the Markets
Let me ask you a simple question…
How and why do prices move in the markets?
Most traders will give one of three answers:
- Admit they don’t know.
- Give a vague explanation about supply and demand.
- Spout some imaginary nonsense or conspiracy theory.
The truth is, at least 99% of traders I meet (or see teaching online) don’t know how the markets actually work.
And that seems pretty crazy to me!
How can you be confident that you have a profitable trading approach, if you don’t know how and why prices move?
Imagine designing aeroplanes without understanding aerodynamics.
Imagine forecasting the weather without knowing meteorology.
You get the idea.
It’s because people lack this foundational knowledge that so many flawed trading methods become popular.
So, in today’s piece, I’d like to share five important things most traders don’t know about how and why prices move.
If you want a more in-depth understanding of this topic, read our full guide for a more detailed breakdown.