No Fresh Money No Profit

11 March 2019

In the world of trading, gaining is important to get profit. Even in the stagnant market still could make a profit, but not much. As long as not "weak hand" the loss can be prevented at minimum basic.

The problem in the stagnant market usually happen when no fresh money flow in the market. Perhaps investor wait and see, or still not interested invest in current market. Also in worst condition, investor left the market, so selling or short the stock in position dominate the market.

In stagnant condition, better to have enough cash to counter the fall of the market. That's why we would see so many selling on beginning then stop when already reaching "exhausted" point. Trader or investor will see the bouncing of the market, that usually happen in periodic time.

Perhaps should learn the chart of the current stock carefully, because not always give same position. The bouncing of in the chart not always give sign of restore market, perhaps just too oversold, then again continue to fall again. This is the time to sell also if the market continue to fall.

We see short investing is too risky and only make a little profit, but if could learn how market move, could gain in many times as possible. That is the problem if no fresh money entering the market, everything have to be held as much as possible, otherwise market will continue to fall. Just make a little bet medium investment could change the market direction.

Always carefully also listen to the news, because good news not always change the market to up direction. Perhaps only the a moment then start to fall, usually the "whale" on sale. They just make the market according to their purpose to sell their stock in good price. So why buy on high, better wait patience and buy on the dip.
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