Lessons from the Market

In this post, I want to consolidate what I have learned about trading and the Market.

1. Before a *support* is tested, it is only hypothetical.

2. Never catch a falling knife.  This is the game for bold traders, not risk managers.

3. (Corollary to 2) Oversold is never a good reason to buy, wait for strength to signal your buy orders.

4. Similarly, having a *support* successfully tested is not a good reason to buy, wait for strength to confirm resumption of original trend.

5. Market tends to surprise you towards close, be patient.

6. Listen to the Market.  You can have a view about the Market.  But wait for the Market's signal to trigger your orders.