Speculation is a business

Speculation is a business - it could be part-time or full-time

Let me give you a simple example that you can wrap your head around.

When you walk into any Sam’s club or Costco what is right there on the left in the front of the store and is normally the first thing you see? It’s TV’s and computers right?

You would never call for the store manager to come over and tell him “I love this $3500 70” flat-screen TV so much I want to pay $5,000 for it right now”, would you, no, most likely if you’re smart you would say hey can I get that for $3100? You want a deal on it right?

Why would you buy something high at retail in the market then? Why would you buy high or sell low? You want to buy at wholesale pricing and sell for a profit at retail pricing right?

Unfortunately, investors and traders especially brand new ones are conditioned to do it this way because of all the hype and information herding that goes on in this business.

There is nothing difficult about the market if you understand supply and demand and can see it on any price chart on any time frame and if you can see it and you combine it with price action you have an edge over the sheeple of the herd and everyone else who cannot. All of the information you need is right there if front of you on the chart, can you see it.

Remember, that everything you see to the left in the chart has already happened and is of no use to you in making a decision based on hindsight analysis. Important is what Price Action s happening right now and how to make money from it. The only thing which would be valuable is where the supply or demand value areas are and where price could not stay in balance, that information is something you can make a decision on.

All the indicators and squiggly lines you use will not help you in quantifying the only two things that matter in the live market other than supply and demand value areas and that’s price and time. Price and time are the only things that matter to professional traders and the sooner you get that into your trading psyche the sooner you will become consistently profitable.

Here is something you can ask yourself especially if you’re brand new in the business of making money with money. Ask yourself do I want to be the one paying or do I want to be the one who gets paid.

Brand new raw beginner traders think that trading intraday time frames are the way to go because that is what they are conditioned to think right from the very start. The hype around day trading is very strong however there is a lot they don’t tell you in the hype.

You can be a day trading speculator but it is a time-consuming business and not worth the time and effort put in. You should treat speculation as a business expecting to get a healthier return considering your time, effort and capital deployed.

If you are a raw beginner and wish to become consistently profitable in the business of making money with money you must have and use a rule-based plan which incorporates all of the metrics you will look at to do your research and DD as well as your money management.