LEVERAGE: PROFITING FROM OTHER PEOPLE’S MISTAKES
The true meaning of leverage is using other people’s resources i.e., time, money, effort, etc. In this business, the majorities of players make tremendous mistakes and leave tons of cash in their wake. If you can spot these flaws, capitalize on them, in no time you’d be on your way to Eldorado. You literally sit through your hands when these players are being slaughtered (Accumulation and Distribution) and do nothing most of the time. When the time is right; trade with the people that matter.
Don’t get emotional about this. Look around you and observe nature in the wild. The Predator must hunt otherwise, she dies and the Prey must run otherwise she dies too. Same goes in the trading world. The big Institutions need the little players to facilitate deals.
Majority of the professional profit you’d make in this business will have to come from observing other people’s makes and taking advantage of them.
This ain’t no Schaden Fruede, but it’s the dynamics of market activity globally. People respond to fear quickly than they respond to logic.
Every now and then, retail traders sell an oversold market and buy an overbought market. Humans think alike so it’s easy to know in advance what they are able to do especially when they take trading tips from brokers, chat-rooms, expert advisors, trading forums, Geo-Political indicators.