8 Key Insights to Understanding Markets

AfraSimon
08:33

How I learned markets (with no finance background), before ever looking at a chart.

One. “Learn the game of business”. The incentives. Internal politics. How things operate. What drives leadership. Signs of struggle. You can piece the puzzle together.

Two. “Psychology & game theory”. Why humans make decisions. What drives behavior. How emotional responses are triggered. Understanding pain & euphoria.

Three. “Money motives”. Who's stands to gain. Who's pulling the strings. Where are commissions being made. When is a spread earned. What are the INCENTIVES for all parties involved.

I need a fundamental understanding of where every cent is going, and *why* it's going there.

Four. “The real world”. Social media narrative. Relationships. Themes. Trending topics. Pop culture. What's "cool”.

More powerful than it ever gets credit for.

Five. “History”. How’d a company act in the past. What’d clues can you pull. Founder led company? Any patterns in decision making. It always rhymes.

Six. “The players”. Understand positioning. Who’s playing. Who’s responsible for making the market…are they powerful? If you make money, whose pocket is it coming from.

Much like chess, theres a variety of players who all serve different purposes. Know your competition.

Seven. “The facade”. Learn the tricks. The trap doors. The common mistakes. The unwritten rules. The picture perfect setups that fail.

If you truly understand the game, you can sniff out the tricks.

Eight. “The clock”. It’s all about time. Timeframes. Timing. Time of year. How long you’re holding positions. When to cut. When to have conviction.

Markets are intricate, yet simple.

Understand this.

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