There is an old saying

" Fail to plan and plan to fail "

Did you know 90% of all traders lose money in the stock market, including professionals in trading pits.

That's because they don’t have a plan or the plan they are working is bad.

Unfortunately, many traders lose in the stock market because they trade with hunches, instincts and emotions

Wasting time and money on books and courses that don't work, buying a charting program, opening a brokerage account and starting to trade without a plan is a plan for disaster.

Successful traders have one thing in common, a trading plan that they implement with confidence.

Jesse Livermore the most successful trader in the world during the early part of the 20th century lost everything, because he did not stick to his plan. He wrote, "My plan of trading was sound enough and won oftener than it lost. If I had stuck to it I’d have been right perhaps as often as seven out of ten times."

If you have a plan, stick to it. If your trading plan is not working, then you need to consider another plan.

The most important feature of the plan relies on reversal patterns created during the course of any trading day. Market dynamics display trends that simulate patterns. For every buyer there is a seller and vise verse.

Ralph Nelson Elliott published a series of articles in Financial World Magazine in 1939 describing how the Dow Jones Index moves in rhythms.

According to Elliott, everything moves with the same pattern as the tides- low tide follows high tide, reaction follows action.

Elliott wrote, "Nature’s law embraces the most important of all elements, timing. Nature’s law is not a system, or method of playing the market, but it is a phenomenon which appears to mark the progress of all human activities. Its application to forecasting is revolutionary."

A pattern is always in progress, forming over and over.

For example, In the course of a trading day, the first reversal period takes place approximately 9:50 A.M. to 10:10 A.M. after the market opens at 9:30 A.M. One reason this happens is that the market makers and specialist often take the opposite side of your trade. Remember for every buyer there is a seller. They will "bring the stocks in" to adjust their position.

At 10:10 A.M. the market resumes. The next reversal takes place at 10:25, but last only five minutes. You may not notice it. By 11:30 traders start taking profits before lunch, and institutional managers leave for a break. The pattern subsides.

After lunch fresh action moves the market between 1:30 to 2:30 P.M. The next reversal begins at 3:30 P.M. when Treasury Bonds close. Institutional managers adjust their positions for the following day and traders exit their position.

Knowing that the market is driven by the human machine, it follows the laws of nature. Support and resistance, or Action and reaction. Timing plays a critical role in making profits in the stock exchange.

Anticipation and recognition of market direction with Fibonacci retracements , Bollinger Bands, Relative Strength Index, Moving Average Convergence-Divergence, On balanced Volume, Stochastic Oscillators, multiple time frames, Candlesticks, Pennants and triangles Flags and wedges, Head and shoulders, double tops, cup with handle, Lakes under patterns, Average true range, and many many more useful tools will only help you recognize the prevailing market direction. But all these tools will Never give you the opportunity to predict it.

Nobody can predict where the market will go. Not in ten minutes, ten days or ten years. However, with a Profitable trading Plan, you can make money in a highly unpredictable environment.