1. To effectively read the market, it is important to practice and fine-tune your skills by writing out the overall story you feel is being told to you each day/week and comparing it to what actually happens.
2. It is important not to let any of your positions bias your analysis and to keep this analysis separate from your trading until you know you are becoming accurate.
3. The charts show what institutions are doing, and the story you create comes from those charts. Remember that there are buyers and sellers, institutions and retail investors, and retail investors do not move markets because they do not act in unison.
The article titled "How To Read The Market - An Exercise" on the RealDayTrading subreddit provides some insights into how to effectively read the market. The author suggests that one should write out the overall story they feel is being told by the market each day/week and compare it to what actually happens, noting how often they are right or wrong. They also caution against letting any positions bias one's analysis and suggest keeping this analysis separate from trading until accuracy is achieved.
While the article provides some useful tips for reading the market, it is important to note that it may be biased towards a bullish perspective. The author seems to have a generally positive outlook on the market, suggesting that Bulls will likely win out and cautioning against getting out of equities entirely. However, there are potential risks and downsides to consider, such as inflation concerns and overvaluation of equities.
Additionally, the article does not explore counterarguments or present both sides equally. It focuses primarily on bullish perspectives and does not delve into potential bearish scenarios or risks. This could lead readers to make decisions based on incomplete information.
Overall, while the article provides some helpful tips for reading the market, readers should approach it with a critical eye and consider potential biases or missing points of consideration before making any investment decisions.