Traders make money by betting on short-term price swings. The idea is to buy when our reading of market tells us prices are rising and sell when the uptrend runs out of steam. Alternatively, we can bet on a decline and sell short when our analysis points to a downtrend, covering when the downtrend starts bottoming out, The concept is simple, but implementing it is difficult.
It is hard to become a good analyst, but harder to become a good trader. Beginners often assume they can make money because they are smart, computer-literate and have a record of success in business. You can get a fast computer and even buy a backtested system from a vendor, but putting money on it is like trying to sit on a three-legged stool with two legs missing, the two other factors are psychology and money management.
