Market Tao before Market Fu

Tao can not be totally defined, however, "the way" or "the path" is frequently used. This suits the purposes of helping us wrap our arms around an important concept: Market Tao. Things that are alive all have their unique Tao. Since market price is nothing but reaction to a dizzying combination of man-made actions, it seems to have a Tao of its own. To say it another way, Market Tao is an extension of Human Tao.

Kung Fu has been defined as "the pursuit of physical and mental perfection." Hmm... Perfection is something that would be good to strive towards. I'll do that. The physical aspect has already been nearly mastered since I am fully capable of clicking the "Buy" and "Sell" buttons nearly any time the market is open. The mental thing is my problem. Here's the proof: both stocks I invested in this AM are currently below my entry price. Methinks that to gain perfection, I would have to understand the way that stocks are. Thus my quest for Market Tao begins.

Let us begin the journey:
1) Stock price has the potential to go up and down. That's called risk and reward.
2) When there are more exuberant sellers than buyers, the price can fall. The opposite is also true.
3) Stock price does go up and down. That's why people trade.
4) People place trades for more reasons than I can know or understand. The big picture can be read like a book by those who have learned to read charts.
5) Stocks may be traded any time the market is open and sometimes when it's not.
6) Some stocks are traded more than others. This is indicated in stock volume.
7) Stock volume changes a lot. Sometimes, volume can be half or double (or more) the average.
8) Increasing stock volume indicates accumulation or distribution
Well... a good start eh?