One of the biggest mistakes I see retail traders make is obsessing over the “why” behind market moves.
Why did Tesla (TSLA) go up today? Why did MicroStrategy (MSTR) spike after earnings? Why did Boeing (BA) pull back?
The truth is, professionals don’t care about why a stock moved. Instead, they focus on a far more important question: how to capitalize on it.
Let’s be honest — the market doesn’t always give you clear answers. Sure, you might hear explanations about earnings, news events or macroeconomic trends, but those reasons won’t help you trade better. And most of it’s just speculation anyway, fodder for talking heads on TV.
Professionals know this, which is why they redirect their energy toward identifying how they can profit from a move.
For example, MSTR saw a massive spike after its earnings report in early 2024. Retail traders might scramble to figure out why it moved, guessing about earnings beats, Bitcoin correlations or other factors.
But here’s the reality: The why doesn’t matter. What matters is recognizing the movement and formulating a plan to trade it.
The right question isn’t “Why did it happen?” but rather “How do I take advantage of it?”
Asking “why” can also lead to unnecessary frustration. The market is rarely logical in the short term, and moves often defy conventional explanations. What happens when you spend time figuring out the cause, only to realize it doesn’t repeat itself?
You’ve wasted time looking backward when you should have been planning your next move.
Consider Tesla as another example.
Its recent price movement coincided with election speculation — the idea that Elon Musk could have more influence in government. But is that actionable for a retail trader?
No.
Professionals don’t position their trades based on speculative political influence years down the line. Instead, they look at Tesla’s breakout and ask, “How can I trade this breakout in the short term?”
The focus remains forward-looking and practical.
Here’s the bottom line: “Why” is backward-facing. It keeps you stuck in the past, chasing explanations that may never pay off.
“How” is forward-facing. It forces you to focus on strategy, execution and profit opportunities. Replacing “why” with “how” is one of the most important mindset shifts you can make as a trader.
Next time you see a stock moving, resist the urge to ask why.
Instead, ask yourself how you can capitalize on it. If the move fits your strategy and timing, act on it. If it doesn’t, move on. The market rewards traders who focus on execution — not endless speculation.
Kane Shieh
Kane Shieh Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
