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That's a very vague question but let me try to answer... I guess when one pertains to "understanding the market" it means getting a feel for it....Getting an idea on how economic news affects the current market. The reason behind this is that each economic release affects the market differently depending on the time. For instance, unemployment information is watched at the moment because of the global recession. Given say, at a moment of growth, this type of data might just be shrugged off. In addition to this, you have a feel on what kind of technical analysis works and what doesn't.. Do break outs work usually? Or do the markets range? Understanding the market, for me, is being able to adapt to different market conditions over time.
