DaveTrader wrote: Mon Dec 26, 2022 11:48 am
Thanks for the insights.
I was never really tempted to take the sells on the way up. I did get gun shy on a couple of the re-entry buys though and missed out on some of that, I was more anticipating the consolidation shoe to drop. I look forward to the next similar scenario and having better recognition.
A problem I have at times and I am sure many others do is that you form a bias in your mind. Yet the chart says otherwise, when all your indicators are telling you buy then that is the right thing to do. When you go back over the chart after a trading session and see what could have been if only I took that entry. Then look at what you would have lost if it went wrong, usually the risk to reward is very much in your favour.
For short period I was following Tom Hoogaurds trades on Telegram, he was sure the market was going south in a big way. I was following my own signals but seeing what he had to say, once after the open of the DAX he had taken 2 losing shorts and I had taken one long and made over 60 PIP$. It was his bias that was causing him to only see sells. Quite often the local media here in the morning which is just after NY close will say the market is going to go up or down. I used to take that on board but after a while, I realised most times the market did the opposite of what they said. When I first started trading back in the 90's the "guru" I was paying to learn from showed a copy of the front page of one of our major newspapers the day before the 87 crash. The headline was the Stock Market is going up!
Now I try to avoid any news and if I do hear something I think it is most likely the opposite of what will happen and look at the charts.