The reason for today's result from the overnight held, swing paper-trade? See this morning's post. Nothing more to be said.
Friday, September 24, 2010
Saw it, liked it, reprinted it here...
From www.coiledmarkets.com , August 31 2010 post:
"Ever have that thought flash thru your mind inside of a plodding, deliberate trend session? Up or down, doesn’t matter. Have you ever let the thought of price is “too high” or “too low” for taking a new position there hold you back, only to see price continue much deeper in that same direction after giving you all kinds of time to open a new trade?
A funny thing happens when we watch that process unfold the the hard right edge of our charts. Once price shoots away from where we passed on entering, a new compulsion overwhelms our senses. The market is now irrational and extreme. The sensible thing to do here is fade the move… short each new upthrust high, buy each plunge-down low. Sooner or later the “herd” will figure out they are wrong and you are right. These prices are insane here. Then the market will turn back in your favor, reward you for being so sensible with your “discount” purchases and reward you again for not taking that other stupid trade which worked a little bit but must surely stop working nearby, soon.
For those who have experienced that emotional pattern, how did the story turn out? Were you victorious more often than not, or run over by the StraightTrend Express more often than not?
I tell ya, it’s a deep-seated emotional flaw that prevents traders from mindlessly buying and selling into extended trend moves when continuation signals confirm. One of the hardest personal flaws to overcome in this profession, by far.
Also one of the deep core reasons why reversal-trade or “fade-trade” tactics appeal to newbie traders before they get chewed to shreds by the market in rapid fashion. It feels really good to time a high or low entry when trading. It feels five times good to make a public call somewhere and be right, then bask in the accolades of fellow newbies who don’t know one whit better about reality themselves.
Then begins the constant (but relatively brief) quest to be right again and again about picking tops and bottoms, highs and lows in a market."
I'm trying to figure out (still) why the red highlighted section is a perfect description of me. Until I figure that out, I won't trade real money and can't achieve my goal of trading the markets for a living. We all have our "anchor," that weight that holds us back while trying to learn this art... the red highlighted area is mine. Are you self-aware enough to know your anchor? I think it's the first step to fixing it... we'll see!
"Ever have that thought flash thru your mind inside of a plodding, deliberate trend session? Up or down, doesn’t matter. Have you ever let the thought of price is “too high” or “too low” for taking a new position there hold you back, only to see price continue much deeper in that same direction after giving you all kinds of time to open a new trade?
A funny thing happens when we watch that process unfold the the hard right edge of our charts. Once price shoots away from where we passed on entering, a new compulsion overwhelms our senses. The market is now irrational and extreme. The sensible thing to do here is fade the move… short each new upthrust high, buy each plunge-down low. Sooner or later the “herd” will figure out they are wrong and you are right. These prices are insane here. Then the market will turn back in your favor, reward you for being so sensible with your “discount” purchases and reward you again for not taking that other stupid trade which worked a little bit but must surely stop working nearby, soon.
For those who have experienced that emotional pattern, how did the story turn out? Were you victorious more often than not, or run over by the StraightTrend Express more often than not?
I tell ya, it’s a deep-seated emotional flaw that prevents traders from mindlessly buying and selling into extended trend moves when continuation signals confirm. One of the hardest personal flaws to overcome in this profession, by far.
Also one of the deep core reasons why reversal-trade or “fade-trade” tactics appeal to newbie traders before they get chewed to shreds by the market in rapid fashion. It feels really good to time a high or low entry when trading. It feels five times good to make a public call somewhere and be right, then bask in the accolades of fellow newbies who don’t know one whit better about reality themselves.
Then begins the constant (but relatively brief) quest to be right again and again about picking tops and bottoms, highs and lows in a market."
I'm trying to figure out (still) why the red highlighted section is a perfect description of me. Until I figure that out, I won't trade real money and can't achieve my goal of trading the markets for a living. We all have our "anchor," that weight that holds us back while trying to learn this art... the red highlighted area is mine. Are you self-aware enough to know your anchor? I think it's the first step to fixing it... we'll see!
Subscribe to:
Posts (Atom)