Trend following is harder than it looks. In a strong uptrend, you are likely to experience a fear of heights. Don’t rationalize your emotions with irrelevant reasoning. Have the courage of Forrest Gump and follow your Trading Plan.
When we make a mistake in trading it can be difficult to admit we are wrong. One game traders play with ourselves is to fade the move we missed. This usually means entering a countertrend trade and in a strong trend the results can be disasterous. The Zen of Trading...
When markets get volatile they streak up or down. These abnormal moves can be difficult to trade with one’s normal method and the temptation is to chase so one does not miss out. Chasing however will undermine your discipline. Here is a simple trick to avoid...
During a trending phase, markets exhibit parabolic counter-trend corrections. Parabolic moves can feel disturbing, even scary, and may shake you out of established trends. Realize, however, that they are like Halloween goblins… opportunities in disguise.
As traders we need to be right, but in order to fully capitalize on our ‘edge’ we must to be able to tolerate risk and uncertainty. Our profitability is directly proportional to this ability. Like building muscles in the gym, it can gradually be increased...
Recent Comments