We have a clear bias of a psychological nature that basically consists of going against everything that experiences a movement in favor.
When a trend is established, it always tends to last longer than we expect:
_ It’s going to turn around now!, it’s going to turn around now! but it never does.
All that time you’re waiting for a market to turn is precious time you’re losing to go in favor. You’re missing multiple opportunities by waiting for just one, the turn.
And what’s worse, you’re probably even entering the market against it, with its consequent “bites” to your account.
When there is an established trend, the best thing you can do is wait for a retracement of it to enter in its favor.
Therefore:
- Every time there is a trend, for example bullish, if you go against it at every resistance you find, you are trading counter-trend.
- Likewise, if you go against it at every support, in a bearish trend, you are trading counter-trend.
Many times prices stop at supports and resistances, and you may get a “pinch” but by doing so you are not trading in the correct way but as the market wants you to do.
When a trend is established, it always tends to last longer than we expect:
_ It’s going to turn around now!, it’s going to turn around now! but it never does.
All that time you’re waiting for a market to turn is precious time you’re losing to go in favor. You’re missing multiple opportunities by waiting for just one, the turn.
And what’s worse, you’re probably even entering the market against it, with its consequent “bites” to your account.
When there is an established trend, the best thing you can do is wait for a retracement of it to enter in its favor.
Therefore:
- Every time there is a trend, for example bullish, if you go against it at every resistance you find, you are trading counter-trend.
- Likewise, if you go against it at every support, in a bearish trend, you are trading counter-trend.
Many times prices stop at supports and resistances, and you may get a “pinch” but by doing so you are not trading in the correct way but as the market wants you to do.
