This blog is a journal of charts on ASX stocks in various point in time. You might find charts on Major forex pairs,Nasdaq and SGX stocks as well.It reflects the author personal view. Its neither advisory or invitation to trade. All done in the interest and passion for the market, trading, technical analysis and elliot wave. And to exchange view, opinions with traders worldwide. .
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Friday, September 17, 2010
Trouble starts when you get ahead of yourself. The popular trader's adage, trade what you see not what you think. What that means is, dont put your chips on what you expect what the market will do next but instead trade whatever the charts is presenting you at the moment. For example if you look at the charts now you might feel that its getting toppish and thus prepare yours setup as so, and most newsletters and gurus are giving the warning signals as well. However, prices/charts have not signal a reversal as yet. So if you were to prepare a setup now it would mean you are setting up to fail. For you ARE NOT seeing a reversal. You are anticipating a reversal which may make you cautious in going long which is fine as long as you wait for rversal signal and confirmation for going short. At the same time market is still going up and some individual shares are logging in some decent profits and stocks that you have closed have also gone up after the "mini" correction or consolidation which you had hopped out. So you seem to be in a limbo now. To join in the bandwagon so to speak but it goes against your thinking now which says , stocks should turn and reverse. So, although you see an opportunity to go longyou feel an underlying jitter as well that tomorrom might be the D-Day and you get caught. So all in all use reason and calculated risk.
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