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Bolded a few bits and pieces for reference Pav ..... Your points pretty much sum up my own findings
I'm glad you posted this. Very glad.
I am very much leaning towards this thinking now also.
I have found that analyzing market direction is my strongest point.
My biggest weakness that creeps in is thinking that I have to nail almost every move. Because of this flawed thinking and lack of perspective, I have incorporated the hedge.
It distorts the initial (correct) analysis.
I start seeing things that aren't in the chart because I'm in a "hedge" trade.
It causes confusion.
Not only does it cost me precious points, but it also often causes me to reverse my thinking and exit my good trades in the opposite direction!
Another cause of this confusion is watching the screen too closely. For me, I trade best when I do my analysis, back my position, take my trade, move stop to BE and then WALK AWAY and set alerts or profit take orders.
I'm amazed at how often watching the screen too closely costs me. I start second-guessing and that's when I look for a hedge trade that isn't there.
Last night, I took a trade in the first 10 minutes (I think 3 minutes actually), and I went and had a nap, set my alerts and checked the trade about an hour later to see that it was well in profit. Had I remained at the screen, I likely may have thought the first "stalling" of the move was signalling that price was about to come off and then put on a stupid hedge.
I reached the end of Al Brooks' 3rd book (Reversals) recently.
It struck me in his final "bring it all together" section that he goes out of his way to emphasise beginners have to ONLY trade with the broader trend until (if) profitable.
Anyway, Brooks mentioned the case of a friend how had been trading for many years with mixed success, but when he took out all his countertrend scalps, only then was he profitable. In other words, the trades you DON'T take and the time your DON'T spend 2nd-guess can definitely be important.
When you've only been at it <12 months, I like to think any screen time spent with trading real (minimal) funds is educational though.
Its pretty quiet in these halls lately. I'm missing the chat!
I have been playing around with the SPI the last few weeks and have a few general questions.
Why are opens more all over the shop generally than the rest of the day?
And once the market closes who is trading? Why are they trading after close? If you can trade why are more people not?
Thanks for that.
Any particular reason these participants need to trade the open and not say 30 mins or an hour before? If they for example want to sell and they can why wait for a specific time?
Not enough volume before the open until the SPI traders get to work and start trading?
- My winners mainly go straight in my favor with the odd split second tick back.
Thankyou Barney. Tech -Appreciate the different perspective. I feel as though what I'm doing is micro so it has to be in and out, also I see the momentum stall/ size thicken so I quickly exit . There have been a few instances where it's taken off massively in my direction but also it has done the same for the opposite.
Thankyou Barney. Tech -Appreciate the different perspective. I feel as though what I'm doing is micro so it has to be in and out, also I see the momentum stall/ size thicken so I quickly exit . There have been a few instances where it's taken off massively in my direction but also it has done the same for the opposite.
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