I don't disagree that markets are fractal, but so is cauliflower. Its still easier to snap off a small piece than a bigger one. But some people get in the markets because they like drama and excitement. If that's the case I say enjoy all the whipsaw.
Coming, they can't be denied. Going, they can't be detained.
The following 3 users say Thank You to MNSTrading for this post:
I started out day trading futures, and the way I see it is if you can do it and make money then by all means, but I couldnt and it sounds like your having trouble. Time to look at the market from a different perspective. Trying to pick tops and bottoms intraday is a sure fire way to broke. Why is price moving in that direction? Why does it seem like your shooting logical orders and then the market goes against you? Look into the theory of price action market structure as well as volume / price theory. For example, the russ 2k on may 10th heavily rejected price in the 2270 region, and being in a downtrend I figured the next rejection would be around the 60 - 75% retrace zone at 2240. On May 18, as price headed past 2225, thats where I waited for my chance, and went short 5 contracts at 2235 which I closed at open the next day ( I had a feeling the overnights would continue pressing the market down ), at 2170 for a good profit. If chart patterns work for you then study them, but i prefer the pivot points ( supply/demand chokes ), market profiles, and intermediate term trend analysis. You have to find your style, know why and when you want to enter the market with how much loss your willing to risk, and stick with what makes you money. Always be confident until the market proves you wrong, then either cut losses or take whatever profits off the table, before the market eats it. And more importantly, brush it off and begin to plan your next entrance whether its 2 hours or a week away, be patient. Good luck.
The following 2 users say Thank You to dbreen1 for this post:
I was driving yesterday and it hit me. Ever been in heavy trafic and you see the guy jumping lanes TRYING to get ahead?
Well TO that guy hes always in the slow lane because as soon as he gets in one lane the other starts moving faster.
What does he do? Jump lanes! What inevitably happens? He PUTS himself in the slow lane!
In the end I found I made it to the end of our journey together at the same time but I rode calmly the whole time and had the same result (luckily for him it does not cost to change lanes!)
So it's not deep or anything just a good way to look at the fact psychology we DO IT to ourselves.
One way to fight psychology is to make sure that you have very well defined rules for entry, exit, and risk / money management for your trading, and stick to it. If you can follow the rules you laid out and wind up with a loser, it's easier to move on knowing you did what you set out to do and your setup was good, but the market turned against you.
Traders buy when it's exploding up/sell when it's diving down = Fear Of Missing Out
Traders cut their winners short and let their loosers run.
That's my take on why traders are often on the wrong side of the market.
The following user says Thank You to Phoenixoboros for this post:
I know the feeling.
There was a time I thought my broker was messing with me.
I'd paper trade and do well, start trading with real money and lose.
I'd take 2 trades both would lose , I'd be cursing like drunken sailor, not take the 3rd trade , which would win everything back plus some.
