9/7... Price TA... Market "built" support @ 4435. Did you get a piece of it?

Discussion in 'Technical Analysis' started by Scataphagos, Sep 7, 2023.

  1. First, 2-4 losses are not all that many. After that, "it depends"...

    If I've made sloppy trades (which I rarely do these days), I "tighten up" on entries.

    If I've made good technical plays and still get losses, then I question whether I'm trading with the "correct bias". If the market is "psycho up*", then it's acting bullishly.... supports holding, resistance breaking, etc. If the market is "psycho down*", it's the opposite.

    *I avoid "bullish" and "bearish" because they connotate the big picture. The market acts bearishly during a bull market correction... it just doesn't go very far nor last long.

    I keep drawdowns under control by using properly tight stops... that only works well when you have good technical entries (close to support/resistance). The most consecutive losses I've had is 9. That was years ago. I didn't realize it at the time, but it was from trading the wrong bias.... that is, I was "buying the dip" when I should have been "selling the rip". (Which strategy is correct isn't obvious all of the time.)
     
    Last edited: Sep 8, 2023
    #11     Sep 8, 2023