Directional bias

Discussion in 'Psychology' started by sgsaxton, May 8, 2006.

  1. Looking back, I've found that I much prefer shorting the market as opposed to going long and my success rate relects it. For me, shorting is just easier and more comfortable. When it comes to placing long positions, I feel awkward and clumsy and I hesitate because of the doubts I have. Anyone else find this? Does anyone know of a cure for this? Is it even a bad thing?:confused:
  2. I personally try to have 50/50 long vs short.

    But, nothing wrong with doing something as long as it works.

    If the markets continue to go up and up and you feel your shorting isn't working, then go long.

    Nothing wrong with it though.... just make sure it makes you $$$ :)
  3. If you feel clumsy or inept at going long, then turn your charts upside down and you wil find long entries.
  4. jessop


    Yeah - I have a 60-40% bias in favouring shorts - my reading is that shorts generally go down harder & quicker.

    Therefore I find them easier to see/hold than longs and so I'm more attracted to that bias.

    I guess this is down to my relative inexperience. The good news is that it was 80-20 last summer.


  5. Did you try also by entering long positions only when you think it's going to reverse? I mean the same kind of feeling like when you short.
  6. It also requires looking at the charts in a mirror to get the full effect.
  7. What it boils down to is that my mind seems to be much better at spotting weakness as opposed to strength. The problem is that because I'm tuned into looking for shorts when a market reverses to the long side and starts to rally, I find that I start looking for signs that it will reverse. As a result is twofold in that I miss profitable long trades because I'm looking for weakness and thus, I land up trying to pick tops and as we all know that's a good way to lose money.
  8. romik