How to avoid Knowledge Bias in Day Trading ?

"Chasing the market" doesn't mean what you seem to imply. It's basically a late entry, with huge risk of being way too late.. Nothing to do with commissions.

PA above shows a dull horizontal market for some time, then volatility breakouts. Could go either way, so need to be taken into account.

 

1. Like Volpri, I didn't get a bearish bias at all looking at the OP's first chart.

2. It's not clear to me why a "knowledge" bias is a relevant issue.

3. If you have an opinion about the future direction of the market, and the market proves you wrong, if anything that would check any preconceived bias I had held. The market is always right.

4. That's why a highly mechanical trading system combined with a highly disciplined practitioner or an automated trading is such a good idea for many traders. You honor your stop loss and move on to the next trade entry.

5. You will find no comfort in stroking your ego with the markets. There are no "masters" of the market - only survivors.

 

Thanks for your help .

If you authorize me , I have additional question for you

1-By learn Pattern,do you mean learning Chart and Candlestick Pattern ?
2-How to be able to design my own pattern ?

I'm a noob in those field so sorry if this question sound stupid
Thanks in advance

 

Thanks for this constructive analyse , it helps me alot to have this contrarian view .

 

Thanks for your reply .
I will try to integrate bar chart and see the differences, it would certainly be very hard cause I had never trade with it .
By granularity of market do you mean , assessing volatility, volume ? or is it another concept ?

Thanks in advance

 

ok

 

That's how you get caught in a whipsaw and take with high probablity each time a loss.

If I have that kind of problem there are only 2 options:

• find a better way to filter out the really good trades.
  
• if I cannot I don't trade any of them.

If there is no way to predict what's going to happen next, you are just gambling, not trading.

 

ok

 

Yes, you have the general direction. To further explore market granularity you would have to deconstruct how a single bar builds in relation to the above.

For price, volume and volatility form a relationship. They influence each other in observable and specific ways when defined will change how you ‘see’ the market.

Reading about concepts are more like introductions. When one engages in performing Due Diligence by doing drills, that’s what builds perception, facility and capacity.

 

This guy is awesome on patterns.

http://thepatternsite.com/index.html

and finding patterns takes lifetime of testing, you just start testing what you might find that has reoccurring directions.