So throughout the past few months, I've been leaning bearish on the US markets. I try not to get overly emotional since I learned from my past/scars that you have to be clear-headed instead of believing that price has to go your way. Anyways during the past few months, I've been pretty decent in finding areas to cover my shorts. I see volume capitulation on the short side, Volatility overdone/showing signs of reversal, price making higher lows, as well as all indices catching bids on support. I am good enough to spot the low like today's price action on ES around 2052. However I did not expect this big of a move intraday today on the upside, and the only trade I made money was a .25 scalp on the long side since my bias was still bearish near LOD. So I guess what I am trying to say is, I can spot areas of support, in which it may be a good area to cover if you are short. Same as areas of resistance, in which it may be decent enough to short. However when my original position is let's say short like today's action and I cover when market starts showing signs, I simply get out, and watch. IF I reversed my position today instead of just covering near LOD, I would have traded it much much better. How do you let go of your bias? This is what I am trying to master the most.
Don't have a bias, be flexible. Your trading plan should be complete and include trend trades, counter trade and range type signals; make sure they are all positive expectancy setups. Last but not least, even the best systems have losses, don't concentrate on being right, but on trading the plan correctly. Never marry a position.
what that has to do with trading? maria bartoromo may say something like that why? because she has no need to trade, she makes money talking... markets? who trades market? everybody trades specific instrument(s)... leaning? what a hell is that? trader either got a signal from his method to trade specific instrument or not... see where i am going? i am sorry if i sound harsh but the difference between an amateur and the professional: one is thinking , another one is knowing (not where market will go , but what he will do) i can continue if u want me to
End of thread. lol. Seriously. I dont think any more needs be said really. Trade realities not opinions.
Depends what your bias is based on ? Anything factual or just a gut feeling ? No matter all the complaints and prophets of doom the US economy is improving and finally so is europe. GDP and employment improving so my bias if your talking about stock markets rather than gold or pigs or rabbits etc is long or at least not taking major short positions. If the facts change I will change my bias.
Sometimes its the instruments traded...for instance, some people like trading unhedged positions...quick, in and out, highly liquid stocks or indicies...others would rather trade spreads or trade options or something else that helps them psychologically deal with all of the uncertainty... You can go thru many of the past threads on here and find that it's most important to find a style or an instrument that you can trade with some level of confidence...the big mistake is that too many people try to jump on board the most popular instruments and find themselves developing alot of aversions to taking trades (mostly due to fear and bias)...
I hope you realize that the data is almost always conflicting...You can find one report suggesting improvement and someone else can find one to negate it...Besides that starts to venture over into some grandiose "macro" thinking...and these markets are fixated on day to day developments (which also provide alot of point/counter-point reactions to macro data)..
Yeah sure but it depends on your timeframe. Im not daytrading. There is scatter in the data but the overall trend in charts like this seems to be improving so Im not going to take any major short swing trading positions -> http://www.advisorperspectives.com/dshort/updates/Big-Four-Economic-Indicators-PI.php If daytrading Id guess this becomes irrelevant so you should not have a bias anyway.
How to reverse your bias in market direction? Not reverse - eliminate Not quite - AD shared what..., OP is asking how Y'all help him / her out - and share some idea as to how RN