I think misreading the stock charts and struggling to pick the exact tops and bottoms constitute the major challanges that traders face.If you realise thinks are not going your way, you can research more and practise how to accurately read stock charts, and even backtest your strategy. It's not amust that you achieve accurate tops and bottoms, just follow the trend
I realised that misreading stock charts was my greatest challenge, and so I worked on it to the best of my abilities. I suggest that any trader experiencing so much loss should relax first and take a break from trading, so as to analyse the market and see what changes need to be done to his or her trading plan
Successful trading is so full of dynamics, and you really need to be a smart trader if you are ever going to get it right. Saving is a personal choice, and its very important for a trader as well. That's because forex and proper money management can not be separeted, just like any other money business
I think it is wrong to start your pursue by attempting to catch the top and bottom. It is extremely hard. If you are able to identify a pattern, at least let it pass the back testing first- can it beat buy and hold? can it win consistently and survive bear cycle? Can it achieve some kind of performance standard you set for yourself? Starting from there, you might apply it for an extended period of time to observe its performance forward. You might set some kind of trigger to suspend the commitment but be careful about that.
In real logical world 2+2 = 4, but in trading there is illogical thought processes that for many plays with your vision, which often lies to you, heart beats faster when price is going wrong way which in turn causes emotional distress for many. One's needs to be right should come after trading exactly as your Trading Plan. Your trading Plan lost or made money and not you unless you violated that plan. Most retail don't use volume, they have no clue how to use it, what should or should not happen, what should happen breaking S/R, this is one of many areas to concentrate one's study, extremes on charts, guess what, most have repeating formations, doesn't mean you have to trade against the trend but to stop taking trend trades. What is difference between breaking pivots and closing beyond them, what should volume be doing? What does slope of price mean? Breakout trades are "feel good" trades and you pay for it dearly in larger protective stops and smaller returns. No such thing as overtrading when account is growing, when account is losing is when you reduce trading and have time turn offs for an hour or next day, week.
%% I feel good about more of my ETFs investments than trades.And as far as ''gut feel''= after all these years; my guts try to get me out waaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaay to early.On a short trade, may have to use a tight stop, or a time stop. Any bullmarket uptrend has so many upside brake-outs, smaller returns-they can add UP+ dividends to larger returns.However SEPT sells off so much in stock markets, i may not use a large stop, in SEPT.
%% Both, ironchef; more of trend study/trend follower than trying to put myself in a named box.Thanks for the question.