If you cannot remove your worst enemy in trading, directional bias, you cannot trade price properly. Should make no difference if Dow is at 15000 20000 or 1000, if price says go long, you go long, if it says short, then short. Your economic opinions do not matter one bit either, because as you have heard many times, the market can remain irrational for extended periods of time, so why try to conceptually analyze it, it's dangerous and will end hurting you. I've seen downtrends develop from good news, I've seen price collapse when Fed had been pumping, there's really no timely way to analyze this, unless, you stick to price and volume. I believe such bias is the common denominator among those struggling in this business. Sounds like a big cliche but if you traded long enough you know how key all this is.
So very true, the times when i have had a bad run or losing trades is when i have a bias. I tend to develop this at times by hanging around forums and actually paying attention to where someone says price is heading, the worst possible thing one can do. So for that, i try to not pay attention too much to what others say when it comes to price and just trade what is in front of me. Its taken a long time for me to realize this, it definitely makes a big difference. So for all you beginners, trades whats in front of you, kill the noise. Try your hardest to not have a bias one way or the other.
No one knows anything, and since anything can happen at any given time, expected or unexpected, the one true King is price. Hot rumors, message boards, gurus, magazines, tv, too high, too low, too cool, too bleh, all of them are evil and should be eliminated from trading.
RTH is a good enough space for analysis.What happens in trading happens within RTH and its parts.Anything outside RTH,is a fantasy land.
You seriously believe this?? Better phone the rest of the World and clue them in btw - now you really want fantasy - trade the first 5 - 10 min after the open - not always fantasy mind you ..., but typically RN
Extended hours react to news after the close and before the open, and/or to regular trading hours of other markets like Asia or Europe. It is no fantasy land.