You Need to Control Greed to Success in Trading.
Technical analysis are important, but they can be ignored until you have good mindset towards the market.
In my currently losing trading journey, what hinders me the most is not price forecast nor time prediction.
I am able to forecast the trend (I usually get the big picture right), find a support/ resistance zone easily. Timing the market is much more difficult, at my level I can succeed getting the market turn sometimes only. (I know there are Gann traders who can time to the minute!)
I am still losing money.
After busting a few accounts, I know that it is the mindset. Its how you control the beast, Greed.
I tend to catch the peak and the bottom
Trade the right hand side of the chart.
I attended courses, I read books. Many of them recommend trading the right hand side of the chart. It means we have to wait until a technical confirmation has occurred in the market.
It can be:
- a breakout of trendline, or
- a signal on technical indicators
I know that trading the right-hand-side is a working, safe method for trading. If you have a bullish view, you will be buying when there is a confirmation to the up side. You will get a good stop-loss position with relatively good risk-to-reward with this method. (Read more: 1-2-3 rule)
I traded at the left hand side in my old days
However, the old me tend to catch the peak and bottom. This was what I thought in the old days:
Why buy when the bottom is clearly formed? I missed that 150pip already!
Results? Disasters.
With this method, I average down easily.
Lessons I have learnt and takeaways for you:
1. Catching peak/bottom costs you a lot
- stop loss quickly, trigger emotion
- average down
- over-trade
- over-leverage
2. There are still plenty of profit after a trend confirmation.