Yesterday was a very valuable lesson I learnt. Though I am not a very aggressive day trader but still like to take a shot at it if I find a setup very convincing. Yesterday was one such day when I saw a beautiful set up to sell short right at top. Everything was falling in place and begging to take the trade. I just blew it up. There were number of lessons I learnt from the above experience. First I was so biased about being positive that the first initial impulse bar down, I ignored as a panic reaction. Second since the trend was screaming down I tried to take a position against it. I tried to go long. A CARDINAL SIN! Anyway I didn’t burn my fingers but singed YES! Third and the most important Lesson I learnt was what we all often repeat yet forget it when it matters the most “TRADE WHAT YOU SEE AND NOT WHAT YOU THINK”.
I am posting this chart today for all the friends who must have experienced the same situation some times in their trading career. I just felt awful yesterday and today, and needed to vent out. Anyway my old friend Shiree’s advice was comforting he told me not to berate myself but rather congratulate myself that I was the chosen one. He said this was one free lesson the markets gave you (see I didn’t loose money!) to remember and learn from it.
6 comments:
Hey! Dude! things happen take lesson. It was interesting read. I too have learned that lesson earlier but with delivery stocks. Now we are in bear market, No point in going Long for coming months!
Shorts are high probability trades!
I am a follower of Elliott wave & Technical analysis and i have come to realise one very important factor that helps in identifying a good trade is the one that strikes you easily & immediately. It is so easy that our human mind cannot accept something so simple & easy. The ego has step in to assert its place and mess up our trade.
I fully understand your Friday experience. I have been reading your blog regularly and I find it , above all, simple and to the point.
Keep this going..
Ilango
man4urheart hi
Yeah dude no point in crying over spilled milk. A lesson learnt and kept in memory.Anyway regarding your query no it wont make sense to subscribe to investbulls if u want only hourly charts. There are many places wher u can see then free i think in icharts also u can see eod intra charts and also in invetsbulls. Secondly susbscribe to a good data provider they will provide you with hourly data also at the eod.
Regards
just nifty hi,
Thanks for appreciating the blog.I am just tryin2learn things here and keeping them simple.Like I said we are easily biased and as u said the EGO then prevents us from accepting we are wrong. Infact a friend Deepak Singh aptly commented we need eyeQ and not IQ in trading!!!
Cheers!
Hello Manoj,
I read your blog quite often and salute the way you are open about your day. I have also started writing a blog and would like you to visit and leave your valuable comments.
http://indexviews.blogspot.com
If you don't mind, I want to put a link to your page on my blog.
Happy trading...
Harish
Harry Hi,
Hey no need to get into salutations etc... I am just like you..tryin2trade.And hey thanks for the appreciation you have shown for my effort. Yes will visit your blog and best of luck from my side on your endeavor. Cheers!
Regards
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