Be very careful with reversal trading its a tough cookie to play been trying for a while with mixed results. I think for me its expecting too much and not getting out as soon as I have profit.
Here's what usually happen to me as I have observed lately when the reversal happen the expectation begun to accelerate so instead of getting out early because its a temporary reversal I will hold thinking I can perhaps milk more. Because it does happen I have experienced that too but deep inside my psyche I also knew it does not happen most of the time the tendency is it will soon resume to its prevailing trend 80% most likely.
But as usual when I'm in the trade, the tendency to ignore the warning and feeling greedy will take over. The end result is me giving back the gains and counting my losses. This event does not happen to me always because I usually chide trading reversals. Its the challenge that attracts me but I'm not experience enough to handle such. Its a learning process that's all but it stinks in a way.
See you next time and good luck to you.
I think trading big time frames like 1 day or 4 hour, a trader need to wait longer to find out whether the trade is wrong or right. Don't you agree?
ReplyDeleteEven 1 hour frame, sometime I sit untill my butt is sore.
Regards,
ai shiang
I agree.
ReplyDeleteMajority of the time I trade the higher time frames (Daily and 4H) but I don't wait or sit infront of the screen. I always place advanced buy/sell orders. There is also a situation when I will enter asap it depends on the price action.