This is a personal note to myself.
You know you do this - day dreaming about how high the chart is going to go when you're going long. You start wishing and hoping that the price will just keep rocketing up in your favor.
1 points, 2 points, 3 points in profit. Who knows where else it could go, maybe 30 points! You're now 10 points in favor. You move your stop to break even but you don't want to take partials, you will only exit for at least 30 points. However, slow but surely the market starts to shift, 9 points, 8 points, 7 points, your unrealized gains are starting to drift lower. But you must hold for 30. 6 points, 5 points. Your elation and and excitement has turned into worry, confusion, and disarray. Why is it not going to the moon? Suddenly a quick spike lower takes you out for breakeven.
You may have been able to see the signs of the market turning - lower highs, failed follow through momentum, weak bounces. But you were too blinded by what you wish to see in the chart versus what you're actually seeing.
The mind is a powerful thing, it can make you imagine whatever it is you want to imagine. But it can't force the shifting current of the markets as you see fit.
Bring yourself back from your daydreams. You must analyze price, not zone out and react to price.
The game isn't to forecast price and wish it goes in your favor. The aim is to forecast price and look for signs of it turning - even if it hasn't reached your target.
You know you do this - day dreaming about how high the chart is going to go when you're going long. You start wishing and hoping that the price will just keep rocketing up in your favor.
1 points, 2 points, 3 points in profit. Who knows where else it could go, maybe 30 points! You're now 10 points in favor. You move your stop to break even but you don't want to take partials, you will only exit for at least 30 points. However, slow but surely the market starts to shift, 9 points, 8 points, 7 points, your unrealized gains are starting to drift lower. But you must hold for 30. 6 points, 5 points. Your elation and and excitement has turned into worry, confusion, and disarray. Why is it not going to the moon? Suddenly a quick spike lower takes you out for breakeven.
You may have been able to see the signs of the market turning - lower highs, failed follow through momentum, weak bounces. But you were too blinded by what you wish to see in the chart versus what you're actually seeing.
The mind is a powerful thing, it can make you imagine whatever it is you want to imagine. But it can't force the shifting current of the markets as you see fit.
Bring yourself back from your daydreams. You must analyze price, not zone out and react to price.
The game isn't to forecast price and wish it goes in your favor. The aim is to forecast price and look for signs of it turning - even if it hasn't reached your target.