but guys, that's what's so cool about Technical Analysis. The
fact that you could count 5 waves off off Friday's lows, strongly
suggested that move was at least a wave A up, and to expect a deep
wave B pullback, but that pullback should form a higher low - the
move up again in wave C. The key was being able to count 5 waves up
- if it was only 3 waves up off the lows, that would have been
bearish and suggested another low right now
again all this stuff is fractal: To me I could see this move up
being a wave C that takes out the high from earlier this week but
still overall makes a lower high because of the daily symmetry
break - so this wave C might complete that lower high wave B
on the daily maybe around the 50 day MA
anyway besides systems trades, and trade ideas etc, we also
excel at education here
Posted by icecoldjones on 25th of Apr 2024 at 04:25 pm
I understand your technicals and trust you guys, I just wish I
had your emotional bandwidth because my emotions run HARD and I
feel like now we're just going to skyrocket to new ATHs. My
personal issues are why I've never been a successful trader.
Posted by DigiNomad on 25th of Apr 2024 at 04:38 pm
I wouldn't beat yourself up. Today's action was perfectly
designed to trap as many traders as possible, as spectacularly as
possible. An AI couldn't have designed a better day for traps if it
trained on all of history's market data and all the books on trader
psychology ever published.
The one thing I have noticed is that they are taking
advantage of the instinct for most people to think hot inflation
and higher rates = lower markets. That's not the case but it's a
widely held belief so those people have emotional reactions on hot
print days and hit the sell button which the smart money takes
advantage of knowing that inflation inflates.
Emotion is what makes trading difficult for most people.
Technical Analysis is all about analyzing the collective mass
emotion/psychology that causes patterns to form on the charts.
Unfortunately we as humans also fall prey to our own emotion. And
again everyone is different, some people are MUCH better at dealing
with it, while others are not. It takes time, and having a
systematic approach where you have a rules that you are following
helps - because the emotions are most difficult when you don't have
rules or a decision that is pre set.
I'm sure Spock from Star Trek would be a great trader since
Vulcans suppress their emotions LOL
or....maybe one of Elon Musks Optimum robots LOL
there's a book called 'The Trading Athlete' it makes a strong case with a bunch of examples of why
former professional sports players have made great traders - why?
Because they had to learn to control their emotions in stressful
situations in games and in the public, and that directly translates
to trading
yep! but guys, that's what's so
From SPX down 1.6% today to AH being up almost ...
Posted by matt on 25th of Apr 2024 at 04:19 pm
yep!
but guys, that's what's so cool about Technical Analysis. The fact that you could count 5 waves off off Friday's lows, strongly suggested that move was at least a wave A up, and to expect a deep wave B pullback, but that pullback should form a higher low - the move up again in wave C. The key was being able to count 5 waves up - if it was only 3 waves up off the lows, that would have been bearish and suggested another low right now
again all this stuff is fractal: To me I could see this move up being a wave C that takes out the high from earlier this week but still overall makes a lower high because of the daily symmetry break - so this wave C might complete that lower high wave B on the daily maybe around the 50 day MA
anyway besides systems trades, and trade ideas etc, we also excel at education here
I understand your technicals and
Posted by icecoldjones on 25th of Apr 2024 at 04:25 pm
I understand your technicals and trust you guys, I just wish I had your emotional bandwidth because my emotions run HARD and I feel like now we're just going to skyrocket to new ATHs. My personal issues are why I've never been a successful trader.
I wouldn't beat yourself up.
Posted by DigiNomad on 25th of Apr 2024 at 04:38 pm
I wouldn't beat yourself up. Today's action was perfectly designed to trap as many traders as possible, as spectacularly as possible. An AI couldn't have designed a better day for traps if it trained on all of history's market data and all the books on trader psychology ever published.
The one thing I have noticed is that they are taking advantage of the instinct for most people to think hot inflation and higher rates = lower markets. That's not the case but it's a widely held belief so those people have emotional reactions on hot print days and hit the sell button which the smart money takes advantage of knowing that inflation inflates.
This was crazy. Absolutely perfect design.
Emotion is what makes trading
Posted by matt on 25th of Apr 2024 at 04:31 pm
Emotion is what makes trading difficult for most people. Technical Analysis is all about analyzing the collective mass emotion/psychology that causes patterns to form on the charts. Unfortunately we as humans also fall prey to our own emotion. And again everyone is different, some people are MUCH better at dealing with it, while others are not. It takes time, and having a systematic approach where you have a rules that you are following helps - because the emotions are most difficult when you don't have rules or a decision that is pre set.
I'm sure Spock from Star Trek would be a great trader since Vulcans suppress their emotions LOL
or....maybe one of Elon Musks Optimum robots LOL
there's a book called 'The Trading Athlete ' it makes a strong case with a bunch of examples of why former professional sports players have made great traders - why? Because they had to learn to control their emotions in stressful situations in games and in the public, and that directly translates to trading
https://www.amazon.com/Trading-Athlete-Winning-Mental-Online/dp/0471418706
amazon.com
Amazon.com
Thanks for the feedback and
Posted by icecoldjones on 25th of Apr 2024 at 04:38 pm
Thanks for the feedback and book reco, Matt!