Why most Of the times traders think price goes against them
Was discussing over some points over the BizAsis’s Chat platform there I got the clue to write it down.
So guys The point is Why most of the times we thinks that I just triggered my trade and Oh! damn its reversing and going against me,and we do keep on fear.We say Damn ! it would hit my stop loss now of course if you placed any haha. Sounds great! but One should enter with stop loss unless you are an Institution.So after you placing why price goes against you .Not always but most of the times new traders commit this mistake. Don’t Worry here I would explain about such a stuff according to my experiences.
Lets say example for any stock or currency or Indices most of the times the traders, who loss ratio is higher, dare to enter in silent market, I meant by market is waiting for reasons mentioned below.
- Market is waiting to begin next wave to each out next resistance levels.or market want to continue in Bullish wave e.g Uptrend
- Market is waiting to to begin next wave up-to next support.or market want to continue in bearish way e.g Downtrend
So I would like to Observe you both of the points mentioned just above.Now I will put light on the topic What we commit mistake mentioned in points below.
- Trader who thinks, he placed a trade and started fear what he did is he either
- Entered the trade on resistance or on Support which is likely but without Confirmation he entered and suppose to loose
- He had not seen for what other traders wanted to move price in direction.
- trader also neglected at this point about market fundamentals he just saw dimension about trades that Ohh yes! we got the price at support ,or we got the price over resistance etc.
- he thinks he is following the the market rules and market going against him.
So ,I mentioned few points in here so lets Discuss what one should look while entering his trade will again discuss few but logical points in here.
lets take an example about $EURUSD,recently EURUSD was trading and declining from its resistance ,Fundamentally it had strong sentiments few guys asked me that hey Dips I am shorting it and I know this time I will be able to grab this much percentages in it, I replied to him in that case ,Hey man please Let’s wait for EURUSD for its news release because as I am fundamental trader i trust and trades according to news releases .Sometimes price is discounted and some times we have to analyse it.
Now at the time of entry if the whole market was awaited why should I go and open a new position Its like a suicide and believe me its an Blind Suicide.
So What I want to tell here is always have patience while entering in the market if price has low momentum then one should avoid entering in the market,He should always think for that case for which market is awaited.We would discuss it too how to think like trade awaiters in other educational topic.till trade safe
if you have any queries please make sure to comment I will respond it