Updated: Jan 27
Have you ever looked at a chart and thought you knew exactly what the market was about to do? You confidently placed your trade and then walked away, back to the real world to go about your business. Later, you came back and something happened that was completely different than what you had envisioned in your mind?
Fractal patterns occur at every degree of trend. This means that there are smaller trends going on inside of the pattern you are observing on the chart at any given moment. Have you ever wondered why a market suddenly stopped moving as fast as it was and you find yourself becoming impatient? This is normal and for the same reason. Sometimes corrections within corrections expand and those corrections no matter how small in the degree must unfold as destined until their completion. This leaves the trader wondering what is happening and could even make them feel anxious to the point where it interferes with the prescribed trading plan.
Have you ever stopped to wonder that perhaps the big players in the market you are trying to trade have all gone on holiday due to the time of the year?
Have you ever wondered where a pattern begins and where it ends?
Sometimes you may have identified a pattern of some sort which gives you some kind of feeling that maybe you know what is going on. Is this because you really know the waves or because you have a mixture of confirmation bias and greed taking hold of your rational thinking? Have you ever acted upon this rationalization and bet on it? The next day you may have come to the conclusion that you weren't actually betting on the market and that perhaps were really betting on your own opinion of what you thought you were seeing?
Ask yourself what kind of wave theory was it that you were making these decisions upon?
Was the wave theory in use one that is extremely subjective?
Common sense is not common. I have heard countless stories about traders having found absolutely amazing strategies for trading the markets, but in a moment of madness, they decided to bet against that same strategy. The usual reason given is that they were trying to see whether or not it was really a good strategy and even go as far as calling it "testing". If you need to resort to that kind of "testing" whereby you are risking capital on a mere hunch then not only are you lying to yourself but you are letting the markets determine how you should feel.
Find a wave system that is NOT subjective and has a well-defined system for identifying the repeatable patterns that EVERY single market ALWAYS creates without question, at all degrees of trend so that you know EXACTLY when it's time to walk away or when it's time to expect a move and place a trade.
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