Monday, February 7, 2011

Hate Sideways Market


It's not because of less profit potential, or

hard to make profit. Oppositely, this market is easy for a scalper, and also amateur who liked cut profit short, let losses run, averaging down, and so on. I just don't like this kind of market because of the psychological trap. I salute to every traders out there who can swift instantly from fading to breakout mode.

This is the hardest part for me to change. Imagine if you glued at the screen for hours, making little profit multiple times from fading, scaling down, scalping, at slow movement....suddenly the market breakout. I bet it's very hard to change to breakout mode, in fact I kept fading it until realized our profit depleted and gone. It's happened mostly subconscious. Especially if you do it almost every day. It's common psychology, not accepting the change. It's hard to accept the change, even if you want it. It's tied with your habit, and habit don't like change. Imagine if you drive a car on the left seat, suddenly the steer on the right side....awkward? Unfortunately, market tend to change habit drastically, from slow to fast and slow again, and so on.

For me, I admit I can't change that fast. Sometimes I frustrating and did the fading. Picking top/bottom. But in the end, it ended horibble. Imagine if you are fading, then suddenly market make a breakout, you change to breakout then market actually just faking. Are you frustrated? For me yes. So I just sticking to breakout pattern, no fade or fake for me. If there's chopped or slow, no trades for me. Though it's hard to identify. Picking the top/botom even with small Stop Loss just won't do good. That's why I kept looking for trending market. Not chopped market like ES, or trade EUR outside US session. Also I don't like take 10ticks there, 15 ticks there, -10 ticks. That's tiring, and on chopped market, it's hell cause profit come from fading mostly.

Like chart above, EUR make 60 ticks range hi-lo, what will I do? I just wait till US Session and trade it. Actually I like it if EUR doin like this. Imagine if EUR already moved 200 ticks before US session, what's left?

2 comments:

  1. range chart and time distortion effect.
    http://screencast.com/t/lgw4Q9sEIGHp

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  2. Hi cory,
    What'r u trying to say? Faster up movement means more bullish?

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