Thread about fighting the strong trend.Mostly re-plug from old tweets 1/10
Any professional Doctor,Engineer,Teacher or let it be anyone never forget basics but over time improve from learning and experience..Traders are the category who skip basics and complicate things over time.. 2/10
Learning should improve basics..And one of the quite basic thing is not fighting the gap or drive with preemptive trades..For eg, any clean gap which develops value higher from gap tend to close on gap side.3/10
Nothing goes in straight line but will make small grind and then do intra spikes and one final spike towards end of the rally.Have seen most get lured in small grind to fade the move and give up on spikes..Clear case of lack of implementation of whatever is learned over time.4/10
When in balance one should look for mean reversion trades and when its moving out of balance one should try to look for opportunities to join the trend..Enough is said about this..Another basic thing. 5/10
When in tight range and in balance every breakout attempt is expected by many to get follow through but when there is clear sign of extension after a grind is done, first thing they try is to fade the extension instead of joining on the extension side..6/10
When you have good extension from a balance and extension is sustaining means its holding strength which is gathered from balance..One should understand that he is fighting such strength if he tries to go against it..7/10
Watching tape over time gives the learning of what kind of structure is underneath when extension is happening and who is dominating the extension..Form of extension like gap,drive,tail and acceptance of extension via value and holding extension singles etc gives a fair idea 8/10
about whether should go against the extension or should look for opportunities to join the extension..will take time but can be learnt easily..But after learning should try to stick to the basics and should not mess up..9/10
Last but not least,during such extension early entry is good and in mid way also fine with some reduced size.. but once you missed the meat of the move better stay aside and avoid entering too late as emotional imbalance would be too high when entered too late #End 10/10
