Can I get on my soapbox here for a minute?
Based on comments made on #TraderBite this morning about the trend up yesterday and how it contained a TON of delta divergence sell signals and seemed to rise on negative delta. Many have emails, DMed, etc. Saying they were the "imbecile" selling all the way up....
So I get why this happens and how enticing it is to try to call a top and catch that turn for a super-dose of dopamine and euphoria. BUT this is not trading. Not by a mile. It isn't stupidity, it is just not recognizing where we are on the map and staying objective....
despite the emotional needs and enticements of being "right"...being "the man"..."the winner"..."the ace". The allure of catching that turn is so strong. Again, this isn't trading as a profession, this is trading for a dope hit. So here an analogy to put this in place...
The market exists in 2 conditions. Period. It is either in balance (consolidating and facilitating trading - its preferred condition) or out of balance (trending and seeking buyers/or sellers - price discovery). If your plan doesn't have tools for BOTH of these conditions...
Meaning if u are a momentum fader only, then at a minimum u MUST have a plan for identifying a trending condition and stay the hell out. If u trade breakouts, then u have to focus on recognizing conditions for this and just do nothing until that shows up...
If u r able to develop a plan for both, then ur job is to pull the right tool for the job when it occurs. Simple, right? Yep....simple but tough as hell to get there. So sitting here selling momentum to fade all day is just 💩 trading & turns into a gambling for dope....
It no longer qualifies as trading at all. So here's the analogy: I'm a pro builder. I have to show up with a saw, hammer, power tools, etc. I use the tool for the context/job in front of me. I'm not trying to hammer a nail with a saw. I'm not trying to....
To saw a 2x4 with a screwdriver, etc. U don't have just 1 tool. U have to have many but u also must recognize what is in front of u. There many ways to do this. So trying to nail a rough all day with ur saw is equiv. of what many did yday. STOP IT! Take ur stop. Walk away!
Once u walk away, come back later & FIGURE OUT where the weakness is and address it. Do post-mortem. Define action. Make that a new tool. Move forward. Coming in today to buy dips is just a dip-💩 thing to do. We r again out of balance, so don't fade. Period!!
There...I said it. I'm done. I just hate seeing ppl lose 40-60% of their account in 1 day. What a waste of many opportunities. Take the f-ing stop & stay objective. Recognize emotional triggers & step-aside until they subside. I want u to be here tomorrow. We are community.
Damn it... Another nickel goes into the misspell jar for "sew"
