Know and understand these natural human tendacies and use this knowledge to make profit..
In the market we often see large volitile swings to the upside and downside..
This happens generally when there is a big news catalysts, or when a stop loss raid or a short squeezes becomes bigger than itself due to the previously listed driving factors in the market.
You can use the driving factor, fear of missing out to sell/scale out into price strength at your PPM.
This secures profit while mitigating your risk of loss.
I highly reccomend all traders practice this.
Don't be greedy, don't be overconfident..
Consistency is what you seek.
You can use the driving factor, fear of loss to "buy the fear."
Voltile moves to the downside are far more likely to be over-reactions due to human nature..
The fear of loss is far more likely to trigger an emotional response than the fear of missing out.
These over-reactions can lead to set ups with high probability of profitability IF they have created a floor and have signaled and confirmed a bullish reversal.
Please, let me know if you enjoyed this thread.
Any related questions? Comment or dm me.
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For reference:
"Bulls take the stairs, bears jump out the window."
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How to swing trade by Brian Pezim
"Trade without fear and overconfidence."
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Trading in the zone by Mark Douglas.
The 2 main driving factors for the market concept introduces to me by @RadioSilentplay
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