Recent rally was a BULL TRAP ???
What Does Bull Trap Mean?
A false signal indicating that a declining trend in a stock or index has reversed and is heading upwards when, in fact, the security will continue to decline.All markets do the same thing, it’s really quite strange to contemplate this but there is a common element between trading Soybeans, stocks, currencies, and futures… and that common element is, of course, that all markets are traded by human beings who all suffer from the emotions of fear, greed and panic.
What makes a successful trader? Why do some make fortunes whilst others try again and again only to fail dismally?In my experience there is a holy grail in trading, and that is education.You cannot hope to beat seasoned, practiced traders if you do not have a foundation of tried and tested tools, strategies, money management, discipline and patience.
I have seen many other interpretations of these great works, but as the title suggests, simplicity is the key. Anyone with the right knowledge and determination can succeed, its truly not that hard. You need some proven signals, and the discipline to wait for these signals to appear, then apply a proportion of your trading capital to buying or selling the market.
It is pertinent here to stress that trading with the trend is the basis for all my trading. I don’t trade against the trend, or counter trends, I wait until I know which direction the chart indicates and follow the herd. I don’t want to lead the herd, or anticipate their next move, I am quite happy to follow in the wake and profit from that.
What Does Bull Trap Mean?
A false signal indicating that a declining trend in a stock or index has reversed and is heading upwards when, in fact, the security will continue to decline.All markets do the same thing, it’s really quite strange to contemplate this but there is a common element between trading Soybeans, stocks, currencies, and futures… and that common element is, of course, that all markets are traded by human beings who all suffer from the emotions of fear, greed and panic.
What makes a successful trader? Why do some make fortunes whilst others try again and again only to fail dismally?In my experience there is a holy grail in trading, and that is education.You cannot hope to beat seasoned, practiced traders if you do not have a foundation of tried and tested tools, strategies, money management, discipline and patience.
I have seen many other interpretations of these great works, but as the title suggests, simplicity is the key. Anyone with the right knowledge and determination can succeed, its truly not that hard. You need some proven signals, and the discipline to wait for these signals to appear, then apply a proportion of your trading capital to buying or selling the market.
It is pertinent here to stress that trading with the trend is the basis for all my trading. I don’t trade against the trend, or counter trends, I wait until I know which direction the chart indicates and follow the herd. I don’t want to lead the herd, or anticipate their next move, I am quite happy to follow in the wake and profit from that.
No comments:
Post a Comment