8/11/2009

Beautiful

2 Minute Crude Oil Chart
Those are some nice signals. Right? The first one was a stop out but the other 2 are things of beauty. Right? Solfest the "genius" must be counting his crude dollars. Right?

Wrong.

What happened? Remember how smart you were yesterday. Yes I do. In fact that was the problem. Recency bias reared its ugly head yet again, recency bias, we place more meaning on the most recent events rather than our historical results. Remember yesterday I was bragging about my brilliant reading of the ADX. So did the ADX let you down today you ask?

No. The ADX levels were through the roof. The problem was I didn't take it in. I saw it but I traded like I did yesterday. I moved stops too soon today. In yesterday's weak trend that was the right move, but today, in the monster trend the thing to do was hit the entry button and let the pre programmed stops do there thing.

I didn't do that. I let my "recent" success from yesterday cloud my decision making today. Result being I hit my daily stop and had to shut it down.

Trading is hard. :)

3 comments:

daytrader233 said...

Solfest,
Is Tiger's room open or invite only?

Solfest said...

It's open. It is a small group, you and others are welcome. All we ask is that people treat each other with respect.

Mirc hosts the room.

http://www.mirc.com/

And some help here on how to find Tiger's room.

http://www.vttrader.com/tigercharts/mIRCsetup.avi

daytrader233 said...

Thank you.