That's all a part of trading. It's unavoidable. Sure, we only turn the volume up when it's crazy or whatever, but we must turn the volume up. The key is to hear what everyone has to say and what proof they give. We study it and if we agree we tell our selves and Listen to ourselves. We should hear them but only listen to ourselves. Hear them all the way out with an open mind weigh what they say and convince our selves one way or another and lastly listen to our selves.
Maybe it's just me but it's never just me, but I have these times in the market where I'll tell myself something right and I won't listen to myself!!!!!!!!!!!
This happened today. I told myself I wouldn't buy $FB until it got over twenty. I've been trying to catch a short squeeze in $fb for the past 2 sessions. (what was I thinking?) I told myself I would let price tell me when to get in and $20.00 made sense as it was a level $fb couldn't hold yesterday. I tweeted it and everything.
I saw transports making new swing highs and then I saw $fb start pushing higher. Here's what $fb looked like on an hourly chart:
I went to a 5 minute chart of $fb and saw this:
And then I bought $fb shares and tweeted this:
I didn't listen to myself. I didn't listen to the trader in me. I was smacking $CL_f and $YG_f and got cocky. my stop was the low of the day and it got taken out with no problem and I sold and tweeted this:
It was a $400 dollar reminder. Not too expensive relative to the cost of past reminders. The key is to need less or no reminders. We don't need a lot of reminders that fire is hot. We shouldn't need many to know to listen to yourself. You do all this work to be a better trader and then in a split second you throw it all away not listening to yourself. I didn't lose much on the trade but when you consider the fact that if I had listened to myself I would have never lost any money! $fb never traded over $20. I would have sat out the trade and smacked $cl_f and $yg_f and been fine with that. But I didn't listen to myself. I didn't listen to the trader in me.
They say the best can learn from others mistakes, I agree. I'm not the best so I just want to learn from my own mistakes. But I did learn from others and that's way I don't make they're mistakes, I make my own. Hopefully someone reading this will learn from it. They will still make mistakes but they don't have to make my mistakes. You don't have to make my mistakes. I know to listen to myself I just needed a reminder. That reminder costed $400 dollars. You know to listen to yourself but maybe you just needed a reminder. This one only costed a visit to my blog... Thank you for stopping by, and good luck with your trading!