Guy, I am having a tough week. This weird cycle I have since many weeks ago keeps happening and I need to break it. Somehow, I will be up early in the day, then mistakes start happening. I have noticed that nothing is different about my psychology, and my thinking (NO revenge trading etc), but just randomly wrong. What can I do?
Today’s SPI and S&P are great examples of ‘buy rumour sell fact’. Bullish in the morning after pretty much all the press was expecting Yen intervention. Then there was the announcement (shortly announced to be false). The Dollar rallied, SPI didn’t (as it had already had a great run), then the Dollar fell back as it was announced there was …
Question: This type of market (S&P and SPI) may make you think a bottom is around the corner and you be lured into buying at the first sign of reversal. How can we avoid taking the wrong signals?
This video shows two intraday top side breakouts in the SPI – one real and one false. The key is to know when to expect which.