This evening I took the bus home after knocking off. I arrived at the bus stop, which was pretty crowded. Unlike the majority of the commuters looking out for the bus while awaiting, i was pretty engrossed with in my cellphone, or rather in my own thoughts. Less than 5 minutes later, i saw almost everyone gushing forward towards the roadside where the bus stops (very typical scene in singapore). I followed.
Without understanding the key fundamentals, i simply jump into trades when price is breaking a single direction or a trend forming, realising it was only a false breakout.
I turned to the junction where usually the bus turns in, there was indeed a bus coming, but when the green light came, the bus turned the opposite direction and went away.
Such a common false signal we face in our everyday trading life, falling victim by jumping in mindlessly, at least for me.
Given that if this was trading, had i really made a bad move? Here is what happen next, while much of the crowds moving away by going back to their original positions in disappointment, i remained at where i was. Following right behind the fake (real) bus, it was our desired bus turning in. I was in much better position.
Trade may go against you right after you entered, but generally the overall trend might still be of your favour, so stick to your system.
I have no conclusion. Sometimes i get caught in false signal, sometimes it can be simply noise. then again. who knows.
Duration: 2 hours.
Strategy: Day-low. Long on (or rather for) retracement. No of average-ins.
As usual, my first position never went more than +2 most of the time. Taking higher size lately. It was hanging at the 0.0 fibo and i was waiting for a breakout of a new day low. finally, i decided to give up and closed my last position at profit, juz merely four seconds later price breakout into another new low. missed ten pips just like that.
i could have just stayed there for a few seconds more man. i can do that in the bus stop but i can't do that in the chart. when can i ever let my profit run?? price is still moving down.