This morning showed us another beautiful trend reversal in the late morning. After two nice long trade setups, we had 2 quick shorts down to the key support area at 1192.
It’s so vital to not get an “emotional directional bias”… In other words, don’t get locked into thinking the trend is going to continue forever! And don’t try to guess when it’s going to end. In my opinion, it’s best to look for objective signs that the trend has ended, wait for a high probability setup, and take profits at the first sign of weakness.
The reason I say take profits quicker when you’re taking a “counter-trend trade” is because you’ll be trading into areas that have proven to hold before. Here’s an example of what I’m talking about:
We went into a lot of detail into our Foundations Class, which teaches the basics of how to use the MAP Trade Signal Software. For those of you not familiar with our trading strategies, I did a quick recap video of the setups before the lunch break:
Also, we had a great time at the 2011 Las Vegas Traders Expo. Our happy hour inspired me to write a post on some of the topics we were discussing.
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