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Countertrend

The Psychological DANGER of Counter-Trend TradingI see many traders consistently trying to fade the trend, but be careful. In this post, I will explain the psychological problem that can arise from it. Every time you get something that you want in life or that is pleasurable, you get positive reinforcement, and your brain says "I want more of that stuff" and then the brain says: "Keep doing what you are doing" ---> Behavior is learned. (Your neurons in your brain got linked together). Once the behavior is learned, and the neurons linked, it is very hard (near impossible according to behavioral science) to extinguish this learned behavior! Old habits die hard. Thus, the trader keeps doing the behavior that over the long run will generate losses. WHY? because reversal points are momentary while trends are prolonged and if the trader is trying to constantly make money out of the market, he continues to do the learned behavior, hoping that "NOW there must be a big correction", even though a correction can be many months in the future. So now you are probably asking: "ok Mr. Ph.D. in psychology, what is your solution? I already learned the wrong behavior, am I doomed?" According to science, there is hope, instead of trying to extinguish the behavior, you need to re-write it with the new behavior (replace it with a new behavior). What does it mean in a trading context? That means that if you are in the past got burned from counter-trend trading, it is recommended to join the trend --> you will generate profits ---> positive reinforcement ---> newly learned behavior ---> ah-ha moment
NASDAQ:AAPLEducation
by ZoharCho
1
USDJPY-Weekly Market Analysis-Mar21,Wk4Trendlines are amazing, there are many ways you can use them, for this instance I'm waiting for a shorting opportunity when the candle touches the red line but not closing above it. When it hit the middle trendline, I'm going to shift my stop-loss to entry and once it reaches the bottom trendline, as long as it closes below the trendline, I'm going to keep the trade, if it doesn't, I'm going to exit my shorting trade and turn it to a buying trade.
Short
by RaynLim
GBPUSD-Weekly Market Analysis-Mar21,Wk4GBPUSD is in a sideways consolidation. This setup allows us to trade within the zone(green box). The setup is safer when we are shorting from the top of the green box, than buying from the bottom of the green box, and the reason for that is the previous bearish trend which coincides with the starting point of Point X on the Bearish Shark. However, if you are an aggressive trader, buying within the box can work as well and in the long run as long as you aren't flustered nor overtrade, you will be profitable.
Long
by RaynLim