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Wrote a rant on the matter of countertrend vs. trend reversal trades: Many people consider trading reversals to be a form of countertrend trading. They look for every slightest reversal sign, jump on it and if trade is profitable, grab the quick scalping profit. No wonder they also have many...

There's a big difference between trading against the trend (trying to catch the minor pullback only, while believing that trend will continue) and trading potential trend reversals (believing that odds favor trend to completely reverse around our point of entry).

I think Taleb was right about scalable professions (and trading is very scalable) as being extremely hard to succeed in. And if consider how many of 100% treat trading seriously, as a real business, not as a kind of get rich quick game, 5% sounds like way too much.

Welcome aboard! :D

Never blew up completely, but had some serious losing streaks, which are probably even worse emotionally. :)

123 reversal pattern as part of support level re-test... http://www.cornixforex.com/2012/02/123-reversal-as-part-of-level-test/

Yea. Emotions are the hard part of our business. It takes time and a lot of practice to gain confidence needed to not be upset about some losses and just keep looking for the next decent setup with an eye not turbid by tears from last losing trade. Those failed setups are extremely good...

Speaking of breaks, I am almost fanatic of "2nd mouse" approach, unless good context supports the trade. :)

Good example of a failed reversal, which turned into a profitable continuation trade: http://www.cornixforex.com/2012/02/failed-reversal-turned-into-with-the-trend-trade/

Even a bit earlier profit is still profit. :)

It behaved classically this time, bounced right off the last swing low (reasonable target).

When I see this kind of trade, I never hesitate. :D Doesn't happen often, but when it does, it's one of the best trades any trade can take (IMO). http://www.cornixforex.com/2012/02/good-with-the-trend-trading-setup/

Here's how to deal with pattern failures during the tricky choppy time of the trading session. :) http://www.cornixforex.com/2012/02/how-to-deal-with-pattern-failures/

Here's a very good real life example of how a bit wider stop is useful when combined with some common sense. :) We always must remember, that tight stop-loss is not a cult to worship, it's our tool to use. http://www.cornixforex.com/2012/02/good-example-of-reasonable-stop-loss-placement/

I usually add the new one and keep both for some time, until the old one obviously does not act as possible S/R anymore.

Yea, trend is surely up today right into the very good German ZEW data. So shorts only are good as scalps.

Nice one, pity I missed it being distracted with non-trading related stuff. :)

Here's an example of how trader's trick entry can provide safer play of classic reversal patterns in choppy environment and even against the strong trend. http://www.cornixforex.com/2012/02/1-2-3-reversal-setup-traders-trick-entry/

Thank you for the kind words, Wolf! NoDoji is great and I am proud to consider her my friend and colleague. Really glad that you find the journal useful. I'll keep posting examples of good technical setups, which I consider to be worth attention.

Indeed... Must be a lot of selling pressure there, which stopped the rally so far.