How To Not Chase?

C

chaser123

I chase, I will admit it, and it is painful to watch my trades turn red. Then I hope for it to go back up. I just can't sell the highs or buy the lows. I always chase into a move. I think I expect a large run in that direction or further fuel to the fire when I chase. I review my trades and I am literally someone else's, exit. I just can't seem to short the lower highs that form or buy the higher lows when I want to go short/long. I know I chase I just can't not chase when in the moment.

I guess my question is, for people who buy lows what is your conviction to do so? I was thinking of trying to buy lows when they start turning and scratch them when they fail. Chasing is really the bane of my trading for now.

Now that I write this, I can see what my thinking is. When I pull the trigger and expect a selloff v.s. when I don't pull the trigger because I fear a sell off. Greed and fear, right in front of my eyes.
 
Create a plan in premarket and set limit orders. If they hit set stops. If not wait for tomorrow

I mainly shortsell and this is what I do. Some days I waste money on locates that I don’t end up using but it’s better than chasing and losing on something I know I shouldn’t have trades
 
I can point out a lot of things wrong with what you are doing. I hope you haven't quit your job yet because you're going to need it.

I think you should start by trading with a very small position so you don't get emotionally attached to the money you are trading with.

It also sounds like you are impatient. A patient person will wait for the trend to dip before buying in. Not buying in at the peak of an uptrend because "It's about to go to the moon man!"

I already know you're not going to listen to me, so after you get done losing more money maybe check out some youtube videos on pattern formations on charts, and helpful indicators. And start trading with a smaller position until you figure out how to trade better.
 
Dont buy pre market !!! Dont buy after hours !!!! Dont buy the open !!!!!
Wait about 3-10 minutes after the open. The open is the wild west, everyone has their fingers on the trigger. Trust me, it will make a huge difference.
I lost the MOST money buying pre market, after hours, or the open. Dont ever buy huge gap ups, let them come in. I did that with SONO today. Opened up much higher and I let it come in and then pounced amd made a quick .60 cents on 1000 shares. I bought at 33.70 and sold at 34.30. It went to 35 but who cares, it quickly reversed.
Also, it was almost $37 pre market.
 
easymon1 said:
What triggers a buy or sell to enter when you follow your system and it works?
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I agree with this 100%. I used to chase a "long time" ago, but not any longer. Whether I buy or sell, it's because there's a specific set of conditions I'm looking for that have been satisfied. It's perfectly clear to me when they are there, and plain to see when they are not. I don't chase anything! I wait for the manifestation of setups I have planned for in advance, and pull the trigger if-and-only-if they actually materialize.
 
longandshort said:
This is a well known behavioral issue. Improve your system to incorporate systematic triggers to help you reduce that risk.
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Exactly! Once I had a well-defined system with a clear understanding of how and why it worked, psychological factors such as FOMO, emotional attachment, revenge trading, etc., were simply no longer an issue. Trading became much more objective with the vast majority of subjectivity taken out of the picture.
 
the_gem said:
Dont buy pre market !!! Dont buy after hours !!!! Dont buy the open !!!!!
Wait about 3-10 minutes after the open. The open is the wild west, everyone has their fingers on the trigger. Trust me, it will make a huge difference.
I lost the MOST money buying pre market, after hours, or the open. Dont ever buy huge gap ups, let them come in. I did that with SONO today. Opened up much higher and I let it come in and then pounced amd made a quick .60 cents on 1000 shares. I bought at 33.70 and sold at 34.30. It went to 35 but who cares, it quickly reversed.
Also, it was almost $37 pre market.
More...
that is me as well, got kill at the first 5 minutes and spent my whole day grinding it back.
 
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