My Biggest Issue

[KGTrader4]

I am realizing my big issue, or at least one of them, is that i have a hard time selling into strength, and buying into weakness. Right now i am not beating myself up for not buying into weakness, because that would be counter to the trend, which i am not interested in.
But i should be able to sell into strength in a downtrending market. As an example, (Only an example) I was thinking of selling Chevron yesterday at $170+. After a parabolic run. But couldn't pull the trigger

Just thinking out loud. I have to work on that.

 

[ET180]

Options help with the pulling the trigger part. Especially in this volatile market. Instead of buying shares (not knowing where the real bottom is), buy a call spread and give yourself some time. Then it will actually feel more comfortable to be buying on down days and selling on up days.

 

[nooby_mcnoob]

But i should be able to sell into strength in a downtrending market. As an example, (Only an example) I was thinking of selling Chevron yesterday at $170+. After a parabolic run. But couldn't pull the trigger

Your trade is stupid (IMO).

Problem number 1: Chevron is not in a downtrending market

Problem number 2: shorting a parabolic stock is generally stupid

Problem number 3: it will go down when you don't take the stupid trade and it will go up when you do take the stupid trade.

Conclusion: don't take the stupid trade.

IMO if you want to short something, you should short after the sellers show up and the buyers are gone. How many EASY short entries were there for PayPal?

 

[KGTrader4]

Your trade is stupid (IMO).

Problem number 1: Chevron is not in a downtrending market

View attachment 279964

Problem number 2: shorting a parabolic stock is generally stupid

Problem number 3: it will go down when you don't take the stupid trade and it will go up when you do take the stupid trade.

Conclusion: don't take the stupid trade.

IMO if you want to short something, you should short after the sellers show up and the buyers are gone. How many EASY short entries were there for PayPal?

View attachment 279965

1. where did I say I was shorting it? I’m long the stock at $110.
2. How do you know that problem #3 will materialize, Nostradamus?
3. Problem #1 point well taken. But if this market REALLY gets hit, WHICH HASNT REALLY HAPPENED YET, it will take all equities down with it
4. What is it about the word Stupid, that you like so much? LOL. (Just kidding, I can take it ;-) )

 

[nooby_mcnoob]

1. where did I say I was shorting it? I’m long the stock at $110.
2. How do you know that problem #3 will materialize, Nostradamus?
3. Problem #1 point well taken. But if this market REALLY gets hit, WHICH HASNT REALLY HAPPENED YET, it will take all equities down with it
4. What is it about the word Stupid, that you like so much? LOL. (Just kidding, I can take it ;-) )

OK I misunderstood that you were long.

For trading, I just look at deviation from a moving average and move on and try to sell on the biggest, greenest candle. So step 1 is to notice that the price is x deviations away from y moving average. Then I wait for the biggest greenest candle. Then I get out and I move on to the next parabolic trade. Hopefully there are 25 parabolic stocks per day!

 

[KGTrader4]

Good thought. I actually have set SD on my default chart. That’s a good use of it

 

[Wide Tailz]

You could get a business partner with the opposite problem, and force each other to confront your issues. Could even just be another successful trader sharing the same office.

 

[vincentnyc]

you have to have trading plan everytime when you trade. otherwise you just a buy and hold investor. for example...here is my trading plan when i bought x today 3/9/22...

 

[TheDawn]

I am realizing my big issue, or at least one of them, is that i have a hard time selling into strength, and buying into weakness. Right now i am not beating myself up for not buying into weakness, because that would be counter to the trend, which i am not interested in.
But i should be able to sell into strength in a downtrending market. As an example, (Only an example) I was thinking of selling Chevron yesterday at $170+. After a parabolic run. But couldn't pull the trigger

Just thinking out loud. I have to work on that.

Nobody is able to buy into weakness and/or sell into strength because everything is relative. It's only "strength" when the price goes down afterward but what if the price shot up even further after you shorted? Then you would be screwed. It's far more risky being short-squeezed than losing money on a long. You would never know whether a low is truly a weakness or a strength. Nobody knows the answer not even the gurus; that's what makes the market efficient. So don't beat yourself up about it. Just develop a sound trading system, follow it, trade small, cut your losses and let your profit run and you will do fine.

 

[KGTrader4]

You could get a business partner with the opposite problem, and force each other to confront your issues. Could even just be another successful trader sharing the same office.

Nah, it’s not really a business, even though I try to treat it that way. I’m retired and just learning, trading my own money