My preference for "shorting" the market?

Published on Thursday February 25th, 2010 at 06:37PM by iwogar

Funny, but for some reason, I prefer to short the market. I've been whipsawed so many times by bear candles that I seem to have developed a "phobia" for long trades. I just can't relax in a long trade, like a bear candle would pop-up any time and wreck my trade :-)Also, by comparing bear and bull candlesticks, it appears most traders would rather be bears ... I've attached a graphic that shows a price range which took 7 hours to climb and was wiped out in 3 hours, there are several instances of this. Even during an uptrend, the bear candles appear to be more volatile.So, is my experience a reflection of the bias of most traders? Do most traders prefer the volatility of the short trades? Is this just a reflection of economic times over the last year since I started trading? In any case, I am writing about this because I've noticed that my bias for shorting is affecting my trading performance badly. I find myself looking for short trades, even during an up trend!! As a daytrader, it is soooo tempting to short the market and catch those quick moves downwards. However, in uptrends, this is a low probability trade, difficult to predict since it's counter trend and my results reflect this. I find that i make much more money in down trends as a result of my bias.I still need to work on my triggers for initiating long trades, I'm getting whip sawed too many times by my breakout-pullback trigger. Also, need to refine my potential setups. As for my fears, maybe I should reduce my risk in long trades until I'm comfortable with my strategies. Another option would be to demo my long trades for a while, but nothing replaces the emtional experience of the real deal.

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