Yes, definately noobish from his
side but he was blinded by the technicals and couldn't believe it won't
work out again - he was under the impression that he found a
"sure-thing" -if he could just stick it out. Basically he suffered from
the same old thing - is the trend over? Should I cut now? If he followed
his original way of analysis he would have closed his positions but
because he was using something he did not fully understand he blindly
believed it will get him out of trouble.
Don't we all want a magical crystal ball that simply tells us what to do and we can believe it absolutely? The worst thing some traders do is to add a whole bunch of indicators trying to work out the interaction between all of them. You are adding degrees of freedom thus complexity thus more uncertainty. There really does not exist a magical thing somewhere and it has not been invented yet and it will not be invented on a forum. Trading is hard work, there is a degree of luck involved but the amount of luck you need can be reduced by hard work.
Don't we all want a magical crystal ball that simply tells us what to do and we can believe it absolutely? The worst thing some traders do is to add a whole bunch of indicators trying to work out the interaction between all of them. You are adding degrees of freedom thus complexity thus more uncertainty. There really does not exist a magical thing somewhere and it has not been invented yet and it will not be invented on a forum. Trading is hard work, there is a degree of luck involved but the amount of luck you need can be reduced by hard work.
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