just done a search....lot of stuff on it.
But I came to the conclusion ages ago that there are 3 times that people take profits, early...mid...and late, in a move. And you dont want to be in the mid frame of mind. This is because it's where a move pauses and if you are in the impatient frame of mind at this point you will close on any noticeable pull back along with all the others and sods law after thats happened it will continue in original direction.
Take today as an example...the early closers will have closed at say at then spike at 34 because they are the most impatient and thus will close on the slightest pause. The most patient will still be in a postition. and might be happy still to have stops at evens. The middle guys are growing impatient now...they can see that the market has bounced 5-6 points and are getting ready to exit. But because they" wait that little bit longer" they run the risk of closing at the top of a retracement.
Obviously the entry level and current profit size can effect which group you are in .
But I came to the conclusion ages ago that there are 3 times that people take profits, early...mid...and late, in a move. And you dont want to be in the mid frame of mind. This is because it's where a move pauses and if you are in the impatient frame of mind at this point you will close on any noticeable pull back along with all the others and sods law after thats happened it will continue in original direction.
Take today as an example...the early closers will have closed at say at then spike at 34 because they are the most impatient and thus will close on the slightest pause. The most patient will still be in a postition. and might be happy still to have stops at evens. The middle guys are growing impatient now...they can see that the market has bounced 5-6 points and are getting ready to exit. But because they" wait that little bit longer" they run the risk of closing at the top of a retracement.
Obviously the entry level and current profit size can effect which group you are in .
you are right.
but it goes a some way towards explaining what is happening in the market place.
(from an academic's point of view)
I just offer it as another lateral insight or another way of looking at things.
not all trading books have to be about trading ?
but it goes a some way towards explaining what is happening in the market place.
(from an academic's point of view)
I just offer it as another lateral insight or another way of looking at things.
not all trading books have to be about trading ?
hooya
didnt trade the dax all day
just seemed to be working off it's overbought and going nowhere ?
I was er trading something else (which I mustn't mention)
lol
Ftse still above you know what - but it's touch and go, isn't it.
the t/line from 4374 seems to be holding things together (just)
if that breaks then first stop 4480 ?
btw, I am ignoring the spike close on friday pm which seemed a
blatant attempt to take out stops (with hindsight)
I think that is what the commentators call 'profit taking'
but they don't say its the mm's that are taking the profits you thought were in the bag !
didnt trade the dax all day
just seemed to be working off it's overbought and going nowhere ?
I was er trading something else (which I mustn't mention)
lol
Ftse still above you know what - but it's touch and go, isn't it.
the t/line from 4374 seems to be holding things together (just)
if that breaks then first stop 4480 ?
btw, I am ignoring the spike close on friday pm which seemed a
blatant attempt to take out stops (with hindsight)
I think that is what the commentators call 'profit taking'
but they don't say its the mm's that are taking the profits you thought were in the bag !