A Trader's Dilemma, 24th January 2023
🖼 Daily Technical Picture 📈
➤ Another bullish day. Price has reversed the recent weakness and set a new short-term high. Yet, I'm not buying into it right now. Why? Well it's not because of my fundamentally (misplaced?) bearish view. I don't trade on those views. I trade by reading the short-term technicals. I'm completely agnostic when it comes to being long or short.
➤ Today there is no trade because I am faced with a Trader's Dilemma and it's forcing a strong debate within.
➤ The price setup is NOT something I've seen from years past (at least 13yrs in my data). It looks very much like a bullish continuation in the short-term but with bearish overtones too. If I went bullish, I would be using a max. position size. If bearish, half size. So, what's the optimal decision? If I had to force a trade, I would be a buyer. That means using max. risk on an untested trade set-up. Perhaps reducing the trade size is better? That would mean giving up on large profits knowing I'm more likely to be right than wrong.
➤ I've made my decision and have decided to restrain myself in making the trade because this trade set-up is "novel". In cricketing terms, I'm letting the ball "pass through to the keeper" and ignoring my greed for making money. At the end of the day, I'm not "forced" to make the trade. I can choose to not play. There's always another opportunity with a better set-up.
➤ I currently hold no position.
➤ Conclusion: What would be your decision if faced with this situation?
➤ Another bullish day. Price has reversed the recent weakness and set a new short-term high. Yet, I'm not buying into it right now. Why? Well it's not because of my fundamentally (misplaced?) bearish view. I don't trade on those views. I trade by reading the short-term technicals. I'm completely agnostic when it comes to being long or short.
➤ Today there is no trade because I am faced with a Trader's Dilemma and it's forcing a strong debate within.
➤ The price setup is NOT something I've seen from years past (at least 13yrs in my data). It looks very much like a bullish continuation in the short-term but with bearish overtones too. If I went bullish, I would be using a max. position size. If bearish, half size. So, what's the optimal decision? If I had to force a trade, I would be a buyer. That means using max. risk on an untested trade set-up. Perhaps reducing the trade size is better? That would mean giving up on large profits knowing I'm more likely to be right than wrong.
➤ I've made my decision and have decided to restrain myself in making the trade because this trade set-up is "novel". In cricketing terms, I'm letting the ball "pass through to the keeper" and ignoring my greed for making money. At the end of the day, I'm not "forced" to make the trade. I can choose to not play. There's always another opportunity with a better set-up.
➤ I currently hold no position.
➤ Conclusion: What would be your decision if faced with this situation?
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✅ Copy My Trades @ eToro, etoro.com/people/mrstocky
✅ Verified Track Record 📈
Not Investment Advice
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