Thursday, November 04, 2010

Belief in your method and the opinions of others

If you really believe in your method you will be able to ignore all the other theories, calls on forums and bulletin boards, and be able to sit through periods of uncertainty.

It took me a long time to get to this stage, despite the fact that I could see that my method worked, and that it continues to do so.

I have steadfastly continued to trade on the long side, even though there is seemingly a lot of opinion out there that the markets are due to fall, this is a major top, this is overpriced etc, etc. They may be right - but not yet. The market will tell you when it is time.

Because I believe in my method, I am able to ignore the predictions and protestations of others, and simply follow my rules.

Support and resistance levels get broken for a reason - the breakout to show the start of a new trend is the signal for me to get interested and look to intiate a position.

As I've mentioned before, the ultimate metric to follow is the simplest - price. If price is going up, you buy, and if it's going down, you sell. In my very simplistic and straightforward world, who needs to predict?

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