There Is No Room In Trading To Think That Your Market Should Not Go Higher

Today, I received at least 5 emails (probably more into this evening) that they are burnt badly over the last few days because S&P has been going near straight up. Every one of these emails blame the market, the European Central Bank, situation at Ukraine and the media for messing with the market. They are all angry emails looking for sympathy and agreement that what happened should not have and it is the fault of everyone else except themselves.

It is trading 101 that we accept what happened and evaluate the situation from there. As situation changes so do our expectations. That’s why trading is about studying possible scenarios so that you can speculate accordingly. As a trader, I cannot offer my sympathy to these individuals at all because that will encourage them to not listen to the market again. Obviously they are going to hate me for my replies but it is for their own good. I have no problem with people not like me for the right reason.

The truth is, like today, all kinds of bullish signals fired up after open. Everyone having the real-time trading assistant tool opened today knows. There is no way you do not exercise cautions if you are so hell-bent to go short. Even basic chart patterns tell you it is freaking breakout of daily resistance and the dominating intraday trend is up. Why insisting on shorting into a market that has a clear upside objective to fulfill first?

Throughout my trading career, I have seen enough times how major breakout scenarios ended so many trading careers. Upon reflection, all I can say is that people are not really trading by applying their knowledge of the market. Instead, they are trading with their perceptions and beliefs.

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