A lot of what destroys traders is the confusion between what is the exception and what is the rule. The other day we exited our short position at cost after there was no follow through. But as soon as we exited, that follow through came!!! Nevertheless, we did this to protect ourselves from the rule of what happens more often than not. The fact that the market made us look silly on this occasion is of no consequence. It was just the exception. Don't mix this up, or you will get slaughtered.
DISCLAIMER: This analysis is for informational and educational purposes only. This is not a recommendation to buy or sell anything. MarketPunks is not a financial advisor and this does not constitute investment advice. All of the information contained herein should be independently verified and confirmed. Please be aware of the risks involved with trading in currencies, stocks, commodities, cryptocurrencies and sports. Do not trade with money you cannot afford to lose. It is recommended that you consult a qualified financial advisor before making any investment decisions.