WHAT IS WRONG WITH THE CROWD?

Sounds common right?

There is nothing wrong with the market indeed. The only thing that could go wrong is you and your account.

The craziness in market's reaction is something that we really have to respect. The crowd has its own fears and worries. The movement of the price is a direct reflection on what the market believes. Sometimes we got it right, at times we got it wrong.

So, how do we capitalize on this crowd's madness?

The thing is, it is easy to see a trend after it is there. It is about getting in the earliest possible with confirmation that remains as a challenge. False signals and whipsaws are so common that even when the real signals are there, we fail to pull the trigger due to previous whipsaws.

Hence, some simple observations that I would like to share here:

1. Like it or not, we all must operate with a system or we are no different than gamblers.

2. The market was, is and will be crazy at times. We are not entitled to question them.

3. Playing big lots or over-leveraging our account is the number 1 killer.

4. Riding losses instead of riding profit is another killer.

5. Failure to Pull out before it's too late is also another killer.

6. During Asian sessions, markets normally operate within certain price channels before making major breakouts once it approaches 2.00pm local time when EU and London wakes up.

7. You feel that the market is always against you. You hardly get the plus once a position is opened.

8. At times, the simplest strategy is to buy at support and sell at resistance.

9. Be careful not to predict news outcomes... but...

10. At times, good and correct predictions do pay off handsomely...

Last but not least, in my opinion, trading like a textbook is good for safety reasons and survival. But talking about capitalizing the big move when it happens, you do have to challenge certain boundaries in order to get the big fish.

Yeah the gurus will always say do this and that. But the fact is, no one really play by the rules all the time. At times, I just use simple common sense by looking at the price actions on the hourly candlesticks and make the entry base on simple guess on probabilities.

Most importantly, know your risk and be responsible with whatever decision you made. You knew there is a consequence to every decision and action that you take.

;)