I want to share with you a mindset about why, as a trader, you often face trouble when the market hasn’t yet shown a clear Swing Buy or Swing Sell signal.
When the market is in a good state, meaning it’s showing a clear Uptrend or Downtrend, you’re almost guaranteed to make a profit. However, during such times, your only issue is taking profits too early, scalping prematurely. You then re-enter at a new, higher position than before and continue scalping multiple times within a single Swing trend.
As the Swing trend nears its end, that’s when the market starts to take back the profits you made earlier. The market reclaims the capital it “lent” you and even collects some of your gains as interest. When the market enters a phase of unclear direction or is preparing for a new trend, you carry the Swing mindset from the previous phase into this Scalping phase, expecting the market to deliver the same big profits as before.
This is exactly why your positions are prone to losses and frequently hit Stop Losses, causing you to lose a chunk of your remaining capital.
This is how the market takes money out of your hands. Do you find yourself in this situation?
When the market is in a good state, meaning it’s showing a clear Uptrend or Downtrend, you’re almost guaranteed to make a profit. However, during such times, your only issue is taking profits too early, scalping prematurely. You then re-enter at a new, higher position than before and continue scalping multiple times within a single Swing trend.
As the Swing trend nears its end, that’s when the market starts to take back the profits you made earlier. The market reclaims the capital it “lent” you and even collects some of your gains as interest. When the market enters a phase of unclear direction or is preparing for a new trend, you carry the Swing mindset from the previous phase into this Scalping phase, expecting the market to deliver the same big profits as before.
This is exactly why your positions are prone to losses and frequently hit Stop Losses, causing you to lose a chunk of your remaining capital.
This is how the market takes money out of your hands. Do you find yourself in this situation?
The RainBow MG3 Indicator identifies trends, reference prices, wave start times, and trend endpoints while sending alerts to your personal Telegram. Join the RainBow MG3 community on Telegram: t.me/rainbowmg3
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
The RainBow MG3 Indicator identifies trends, reference prices, wave start times, and trend endpoints while sending alerts to your personal Telegram. Join the RainBow MG3 community on Telegram: t.me/rainbowmg3
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.