Over the past few weeks several readers proclaimed that they were heading on a little vacation and I decided to follow suit. For one May is really the last month before Spain is being invaded by wave after wave of sun deprived Nordic barbarians, thus travel becomes all but impossible and of course more expensive throughout the Mediterranean. Besides if you want to enjoy Europe in relative tranquility but without the occasional surprise spring snow storm then May is a great time.
We’ve been seeing a lot of whipsaw as of late but apparently the respective dominant trends appear to always assert themselves. Which continues to be manna from heaven for dedicated mean reversion traders and habitual dip mongers. If you remember my posts earlier in the week, we were waiting for a few promising looking entries. So let’s see where we are today and if it’s time to pull those triggers:
I had to kick that mythical German discipline into overdrive today as I kept tripping over juicy looking but yet immature setups. Practice what you preach they say. If you read yesterday’s post then you recall my thoughts on why premature (discretionary) entries can lead to early stop outs, that they will affect your position sizing, and that they affect you psychologically if you let them. Another perhaps more obvious aspect I didn’t delve into was the fear of missing out, a.k.a. greed’s ugly cousin.
You probably can remember at least one campaign in your trading career you regret having missed out on. It’s the ‘one that got away’ despite your best efforts to grab a position when conditions started to align in your favor. For me personally it continues to be one of the biggest psychological as well as technical hurdles to grapple with: When is the perfect time to get positioned? Well, that’s easily answered of course: Just before it starts taking off!