Day Trading & Forex Forum

sachuc

I tend to biased towards shorting I find a excuse to short however I try against it and how much I lose except in very strong uptrend where I do go long mostly I lose where the trend is not strong in any direction and suddenly trend goes up
some times I go long and lose How to deal with this?

shadowninja

Why the short bias?

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tomorton

Let the chart of whatever you are trading show you its trend before you decide what to do. For your investment/trading timescale work out how long a trend needs to be established before you would open a position. If you are trading equities, do not ignore the wider market - it would be hard to succeed shorting the one US stock from the Dow that is in a downtrend if the Dow itself is going up strongly. Work out the signs of trend that best show the direction for your markets: backtest over charts of previous periods to make sure you are right.

Remember, it should be Ready, Aim, Fire, not Ready, Fire, Aim.

sachuc

Short bias bcoz i have mostly only gained in ln short positions in index futures so I have to consciously be very delibrate force myself to be long when trend stronly up but in temp falls i play for fall continuation and it reverses and I lose
Ready, Aim, Fire, not Ready, Fire, Aim quote was good perfect for the context

miracletech

First of all the way the market has been the past few months, there are some rational reasons to have a short bias when trading the index futures. A long bias would certainly be more harmful.

However one way to deal with the bias would be to make sure that you have very specifically defined setups, that you commit to yourself that you will follow. When you are trading then just concentrate on the setups. If the setup says enter long, you enter long. If the setup says enter short, you enter short. Period.

Good trading,
Miracletech

tomorton

Hi Miracletech - Well put. I have such a range of set-ups, using just 9 set-up patterns, 3 of which are only intra-day, and all can be either long or short. However, yesterday and today I over-rode the signal from my best pattern becasue I could not believe the FTSE100 would go any higher. And it did. You put it well, I have to commit to myself that I will follow the set-up.

tripleogstar

So what are your patterns, and what is the success rate

tomorton

I can list my patterns as below, but knowing what they are will not necessarily enable you to profit from them. You might trade in different markets to me, where some of these patterns will either not appear or not work. For example, a pattern that features a morning opening gap wil not appear or at least not have the same significance in a 24 hour market as in the case of the FTSE100, where the underlying market closes at 4:30pm for the night. For full understanding of most of these I would recommend Raschke & Connors or Rivalland: I have boosted the tally to 11 -

80-20 Daytrade
Whiplash
Shuttle 14 (my designation, simply fading pullback away from 14MA)
Key Reversal
3-Day Unfilled Gap Reversal
Rivalland 3-day pullback swing
ID/NR4
60-min Opening Range Reversal
Opening Gap Fade
4/9MA Crossover (Golden / Dead Cross)
Company Results Trades – Follow reaction established at close of results day for 48 hours.

All strategies that work have a simple basis but become complex in practice. Study, learn and practice to succeed.
Best wishes.