Reverse.......

robster970

Veteren member
4,566 1,390
the psychology of reversing a trade is a good talking point. For me the reasons to book profits (get out) are never normally enough for me to take a trade in the opposite direction. I could see how some scalpers might use this though. For example if there is an bullish opening drive from the open and then a bleed back to the opening price, this could be a signal for a bullish potential scalp from the opening price. If price isn't able to hold that opening price I can see why a lot of traders would want to reverse their position. For me personally I trade better when I wait for price to come to me rather than chase the market so I am unlikely to venture into these insta-reverse trades. GLGT

I go with this general train of thought. Nevertheless when I am taking a contra-trend reversal and the move fades, it is invariably a pull-back in the direction of the trend and therefore is by it's nature a good opportunity to get in from a considered PoV.

Nevertheless I do not do it.

To be frank, I would not try this without forward testing for a while anyway but I am intrigued by whether the bias to not do it is a function of an untested trading strategy or it is something more intrinsic like not immediately putting myself into another trade immediately after closing one out.
 

ffsear

Senior member
2,250 497
Just looked at the chart you posted. Question is, did you bail on the short, wait for the pull-back for the long and then get in or did you hit 'reverse' at some point when you realised the short was offside and you were in a pullback to go long?

I think psych wise there is a big difference between the two scenarios.



It was a case of closing the losing short. Reevaluating and then taking the Long signal over a matter of 10 minutes. So no not a case of instantly jumping on the other direction.

I'll happily change my bais in a very short timeframe, but not i won't instantly reverse through fear that I'm missing out on big move.

I agree there's a big difference, especially if you get hit twice!
 
 
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