When I felt bearish I saw trendlines broken everywhere. As a result I would take terrible short trades.
Truth is that I just felt bearish because the market was going up and I wanted to feel “smart” by picking a top.
That desire to be right... to feel smart… to “show those arrogant bulls” bit me in the ass. Every single time.
I would think I knew the future and go out and find technical analysis to support my view. I was just seeking a justification to take the trade.
I would also hang out on the internet with some of the worst traders in the world. At bear-central… places like slope of hope and zerohedge.. aka zero-edge.
Consoling myself that “I was still better than those guys” was poison.
None of the technical analysis that everyone believes is presented with any supporting evidence. You are supposed to take it on faith because “everybody uses it”.
I would put an indicator on a chart, and notice the one time it worked and not the 3 other times it didn’t. I’d buy a market just because it was oversold and watch it continue down.
I was baffled by how when I was bullish I’d draw bullish trendlines and patterns, but when I was bearish I would see the opposite.
Truth is, I was just using my charts to justify taking the trades I wanted to take. It completely baffled me how I could work harder than I’d ever worked in my life … feel like I was actually getting pretty good... and yet I STILL LOST MONEY!
I thought I would stop losing money when I got better at technical analysis... but I lost even more when I thought I finally knew what I was doing.
You can finally say goodbye to confusion, frustration and inconsistent results.