Listening to Opinions When Trend Following
I just received an email telling me why this trader was so bullish. I am sure all of you have received emails that are bullish as well as bearish. The key to your success is to follow your own plan and do not listen to others. Build a trading plan. Accept the fact there will be trades that do not work and trades that do. The key is keeping losses small.
This trader tried to give me every reason he was bullish. Maybe he is right or maybe he isn’t however. I am myself and no one else is responsible for my trading success or failures.
I tried not to have an opinion either to be long or short the stock market. Try to take it day by day and read the market. On a positive level volume was higher across the board so it was an accumulation day on all the major averages. Again, I am concerned on the high number of distribution days ( institutional selling), age of the bull market, MACD divergences as well as some other issues….We are still above key moving averages also on the positive side. Until the market proves more concretely, I am still on the sidelines ( and willing to go long)…