The fatal mistake in trading in made,
I was guilty of this.
Whenever I saw a big move in the markets, I told myself:
Quick! Get into this trade right now. The market is leaving without you!
So…
I’ll “chase” the markets when it’s so bullish, and looked like it’s going up forever.
The outcome?
I lost big when the reversal came — and I’m long near the highs. Ouch.
So, why do many traders make this fatal mistake in trading?
Well, I can only think of this quote…
A fatal mistake in trading most traders make is using their own fear as an exit signal and their own greed as an entry plan. — Steve Burns
Now after being bruised and battered, I’ve wisen up…
Instead of “chasing” markets, a better way is to trade is, to let the markets come to you.
Which is what you’ll learn in today’s video:
- How to stalk the best entry by letting the market come to you — like a lion stalking its prey
- One little-known trick to “chase” the markets like a pro (for advanced traders only)
- The two best trading setups on my radar (hint: one of them has broken a key Support area)
So, go watch it right now:
This Fatal Mistake in Trading has Destroyed Many Traders
I hope you’ve enjoyed this week’s market analysis and explanation of a fatal mistake in trading.
If you’ve got any questions, don’t hesitate to let me know in the comments section below. Cheers!
Do you want to learn a new trading strategy that allows you to profit in bull and bear markets?
In the Ultimate Guide to Trend Following, I will teach you this powerful trading strategy step by step, along with charts and examples.
You can download it here for FREE.
when you use a trailing stop or a stop loss ” on a closing basis” 1) do you have a max draw down? 2) if not how do you control your risk reward ratio if it closed with a fat tail wide range bar?
3) do you have two stops–the closing but but also a max draw down stop loss? to prevent a large loss.. 4 ) how do you calculate your drawn down max stop loss ( your 2x ATR, or support/resistance as normal.
1) I don’t have a max drawdown but I do have an initial stop loss which is 2ATR from entry
2) Refer to above
3) Refer to above
4) https://www.tradingwithrayner.com/use-atr-indicator-set-stoploss-2/
Hi Mr Teo
I’m learning hence may I know, we can trade stock in 4 hour? Or any other timeframe?
If U find my Qn stupid is ok U choose not to reply.
Thanks
Hi Lim,
Yes, that’s possible but more applicable to US stocks as it has greater liquidity.
Rayner
Hi Rayner,
do you trade all those different Markets in your videos with CFDs or on Futures (high maintanance margins)?
Hi Pasquale,
My trend following trades is on CFDs.
Rayner
Hi Rayner,
I am confused with how to trade Wheat now. Currently, price formed a hammer on the daily chart. Let’s say this hammer works out and price retrace back to the 20EMA in the 4h time frame, I am confused if I should short on based on the H4 and or long based on the D1. Any advice?
Hi Jun Yu,
The question is which timeframes are you trading? The daily or 4 hour?
Hammer that occurs in middle of nowhere is usually a continuation move based on my experience.
Rayner
I’m trading the the daily chart but was wishing to find a better entry by going to the 4 hour chart.
The wheat chart formed a hammer at support area. That makes it difficult to short if I go down to the 4 hour chart and see that price actually retraced to a value zone.
Hi JY,
If you’re having uncertainty about this, then stay out.
It’s not wrong being on the sidelines.
Rayner
ok thanks you for the advice.
You’re welcome, JY.
hello, rayner..i read all your blog post, it very good and inspire..thank you for your knowledge.. Thank you, hoppefully you are blessed by market..cheers
Hi Fran,
Thank you for reaching out, glad to hear that!
Rayner