Lessons from my trading journal #2

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  1.  A classic chart pattern runs the risk of failure when unfavourably  located within the bigger picture
                                                         
  2. Strong signs of contrarian aggression within a correction should instill suspicion if positioned in  line with  the break. Potential companions may view the correction with less appetite. When is such a position it is best to embrace a better safe than sorry principle.

  3. Overrule the instinct of flight and judge the situation purely on technical grounds. 

  4. The first pullback to the moving average after a breakout is typically the strongest to trade, but it has to be supported by additional confluence.

  5. If you are regularly caught in ventures that are okay on the onset yet rather questionable in hindsight, chances are your perception of odds is affected by your desire to trade.

  6. When adopting discretionary management techniques, it is absolutely vital to learn to suppress teh instinct of flight and to solely exit on chart technical grounds - a reduce target objective should be part of the plan from the onset and not stem from a sudden urge to bail out.

  7. The more something is known to the market, the less impact the actual news will have on the market.

  8. To minimize the danger of getting caught in a non-compliant break, monitor how well the environment favours the wager at hand. Check the pace of the market, dominant pressures, presence/absence of adverse magnets and obstructive elements.

  9.  A trend on the higher timeframe had had more time to develop, which means that it will take a bigger market move for the pair to change course.

  10. Profits in trading are an outcome metric. Focusing on  profit goals is actually not a helpful endeavour. Trading can be reduced to actions, and all actions are subject to a process. Focus on process, obsess over the details of the process. The outcome will take care of itself.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

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