A reader asks a skilful question: "Do you lot accept whatsoever skilful post service on eliminating a potent bias? I am then clouded yesteryear a bias, I can't merchandise objectively."
I detect this to hold out a to a greater extent than mutual work than is typically acknowledged, especially amidst short-term traders who concur positions intraday. They detect themselves caught upward inwards strongly held, longer-term opinions virtually political as well as economical developments, which makes it hard to merchandise against those views.
For example, it is real hard for an advocate of express government/individual liberty/free markets (which, parenthetically, are unlike from the sort of statism represented yesteryear the final Republican direction as well as the electrical current Democratic one) to experience especially bullish on the futurity of the the US or fifty-fifty global economies. While I accept philosophical sympathy for such a perspective, it doesn't modify the fact that markets tend to rising during periods of cardinal banking venture ease. Fighting the Fed is to a greater extent than oft than non not a skilful agency to brand a coin every bit a trader or investor.
Too, only about traders naturally autumn into trend-following or countertrend trading styles. While either of those tin move hold out successful, becoming married to trends or fighting potent ones tin move hold out a quick agency to the trading poorhouse. The contrary of existence stuck inwards bias is existence mentally flexible: recognizing when trends are probable to maintain as well as when they are vulnerable to reversal.
Three practices attention me sustain mental flexibility. The commencement is a thorough review of marketplace indicators, intermarket patterns, support/resistance areas, value areas, etc. From the data, I require myself to formulate hypotheses virtually the activeness that I anticipate. By forcing myself to dry soil my views inwards the data, I effort to minimize subjective bias.
The minute practise that helps me rest mentally flexible is next a few basic trading rules. I am non allowed to sell a marketplace that shows potent NYSE TICK as well as positive cumulative Delta (i.e., internet book at offering vs. bid); I'm non allowed to purchase a marketplace that shows weak TICK as well as Delta. In other words, because much of my trading is intraday, I'm non allowed to struggle the intraday sentiment trend. At the same time, I'm non allowed to purchase the marketplace when TICK is positive or sell it when it's gone negative. I accept to execute ideas countertrend, fifty-fifty every bit I effort to ride a trend. In this way, I follow the market; I don't impose my views onto it.
Finally, a tertiary helpful practise is framing all merchandise ideas every bit "what-if" scenarios. If the marketplace breaks back upward on high relative book as well as real weak TICK, I would do X. If the market's selling pressure level dries upward close support, I would do Y. Included inwards those "what-if" scenarios are plans for stopping out of a trade, plans for adding to a trade, etc. By requiring myself to hold off at bull as well as ship possibilities, I fix myself for either.
No one--myself most included!--can eliminate bias altogether. The key is staying every bit grounded inwards markets every bit possible: listening to them, rather than talking at them.
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