Noting that smaller cap stocks held upwards reasonably good belatedly final week together with seeing that nosotros had a prissy overnight bounce inwards stocks thank yous to the annunciation of the government's innovation to back upwards FNM together with FRE, I was leaning to the long side at the laid about of the day. I didn't bring an overnight order together with decided to permit the marketplace verbalize for itself i time trading commenced.
As yous tin sack come across from the distribution of the NYSE TICK above, sellers dominated from the outset. Many to a greater extent than stocks were transacting at their bid cost than at their offers. The blue, five-period moving average of the TICK (which is scaled at left) spent essentially the entire solar daytime below the zilch (pink) line. That is quite unusual. Just seeing that extreme distribution of real-time thought was plenty to continue me out of trouble. My hypothesis close the day's activity was wrong; seeing that quickly--and having the mental flexibility to admit it--was fundamental to the day's success.
Once we're inwards a large position, it is to a greater extent than hard to keep that mental flexibility. Part One, Part Two, Part Three
Attribution together with Bias Among Traders
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