Fake reversals happens all the time, but again, sometimes I find it wrong to actually attach the fake term to the reversal. Okay. Because sometimes a rev reversal doesn’t happens or the reversal turns back down again. It doesn’t mean that the market is trying to fake you or the thing is fake. It just means that maybe the market is not ready. Alright. So sometimes the kind of words that you attach to a certain phenomenon or a certain observation that you see can drastically affect your psychology in terms of how you think about that movement. Okay.
So that’s the reason why I personally, I do like to use the word ‘fake’ because there’s no truth in the market at all. Okay. And I think there’s nothing such as true or fake in market movements or in a change of trends. Okay. It’s always about a probability of a change.
Okay. If you see a higher probability and it doesn’t work out, it doesn’t mean it’s fake. Okay. It could be that you are too early or the market is not ready, whatever case, as long as you know how to manage a stop loss, you know exactly how you plan to take your profit. And that is really the most important thing and let the market hypothesis work itself out. So you can only try to anticipate probability, take a small bet and let the market tells you whether the market wants to give it to you or the market don’t want you to have it.
Interested to receive mentorship opportunities like this with Philip?
Find out more at traderwave.com/tv
- The True Nature About Trading The Financial Markets - August 4, 2020
- Are Fake Breakouts and Reversals Really Fake? - August 1, 2020
- Technical Analysis Is Used To Study Probability And Not Certainty - July 30, 2020