To Think or not to Think

While the title may cause some confustion, it is chosen on purpose. Trading is an endeavor that requires an appropiate set of thinking. And here we are. "I think therefore I am" (Rene Descartes).

Going through my old posts, I decided to highlight how important psychology is.
I did start this Blog in June. My first post was made June 1 2016. That was a wednesday. At the end of the week I made my first post for the section "Setups for the week ahead". You can find it here.

If you scroll down to the very last chart you will find the chart below



At that time I did identify a clear cut bearish signal right on top of support. You might be asking yourselves now what my point is. We never know what the market is going to do next. Some may think "Price did move a lot and is due for a pullback". Or "Now is the time for the market to reverse" and they start thinking they can outsmart the market, because the market has to reverse. But if we fall into that thinking, we are prone to start trading what we think.

Do not trade what you think. Trade what you see!!!

The market can go much further than we could imagine. See below!



Now some may argue that price was due to move south because of BREXIT. Well, that my be true. But at the time of the analyis the majority was sure that there will be no BREXIT. My point is, after the facts, everybody knows why price moved the way it moved. But we as traders are not interested in why. But we are interested in what is currently happening. That was a 3.000 Pips move.

Trade what you see, not what you think!

Happy Trading,
TT