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Strategies & Market Trends : TA Science Projects & Experimental Indicators

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To: ftth who wrote (197)	6/14/1998 11:29:00 PM
From: ftth	Read Replies (1) of 237

[TA QUOTE OF THE DAY] The "Can't Wait Syndrome" "Another harmful form of overtrading relative to time is the Can't Wait Syndrome which occurs both in market entry and exit. Here again, accumulation and distribution do not occur every day or even every week in a form which is practical for most to act upon from a vantage point away from the floor. Impatience normally reigns supreme, and in the case of premature entry, a trader is habitually entering the market too early, finding himself anxiously waiting for his position to comeback to even money and or getting stopped out too often. Pre-mature entry may be caused by an entry method which is too broadly defined. For example in the case of long entry, it urges you to go long sometime between the last throes of the previous downthrust and the beginnings of the next upmove. The end of a downmove to the beginning of a tradable upmove is normally separated by some type of accumulation or telling price action. If your entry method is too broadly defined, you will have too great a latitude in deciding when to enter. Thus you probably will gravitate toward entering just as soon as you get an inkling of a reason just to end the tension created by the pending decision or even worse because you miss the tension and enthrallment of being in a position, or you fear missing opportunity or you seek quick revenge from the last loss(es). None of the above are good reasons to enter the market. Being habitually too early by not waiting for a clear indication to take action you lose hope and patience while caught in consolidations. Because tops and bottoms normally exceed expectations you are often stopped out before the move begins in earnest. These pre-mature trades by their very nature increase your overhead while disturbing your composure. The solution to this problem is to of course first discover and examine your transactions to ascertain if this habit does in fact exist (If you are not already aware of it). The further treatment of this problem lies in the recognition and study of the time factor in changing the trend from down to up or up to down. Large interests and professionals act after accumulational/distribution or price action itself establishes a potential reward which is a multiple of the defined risk. This potential is in an energy yet to be released requiring time or definitive price action to store. Seek to focus your energies on timing your entry to be more in harmony with the beginning of an upmove rather than in the ending of the last downmove." --Jesse Thompson

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