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Strategies & Market Trends : TA Science Projects & Experimental Indicators -- Ignore unavailable to you. Want to Upgrade?

To: ftth who wrote (198)	6/15/1998 9:07:00 PM
From: ftth	Read Replies (1) \| Respond to of 237

[TA QUOTE OF THE DAY] A close relative of the "Can't Wait" Syndrome is the "Can't Stand Being Right" Syndrome: The "I can't stand being right" syndrome, or premature exit, is largely the same in character as premature entry. It is primarily manifested by the habit of entering a position then liquidating it as soon as it is slightly profitable. After getting out it seems that prices always seem to go higher (in the case of a long). This condition of premature exit is usually caused by the psychological need to take a profit to somewhat relieve the trauma of recent losses; or because once one has entered the position the tension of making the exit decision is so great that you exit just to relive this condition of anxiety. Like premature entry the solution to the above problem is of course to first recognize whether the problem exists, then if so, to focus greater attention on overcoming your weaknesses and understanding the characteristics of trend activity. Realize that in order to maximize your profits you must end this habit of premature exiting. Study how you can more carefully define and fine tune the trend you attempted to trade so that you can stay with it to its culmination. In the attempt to optimize the distance between entry and exit, you must optimize your understanding of what occurs at each stage of price activity. From the end of a downmove, through a period of accumulation and trend reversal, into the stage of mark up in prices, through the distribution process, and trend reversal then full circle into the markdown in prices. As in correcting premature entry you must better qualify your rules for exiting to maximize profits. --Jesse Thompson