As follow up to my previous MOT post, we quickly see the my analysis was correct. The long term longs did not sell, the gamblers of news had to short cover, the other gamblers were rewarded, the technicians day traders, saw a trend line break form a pattern and also ran out and bought. Result a massive Psych play.
3 days later, reality set in, fundamentally nothing has changed, thus there were no more fools left to buy at higher prices, result market dropped.
As I said in previous posts leading up to BOJ and FED, we are seeing a lot of Psych plays and Fuckery price actions. The kinds of moves designed to destroy what Mike rightfully calls, “STOP LOSERS”! People who willing set themselves up to lose money. Why? Because it is a better alternative to those who guess and gamble from blowing themselves out of the water in one shot. Death by a 1000 paper cuts is death none the less. The average Joe sees a prolonged death as improvement over the instant death. Thus better and validates the belief that a stop loss is your best friend and an essential part of trading. Bullschitt!
Yes losses are a part of investing, no one is prefect. But not to set yourself up for it every time you place an investment. Understanding MOT, position size is very very important if you are to succeed in a zero sum game.
Author Jim Boukis