
Today was my first time tuning into one of Roland Wolf's living trading events and as a newbie, he was speaking gold. He made me realize a few things about my trading and one of which is the psychology behind breakouts. He is very much a believer in being a "contrarian". Quite frankly I've always gravitated to people that go against the grain of everyone else. Many people I admire and respect in the trading world, fitness realm, and business world have made innovations by going against the grain. Roland was talking about how breakouts never really work for him as it's really hard to buy at the top where all the strength is. A lot of the time that strength fades and what's left is a downside spiral in which money is wasted. I resonate a lot with what he is saying as my entries at times are terrible. I am either buying too high or buying at terrible technical levels. This idea of buying low and selling high is simple yet complex. He brought up how you should look at it from the perspective that you're shorting the stock. In other words, buy when shorts cover and sell when shorts are short. My biggest takeaway from all this is to learn the other side of the trading world. I have been so focused on learning the long side that I have failed to recognize how the short side thinks. Being a contrarian is the way to excel past the others in the mass crowd. Learning to think differently not only makes you smarter but will lead to more consistent profits.
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