Conviction of yourselve

On the market and general sentiments toward the market, let me simply quote following link:

 

http://www.marketwatch.com/news/story/bulls-trying-turn-technical-corner/story.aspx?guid=%7BEE0631BD%2DB321%2D46F1%2D9A77%2D4F445FDED091%7D

 

I think the author is absolutely right that 1). The market is bordering the resistance level. 2). the general sentiment is very reactive (to the earning news).

 

Personally, I believe, with today’s backtrack, we are back in the trading range again.

 

On the keep a journal of the trading, I am quoting following link

 

http://traderfeed.blogspot.com/2008/04/few-trading-psychology-observations.html

 

Many people do not bother to look at the big pictures, they probably do not think that will help for the specific stock they are trading, however, one thing they fail to realize is that certain strategies can only work under certain market conditions.   For example, “breakout” works most effective in an up trend. In the down trend, there will be more “breakdowns”.   As matter of fact, the first thing a trader should ask is “where is the market” in order to trade successfully.

 

If you really want to find a culprit for today’s down fail. I believe there are 3 reasons.  1). Earnings from TXN, outlook from DD cause the reactive selling. 2). the higher oil price/lower dollar. 3). the profit taking

 

Tomorrow, we will have the oil inventory number, if the inventory is lower than expected, we will have the same trouble again.

 

Finally, one has to have a conviction of oneself.   And following is an example