BULLS VS. BEARS: Who Is The Winner?
All over tradingview you find people trying to pick the outcome of a trade. Is it going to go up or is it going to go down?
It is awesome! It gives us the power to see so many different ideas from so many different traders around the world. Here is the issue: It is very easy to skew a chart to look bullish/bearish. If you move a few lines around or look at a chart from different angles, your outcome of the situation completely changes.
That is why I try and look at opportunities pre-buy instead of post-buy. Let me explain...
(Slight disclaimer: I am not saying it is bad to be a post-buy person, I do it all the time. I just think a lot of people make a buying decision without looking at both sides of the story)
Most people see a trade and they immediately buy into it. I consider these people "post-buy". They are buying because the signs show that it should go in a certain direction. The issue with this is often times the movement can go in any direction. Whales are driving the price up or down despite what technicals say and often times they move the price to screw the novice trader over.
Looking at the chart above, a post-buy person is going to say: "Oh shoot! Look at the positive EMA, the wedge that is forming, and the low RSI! The price much be ready to bounce!" Then the person goes and buys at the current price that it is at.
Here is the issue...This person leaves themselves completely vulnerable to the market. They are not going to realize their outcome until after they have bought (hence post-buy).
On the flip side, there are the pre-buy traders that look at their outcomes before they buy. This person is going to say:
"How is this bullish? How is this bearish? Which has a higher probability of happening"
but even more than that they are going to look at when to buy in. They are patient and know when everyone else will bite. They are going to understand that a breakout here will most likely push the price in that positive direction and that will cause a continued breakout (not a guarantee but a likely scenario).
With all of that in mind, the pre-buy trader would put a buy order above the breakout levels instead of immediately buying. They would also know where to put their stop loss levels because they thought about it beforehand.
Why does any of this matter?
The post-buy trader is trying to predict and the pre-buy trader is reacting to a confirmation. The pre-buy trader is not completely vulnerable to the market because they are working with the buying power instead of trying to predict it.
Now don't get me wrong, sometimes the pre-buy trader is going to get screwed. The price will trigger their order on a bounce and then it falls. The thing is, the pre-buy trader took all of this into account before placing the order. Get specific about your trades and you will become that much better.
Let's be real with ourselves. We are not geniuses. We are a bunch of people trying to make a money in a wild trading game. My job is to help you learn how to work with the guys on top instead of getting outsmarted by them. The other articles below will also help you with this. I am here to help and feel free to comment below if you have any questions.
It is awesome! It gives us the power to see so many different ideas from so many different traders around the world. Here is the issue: It is very easy to skew a chart to look bullish/bearish. If you move a few lines around or look at a chart from different angles, your outcome of the situation completely changes.
That is why I try and look at opportunities pre-buy instead of post-buy. Let me explain...
(Slight disclaimer: I am not saying it is bad to be a post-buy person, I do it all the time. I just think a lot of people make a buying decision without looking at both sides of the story)
Most people see a trade and they immediately buy into it. I consider these people "post-buy". They are buying because the signs show that it should go in a certain direction. The issue with this is often times the movement can go in any direction. Whales are driving the price up or down despite what technicals say and often times they move the price to screw the novice trader over.
Looking at the chart above, a post-buy person is going to say: "Oh shoot! Look at the positive EMA, the wedge that is forming, and the low RSI! The price much be ready to bounce!" Then the person goes and buys at the current price that it is at.
Here is the issue...This person leaves themselves completely vulnerable to the market. They are not going to realize their outcome until after they have bought (hence post-buy).
On the flip side, there are the pre-buy traders that look at their outcomes before they buy. This person is going to say:
"How is this bullish? How is this bearish? Which has a higher probability of happening"
but even more than that they are going to look at when to buy in. They are patient and know when everyone else will bite. They are going to understand that a breakout here will most likely push the price in that positive direction and that will cause a continued breakout (not a guarantee but a likely scenario).
With all of that in mind, the pre-buy trader would put a buy order above the breakout levels instead of immediately buying. They would also know where to put their stop loss levels because they thought about it beforehand.
Why does any of this matter?
The post-buy trader is trying to predict and the pre-buy trader is reacting to a confirmation. The pre-buy trader is not completely vulnerable to the market because they are working with the buying power instead of trying to predict it.
Now don't get me wrong, sometimes the pre-buy trader is going to get screwed. The price will trigger their order on a bounce and then it falls. The thing is, the pre-buy trader took all of this into account before placing the order. Get specific about your trades and you will become that much better.
Let's be real with ourselves. We are not geniuses. We are a bunch of people trying to make a money in a wild trading game. My job is to help you learn how to work with the guys on top instead of getting outsmarted by them. The other articles below will also help you with this. I am here to help and feel free to comment below if you have any questions.
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