What this “reverse reading” taught me is to be more careful with entry and exit points. I was determined to get max profit possible with min loss. I took it seriously and did not play a game.
I only used 20,50,100 and 200 MA, MCD and RSI as indicators.
I had recently fallen in to costly bad habits on live account and the only way for me to break it is to trade on demo account for a while. Go back to basics and practise what one have learned.
I just found it strange (for me) that in live trading I would let some positions go in to negative territory and I would have to wait until they (hopefully) go positive again. That gets me worked up and can I get worked up then!! But with the “reverse phycology” trading I would close a position almost immediately if it goes a few points against me and open another position in the right direction.
This seems to have worked as I had many small losses but the gains were bigger.
I learned if I have any doubts about opening a position then I would not enter a trade. Have nothing to lose. Risk VS Reward. This saved me a lot. There is always the next time frame..
Anton Kreil said something like: “See/read/note what the market is doing but don’t try and be too much ahead of the market. If you do you will find yourself ahead of yourself and the market and that is a dangerous position to be in”.
With manual trading I won’t take as big draw downs as with auto-trading. With auto-trading you need a bigger balance and nerves to handle the draw downs.
