Confirmation vs. Conviction

A common mistake is becoming convinced by a market idea before the market confirms it.

For example:

* A bullish chart pattern is not confirmation by itself.
* A bearish forecast is not confirmation by itself.

Confirmation usually comes from multiple pieces of evidence working together, such as trend, volume, and price acceptance.

Building a process around confirmation can help reduce emotional decisions and improve consistency over time.

Has waiting for confirmation ever kept you out of a bad trade? Share your experience.

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