Two ways to look at price: either you think the crowd's wrong and you've spotted what they missed — that's fighting the tape — or you assume the market's right in the moment and just stay on its side. That's following the tape.
I'm in the second camp. Price is information. Trend is your friend until it's not. Fighting it usually just burns capital and ego. Better to ride what's working, set your invalidation, and flip when the setup actually changes.
Doesn't mean the market's always rational long-term. Just means short-term, it's bigger than you. Respect that.
I'm in the second camp. Price is information. Trend is your friend until it's not. Fighting it usually just burns capital and ego. Better to ride what's working, set your invalidation, and flip when the setup actually changes.
Doesn't mean the market's always rational long-term. Just means short-term, it's bigger than you. Respect that.