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Old 11-20-2006, 05:16 PM
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Re: How much analysis is required as a trader?

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Hello,

I would like to explain my current problem. I have been trading the ER2 for a few months. One problem I have is the conflict between market analysis and trading with the flow.

I do setup my charts on different timeframes to analyze market direction. However, do traders approach the trading day with a certain bias? I find bias conflicts with the current activity or flow of the markets. At the same time I feel like market analysis is a necessity. How do you guys overcome this?

Pierre
Pierre,

Have you ever read "The Disiplined Trader" or "Trading In The Zone" by Mark Douglas?

Those books helped me tremendously with having a bias formed by my analysis and not being able to get in the "flow". I am on my 6 or 7th read for both and always take something new out of them.

I typically approach each market day with the intent not to trade. I'll have to be convinced by price action that a bullish or bearish bias had entered the markets before I put on a trade. I guess that is why I click so well with pivots and breakouts and feel comfortable trading with them.

I believe that analysis is healthy and can offer a heads up and give you a good feel for who's in the markets, but anything beyond that starts to distort things open up an opportunity for you to think that you are right and the market is wrong while you are trading.

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