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Friday, April 9, 2010

What is your Bias

Trading with a market bias can be profitable specially if the market moves your way.
On the other hand, having a strong bias can affect your trading decisions, as traders will defend their bias against the market movements.
Having a neutral bias is the position to be in, as you don't care which way the market will go.
Having no bias will allow you to follow the market signals with ease instead of being stubborn and try to fight the trend.
As the wisdom says:
"Don't ever let your bias on the stock market take over your trading, always follow the tape"

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