NexusFi: Find Your Edge


Home Menu

 





Trading and the squirrel effect


Discussion in Traders Hideout

Updated
    1. trending_up 1,961 views
    2. thumb_up 2 thanks given
    3. group 0 followers
    1. forum 1 posts
    2. attach_file 2 attachments




 
Search this Thread

Trading and the squirrel effect

  #1 (permalink)
 Grantx 
Reading UK
Legendary no drama Llama
 
Experience: None
Posts: 1,787 since Oct 2016
Thanks Given: 2,826
Thanks Received: 5,059

Where I live we have a lot of squirrels.




Ive often wandered to myself why it is that these little critters jump out at the last moment in front of my car and make a mad dash to the other side of the road? I don’t believe its simply confirmation bias that I notice this, Im sure lots of squirrels cross the road when there are no cars around but how can I know for sure if I am not their to observe it? As far as I know, they only cross the road when cars approach.

So anyway, over the weekend after another near miss I started thinking:

1. Is it an initiation into the group? The closer squirrel gets to the tyres the greater his reputation amongst his peers?
2. Is it fight or flight? The squirrel is paralysed with fear until the last moment when flight response kicks in?
3. Are they thrill seekers. Do they wait on the edge of the road like junkies waiting for the next hit of adrenaline?

Personally I think that these little critters panic at the last moment. They see the vehicle as a predator. The vehicle is noisy, big, and its heading straight for them. Flight response kicks in and the bolt. Sometime this results in dead squirrel and other times lucky squirrel.

I suffer from the squirrel effect at times.

Lets say I have a plan to go long when price reaches a level.
So I draw a line at support (my safe place) which is some distance from price (the predator).
Price heads in my direction. Gathering momentum. Looking unstoppable. My prior fortitude starts crumbling. I get nervous. Price gets closer. I start panicking. My safety place is compromised. I become the squirrel. I bolt (go short instead of long).

Sometimes Im a lucky squirrel, but most times whenI dont stick to the plan Im a dead squirrel.


My take from this:
Don’t be a squirrel. Stick to the plan.

Visit my NexusFi Trade Journal Started this thread Reply With Quote
Thanked by:

Can you help answer these questions
from other members on NexusFi?
ZombieSqueeze
Platforms and Indicators
What broker to use for trading palladium futures
Commodities
Footprint for strategy Builder
NinjaTrader
MC PL editor upgrade
MultiCharts
Cheap historycal L1 data for stocks
Stocks and ETFs
 
Best Threads (Most Thanked)
in the last 7 days on NexusFi
Funded Trader platforms
41 thanks
Just another trading journal: PA, Wyckoff & Trends
22 thanks
Trading with Intuition
18 thanks
Self sabotage reframed
14 thanks
GFIs1 1 DAX trade per day journal
9 thanks




Last Updated on September 11, 2017


© 2024 NexusFi™, s.a., All Rights Reserved.
Av Ricardo J. Alfaro, Century Tower, Panama City, Panama, Ph: +507 833-9432 (Panama and Intl), +1 888-312-3001 (USA and Canada)
All information is for educational use only and is not investment advice. There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
About Us - Contact Us - Site Rules, Acceptable Use, and Terms and Conditions - Privacy Policy - Downloads - Top
no new posts