I listened to a short interview sent to me via email by a trading friend that was on CNBC. Let me add in here, I don’t watch CNBC and I don’t listen to any news before or during my trading day. I am a firm believer in following price and specific price patterns that form as a result of bulls and bears trying to come to some form of agreement.

In this interview the moderators and the guest were going round and round trying to come to some type of agreement on the condition of the current market, bull or bear. One said he could find a strong argument for both. Hmmmmm, it made me think of a quote from Jesse Livermore that stays with me and made a large impact on me the first time I heard it; “There is neither a bull side nor a bear side - but only the right side.”

In other words, if you get locked into a strong opinion trading you may not see the forest through the trees, or for that matter the bulls or the bears in the forest. My best advice to traders is, stay focused on what price is telling you and always keep an open mind.

In the next blog article I’ll talk about the all important Support and Resistance and how this can help you to stay focused and keep an open mind.

This entry was posted on Thursday, August 27th, 2009 at 7:56 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.