Trading Momentum
This video is a discussion on dropping your associated bias and instead simply trading in the direction the market is showing the momentum to be on.
Why Trading Bias Is a Problem
Traders often label themselves as bullish or bearish, leading to rigid thinking.
Social media (e.g., Twitter) reinforces these biases - don’t let it influence your trades.
Example: I posted a bearish outlook on Twitter but was actually taking some long trades.
Momentum Is What Truly Matters
Profitable trades depend on momentum, not personal bias.
How to recognize momentum and align trades accordingly.
Following momentum leads to easier trades and better returns.
How to Identify Market Momentum
Use technical indicators to confirm momentum shifts.
Recognizing momentum shift signals for better entries.
Common Trading Mistakes
Fighting Momentum
Shorting a strong uptrend leads to unnecessary losses.
Instead of asking "Where should I short?", focus on "Where is the market heading?".
Key Takeaways & Final Advice
Drop the bull/bear mindset - momentum is all that matters.
Use AO (Awesome Oscillator) & RSI to track shifts in momentum.
Don’t counter-trade strong trends - wait for clear reversal signals.
Follow momentum instead of fighting it.
Momentum trading simplifies decision-making - stop overcomplicating it.