"In this era of disruption, the mother of disruption stories is the BlackBerry story. A company that introduced the BlackBerry in 1998 became a $20 billion company from nothing in less than a decade. Then four or five years later, it was back down to a $3 billion company, gasping for breath."
As they say, history repeats itself. We've seen a lot of stocks and even currency pairs gone through the same exact cycle. Humans act, react and overact in similar ways to certain situations which are repeated over and over again.
This is why technical analysis exists today. As we all understand, emotions are our biggest enemy in trading. This is why you must recognize the enemy and take action to avoid it.
Anytime you recognize emotions influencing your trade actions, you should always take a step back and refocus your attention on price action. This is the main reason why I'm a profitable trader today!
Finally, an understanding of the crowd psychology can help you gain an emotional advantage over traders who thinks only of their own actions.
*This methodology applies to weekly, daily or even a 4-hour chart.
This isnt a "new" idea, its been around for a looong time
abdullatrader
⋅
@AmmenLee, What I meant by a "new idea" is a "new post". That's the terminology that Trading View uses for any new published idea :)!
simbha
⋅
what is next? Does it look like the general psychology of any tragic event followed by 7 stages of human behavior? Does the cycle repeat by itself ?
Nice to go through post mortem.
tangkp
⋅
Wise words
HudaAli
⋅
I agree with you, but it is easy to say, hard to do! ^^
I liked "This is the main reason why I'm a profitable trader today!". It would be great and beneficial to us "newbies" if you make a webinar or a YouTube video to talk about your success, beginnings, what mistakes you did, what hardships you faced, and how you could tackle 'em. We really need to learn from other's experiences!
abdullatrader
⋅
@HudaAli, Thank you Huda for your kind comment. I agree, theory is always easy to explain and learn however as soon as you open your trading platform everything seems different. I'm preparing some great content that I will be able to share with everyone soon :)!
This isnt a "new" idea, its been around for a looong time