This is what makes it hard - & why I think Lucy couldn't quite see Peter's meaning. What people consider a chase is certainly personal, which is hard to replicate: (i.e. for a trader that trades lows, his stoploss would have been 1.92 - seeing peter entering @ 2.0 he would have seen as a "chase", but Peter's edge must have seen it differently, & a good exit was higher, i.e. 2.0)
How to exit a trade (betangel video)
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ruthlessimon
- Posts: 2094
- Joined: Wed Mar 23, 2016 3:54 pm
I thought 'chase' meant running after something that's moving away from you, whether it's close or far away.
The important thing though, and Peter mentioned it in his psychology video, is to pause for a brief moment and give yourself time to think before a knee-jerk reaction to a change in the market. Easier said than done, but whenever I do it I find there may be a better trade elsewhere, even if it's in the next race.
Last edited by Derek27 on Wed Oct 18, 2017 12:52 am, edited 1 time in total.
It doesn't have to mean running after something that's running away from you. It could just mean running after something.
But isn't chasing part of trading?
The price is at 6. I put in a speculative order at 5, hoping it will drop. Is that chasing?
I laid at 3.0. The price is now at 2.0. Am I chasing the market if I close my trade for a loss? If it's risen to 4.0, am I chasing if I close for a profit?
The price has just broken upwards out of a range. Am I chasing if I place a lay?
The price has just reached an all time low, as happened in Peter's video that I posted a link to in this thread. Was Peter chasing by backing when that happened?
When a swing trader lays after the market has been steaming and shows signs of reversing, is that chasing?
And aren't we all chasing moves in the favour of our trend, all the time?
If something more specific is being referred to, it would be good to clarify that.
Jeff
But isn't chasing part of trading?
The price is at 6. I put in a speculative order at 5, hoping it will drop. Is that chasing?
I laid at 3.0. The price is now at 2.0. Am I chasing the market if I close my trade for a loss? If it's risen to 4.0, am I chasing if I close for a profit?
The price has just broken upwards out of a range. Am I chasing if I place a lay?
The price has just reached an all time low, as happened in Peter's video that I posted a link to in this thread. Was Peter chasing by backing when that happened?
When a swing trader lays after the market has been steaming and shows signs of reversing, is that chasing?
And aren't we all chasing moves in the favour of our trend, all the time?
If something more specific is being referred to, it would be good to clarify that.
Jeff
I don't mean to be petty, but if it's not moving away from you, you're not chasing it - you're moving towards it.
I don't think chasing has a precise meaning, but I consider it as persisting with trading a selection where your previous trade as gone against you.
Placing a back and lay bet and moving one or both isn't chasing the market, that's just trading. Matching them both and placing them again nearer to where the market has moved may be considered chasing.
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ShaunWhite
- Posts: 9731
- Joined: Sat Sep 03, 2016 3:42 am
'Chasing the market' / 'Chasing your loses'... surely the same context of 'chase' and implies a breakdown of logical thinking?
Trying to catch a move isn't 'chasing' in the context of this topic, so long as the fundamentals of what you're trying to achieve remain intact.
ateotd, I think there are probably two types of chasing, rational chasing (chasing the bus to get on while it's still moving) and irrational chasing (chasing it all the way to the depot).
Trying to catch a move isn't 'chasing' in the context of this topic, so long as the fundamentals of what you're trying to achieve remain intact.
ateotd, I think there are probably two types of chasing, rational chasing (chasing the bus to get on while it's still moving) and irrational chasing (chasing it all the way to the depot).
I think we can all agree that we all have different ideas of the meaning 'chasing the market'.
I don't think it's important to define what chasing is - it's just important to understand what somebody who uses the term is talking about, which only involves looking at it in the context of whatever is being said.
In Peter's video I think he was saying not to blindly follow (chase) where the money in the market is moving but to make more rational decisions as the market can quickly turn. But it could easily be used in a different context.
I don't think it's important to define what chasing is - it's just important to understand what somebody who uses the term is talking about, which only involves looking at it in the context of whatever is being said.
In Peter's video I think he was saying not to blindly follow (chase) where the money in the market is moving but to make more rational decisions as the market can quickly turn. But it could easily be used in a different context.