Abnormal market movement
A market that move in one straight line without pull back, is this a normal market movement? Have you ever ask yourself this question when you are trading?
Many intra-day traders always get caught in such scenerio, the scared of missing out mentality has gotten them into trouble.
When market start to change direction from it's original wild move, most traders are still maintaining their view from the original movement that market has shown them and that is the part where they start to give back their intial gain. The worst scenerio that we have seen is of course giving back all the gain and go into losses.
We have a nice discussion in our last night Currency trading session on this particular topic and today China A50 has yet another similar case study.
Let's take a look at the video.