Testing the Directionless Market

As you can see, the bull and bear have taken the place of the stand-alone bull meaning the "buy" signal has been replaced with the "no trade" signal. For practical purposes, I will just set the stop closer and see if we end the week on a higher note. In all likelyhood, a positive day on Friday will send the Cheetum Market Indicator back to the buy side. So instead of the getting whipsawed by a serrated sideways move, under-reacting to today's downward action will be this trader's choice of action.

Staying on the right side of the trade is the rule of the day.

Hey! Here's another opportunity to quote Jesse Livermore...

It is inseparable from human nature to HOPE and FEAR. In speculation, when the market goes against you, you hope every day will be the last day – and you lose more than you should had you not listened to hope. The successful trader has to fight these two deep-seated instincts. He has to reverse what you might call his natural impulses. It is absolutely wrong to gamble in stocks the way the average man does.

Instead of hoping he must fear; instead of fearing he must hope. He must fear that his loss may develop into a much bigger loss, and hope that his profit may become a big profit.