2. Make sure that one has a reference point while trading and to make it simple we can say that reference point is one at which you might decide you are wrong and get out depending on what action is seen at that point. This is particularly true if you are seeking to short a rally, or go long into a decline wait to see some from of reversal before going in, or use a previous reference point (even then it is better to wait for a reversal).
3. Make sure that one stays with positions unless one sees something which definitely changes your position. Follow these facts:
4. Make sure that a short-term signal does not negate a longer term one and to take action on such is absurd.
5. At times one may find that short-term signal in the first place is probably just an illusion. Even if some sort of reversal does come in it will not often challenge the longer term signal.
6. Get over the fear to get out of the maarket aand before getting out do undertake a confirmation for the same.
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