Just an observation of my own psychology trading Nick’s ASX Growth Portfolio.
My default mindset has always been to get long off support, after a deep pullback to ‘value’, so trading a pure trend following system has been somewhat of a new experience for me, and buying new highs would have created a lot of tension in days gone by. However, trusting a system that has been tested and understanding the likely metrics has enabled me to pull the trigger which has been very profitable these past 9 months. I guess its good to be on the right side f the market and if the system was in drawdown I’d no doubt be less motivated to share my thoughts, but I guess the point is, I’m much more comfortable actually buying a stock after a strong rally, regardless of the fundamentals. ELD is a good example.
