Mental Mistakes

Made some silly mistakes today from breaking 2 of my rules:

Rule # 1 Follow the trend
Rule # 2 Don't short if uptrend is intact and price is above VWAP
Rule # 3 Don't assume or question the price action. Don't have biases.

I broke all of them and the only thing that saved my ass was my concrete stop loss. I had kept losses small and was able to break even on the day. However it is inexcusable that I break those rules.

My mind wondered for potential short setups to fade the up moves, rather than focusing on where the money was leaning towards. In other words, I was fighting the big money. The big money was making an uptrend and it's never a good idea to try to outsmart the trend! It doesn't matter if there are so many resistance levels ahead, it doesn't matter if you are skeptical about the up move, it doesn't matter if there's still fear in the market. Heck, just follow the damn trend you idiot! If the market wants to reverse, it will show you the right patterns. It will guide you and open its doors for you to go short. No such indications were hinted today. No topping patterns, price stayed above VWAP throughout most of the session. Price consolidated the gains during noon time - no reversal patterns. I guess I was focusing too much on the micro timeframes and not leaning an eye on the bigger picture. All I had tried to do was to look for next resistance area to short into, while the market consolidated and made a new high.

A trendline, once broken doesn't necessarily mean it'll go down. This is especially true when price is above the vwap, meaning there's a bid to support price.