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Some Random Thoughts on Subjectivity vs Objectivity
The market is an emotional creature.
Price movement occurs as a result of traders' buy and sell decisions. Trader decisions cannot be defined by fixed rules, and so price movement cannot be defined by fixed rules.
Attempting to define a market by fixed and objective rules will result in an approximation that will fail to represent reality at critical times.
The human mind excels in subconscious pattern recognition, and will develop its own feel for supply/demand interaction and likely future price direction.
The end result of trying to overlay objective rules upon market movement is mental conflict, as your subconscious analysis differs from that of your objective model.
Conflict in thought and emotion results in poor trade execution, poor trade management and sub-optimal results.
The answer is not in having a better and more objective model. You need to get comfortable with subjectivity. You need to trust your intuition.
You will most likely reject this idea. If so, take some time to consider why.
What are you afraid of?
Why do you demand objectivity in rules, when you know these rules do NOT define the market price action?
You may accept that objective rules cannot define market price action, but argue that they're close enough; that all you need are rules for the exceptions. That sounds reasonable, until you realise that the exceptions themselves change.
Embrace subjectivity. Learn to operate within the uncertainty that is the market.
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Of course, danger occurs when subjectivity is not based upon an open read of the market, but instead is based upon some preconceived bias. Success requires being in sync with the market flow. If you're biased towards a particular direction, and it opposes the actual market flow, your results for that session will likely be a dismal failure.
I guarantee, if you approach your market analysis with a preconceived and unchangeable bias, you'll find numerous trade opportunities and signals that support your bias, all of which look great at the time, but continually fail. Upon reflection post-session you'll clearly see that you were fighting the market the whole way.
If your results are not in accordance with expectations mid-session, it pays to exit the market and print a chart and determine whether your trades were taken in accordance with the flow, or whether you were actually fighting the dominant trend.
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You need to embrace subjectivity and feel the market.
Let the market action tell you where it's going. Don't try to tell it where to go.
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