Why I’d Rather Enter Late Than Catch a Bull Trap

20 Aug 2026 · 1 min

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In this commentary, the speaker explains that waiting for stronger confirmation before entering a trade increases the probability that a market bottom has been reached, reducing the chance of falling into a bull‑trap. He describes how market makers can create false rallies that lure traders into long positions, only to reverse sharply, causing significant losses. While early entry can offer higher upside, the speaker argues that the associated risk is not worth it for him, preferring the lower‑risk, higher‑confidence approach of entering later once the market’s direction is clearer.

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You know what you do get as a result of waiting for more confirmation? That's right, you get way more higher probability that, okay, the bottom is in and you can have much more confidence in putting your money in. You're not gonna have as much of a headache. You're not gonna be getting into a false move just to watch the market dump by, you know, 50 or 80% over the next few months because the bear market was not truly over in terms of the macro perspective. And price is just like, yeah, guess what? This is just a bull trap, right? Trick everyone into thinking that the prices are going up and then bang. Put on a full-on reversal, everyone that goes long is now losing money, which is exactly what the market makers want. So yes, I stand to gain more if I were to enter early, but for me, that risk is not worth it.