Waiting for market confirmation before entering a trade reduces the risk of a bull trap, even if it means missing some gains. Early entries can trigger huge losses when an uptrend reverses, which benefits market makers. A later, more confident entry beats the bigger potential reward of jumping in too soon.
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.
