Market is giving sell signal, but I am going to go contra. Is it a good idea?

Even experienced professionals with advanced tools are not able to predict market movements. The best of traders don’t catch bottoms and tops too precisely. They can, at best estimate the broad levels. There are times when all technical factors depict a bull market; however, there may still be a decline. These factors are only indicative and do not provide any guarantees. There are times you will be right and there are times you will be wrong. That is part of the game. If the market moves against your expectations, it is important to exit your position to avoid huge losses.

The point is that you do not have control over the market. You can only rework your strategy based on the market. It is, therefore, very important to understand the signals that the market is sending out to you. The market always has a story to tell and the market is always right. There is no point in saying that, “I did the right thing but the markets became too volatile.” Start with the assumption market is always is right and plan your trades accordingly. When you go contra on the market, you are basically trying to be smarter than the market. As an intraday trader you have limitations of time, funds and bandwidth. Use them most productively. Spend your time trying to understand the signals that the market is giving out and put your trades accordingly.