The feeling that the market often moves against your trade right after entry is a common experience among traders and can be attributed to several factors.
Now let’s see, Why the market going against trade as soon as made an entry:
1. Market Noise:
Short-term price fluctuations can appear random and are often due to noise rather than any fundamental shift.
These movements can create the impression that the market is moving against your trade immediately after entry.
2. Entry Timing:
Poor timing in entering trades can result in entering at points where the price is more likely to reverse.
This can happen if you are chasing the market or entering based on lagging indicators.
3. Stop Orders:
If you place stop-loss orders too close to your entry point, normal market fluctuations can trigger them causing an early exit from your trade and reinforcing the perception that the market turns against you.
4. Psychological Factors:
Cognitive biases such as confirmation bias and loss aversion can make losses or adverse movements feel more significant than they are.
This can make it seem like the market moves against you more often than it does.
5. Market Manipulation:
In some cases market manipulation by larger players can create short-term price movements designed to trigger stop-loss orders from retail traders, although this is less common in highly liquid markets.
6. Lack of Trading Plan:
Without a well-defined trading plan that includes proper risk management and entry/exit strategies, trades can be more susceptible to adverse movements.
Thank You.