2. If a bull or bear is on the cover of a major national magazine that market is very close to ending.
3. If you are on the side of the vast majority of traders and people against you are vilified then the trend is almost over.
4. If you have made a substantial amount of money but your winning trade makes you start dreaming of what big purchase you can make with the next move in your favor you are in trouble.
5. When the traders around you start talking about a new paradigm and why this trade just can’t lose, watch out!
6. When new traders enter your trade and make quick and easy money then scoff at “risk management” because it is not needed the end is getting closer.
7. The day your trade gaps up in your favor and moves twice its average daily range on twice the normal volume time is ticking away and the reversal is much closer.
8. When all the talking heads on financial television start throwing out huge numbers and agreeing that your trade will go up another 50% that is a time to prepare for the exits.
9. When a close family member that does not trade or invest calls you out of the blue to ask you about whether they should buy into your trade that is when there are no more buyers left.
10. When your trade reverses and as it falls everyone thinks it is just a better value now and buys the falling knife that is likely the end. When everyone thinks that the lower it goes the better it looks common sense has left the trade only fools are left to rush in.