In this episode, Brian Montes discusses the concept of front running in swing trading. Front running is buying into positions ahead of news-driven events or external sources to get ahead of the crowd and gain an edge. However, front-running is risky because it is based on assumptions rather than facts. Brian provides examples of front running in the stock market, such as anticipating the inflation report or earnings announcements. He emphasizes that front running is equal to guessing and reinforces bad behavior. Instead, swing traders should avoid front-running and let the market dictate their next steps.
Episode lessons:
Front running is the act of buying into positions ahead of news-driven events or external sources in an attempt to gain an edge.
Front running is risky because it is based on assumptions rather than facts.
Swing traders should avoid front-running and let the market dictate their next steps.
Front running reinforces bad behavior and can lead to larger losses.
It is important to have the mindset and mental awareness to avoid front-running and guessing in swing trading.
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