You have good points on this and number two points is very true. We seem to want the market to do what we want and not what the market is exactly doing and most times we jump in as we expect the market to start reacting the way we want. This is a common phenomenon with newbies because of being eager for profit. Being in a haste is the greatest undoing of traders, if you jump in early at the time the market is not in the direction of your order then the only thing that will happen is you get burnt. If you put your hands in a furnace, you won't be spared because the fire is only doing its own business of burning and that is exactly how it happens with entering wrongly. Every trading day is different though and we have to follow what is happening in the market not what we want to happen in expectation.