"it seems most of us on this threads feel the market will drop and is overpriced."
I may have a strategy going forward to capture a down move, but the trend has been UP, so you always have to trade what you see, and do not go against the primary trend of the market, regardless of what people like myself do.
The US market is overpriced on a pe basis, but we must wait for evidence of a trend reversal to go short.
"The problem is shorting the market is a slow burn and I am currently down $95 000 (on CFD - my longs AWE and Bear buy sell have covered some losses) since April 2013. prob ave $ 40 000 down. Getting despondent!"
What I am about to say is coming from good intentions, so please try not to get offended.
If you are feeling despondent, you should either stop trading for a short period, or at least significantly scale it down, you need to be neutral, rational, objective and controlled.
You don't always have to be in the market if conditions don't suit you. Are you a natural bull or bear in terms of your trading style. Very few people are completely comfortable going long and short, most have a bias, so if you have a natural bias for long trading, just look for long opportunities and vice versa.
It sounds like you are chasing profits to make up for a loss, and this can lead to "revenge trading" which clouds judgement, increases trade outcome pressure and interferes with objective trading.
Trading in the Zone by Mark Douglas is an excellent book that I recommend if you have not already read it, it is quite old but talks mostly about the psychological aspect of trading.
