Monthly Archives: May 2013

Pullback Specialist

There's no greater source of motivation for me (and hopefully for you as well) as seeing someone achieve great progress along their journey to becoming a trader. Well done, Bijan! Excellent work!

Reader Email:

Hi Lance,

A while back I was thinking to my self that the people that make the most money are the one's that specialize in their profession whether it's a doctor, lawyer, dentist, or any other career. So I decided instead of being a jack of all trades, to actually specialize in PB / CPB setups.

This has forced me to look deeper into the nuances of every pullback setup. This deeper analysis has proved to me that its not about the setup, rather its about reading the thought process of other traders. Reading about this in your newsletters and especially in YTC Price Action Trader is fantastic, but to actually follow your advice and do this LIVE bar by bar in real time has been the key factor for me.

Although I continue to trade TST & BOF setups, I love being a specialist in PB & CPB setup.

Just in case you'd like to see my thought process, I've sent you a few of my recent trades as examples.

Btw, these charts are all from stock symbol "SPY" 3min, 1min, & sometimes 1min, 30 seconds time frames.

Cheers

Bijan.

Chart Images: (NB. Click on the images to open a larger copy in your browser)

pullback specialist

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Trading with the Right Expectations

One of the most common themes I see in emails is a tendency for traders to focus too much on the individual trade.

Every day… "I can't believe this trade lost. Can you tell me what I did wrong?"

Never do I get the following… "Looking at my longer term stats as they relate to my last 20 trades, I see my win:loss size ratio down quite a bit compared to the average across all samples of 20 trades. I have assessed the following probable causes and solutions. I'd love to know your thoughts!"

This is not a game of individual trades.

This is a game of longer term results.

We've touched on this theme a little in recent weeks.

But the emails continue… so let's examine the idea one more time in a slightly different way.

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Longer Timeframe Trap

This example comes courtesy of some email Q&A, from a reader of theYTC Price Action Trader.

(Yes… the YTC Price Action Trader principles and strategy can be applied on longer timeframes than those I trade!)

Email:

Hi Lance,

Check out this really cool trap on usd/cad.

If you zoom out on dailies the situations is exactly the same as what I sent you about a week ago or so on usd/jpy…strong leg up and weaker pullback on higher tfs…then usd rallied up.

I was expecting same thing to happen on usd/cad and it did today..

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