At times it's all too easy to get caught up in the complexity of this business and the frustration that comes from trying to extract profits from the uncertainty of market action.
It can help, during these times, to step back a little and choose to view the game in a simpler way. Of course this doesn't make it easier to catch the elusive profits; but I find it can help to reduce the overwhelming feelings that do nothing but take you further from your ideal trading state.
There are many ways to view the game in a simpler light. My favourites are those based upon analogy in which we compare the trading challenge with another more familiar activity.
We touched on one of these in the past when comparing trading with a boxing match, trading jabs back and forth, defending our body as we wait for an opening for the knockout punch. http://yourtradingcoach.com/trading-process-and-strategy/trading-is-a-fight/
I've heard of others who view the games in terms of fishing… identifying the prime fishing spot (trade area) in the river (the market flow) and sitting waiting patiently for the fish to bite (right movement into the area).
One I particularly like though is surfing. We view market action simply as waves; the peaks and troughs of the price movement corresponding to the peaks and troughs of the waves.
Our job, is to simply surf the waves.
Watch the price flow. If the waves are clearly defined and regular and we feel nicely in sync with the wave action, then we aim to surf those waves either from peak to trough or from trough to peak.
But if the the ocean is flat or the surf is all choppy and dangerous and we just can't get a good feel for how it's moving, we sit back on the beach and just wait. Perhaps better conditions will come along later.
Last Friday I was getting tired towards the end of the week (not unusual given the crap timezone I choose to live in!). Plus it was the first day I was transitioning back to "primarily CL" having spent a few months looking mostly at the emini's. Given these two factors I dropped back to a single contract, one part all-in, all-out, and just had some fun. I set out to just get in sync with the waves and then just surf that action from peak to trough and back again. I loved it. I seriously should do this more often! 🙂
The results turned out quite nice, but then perhaps I was lucky that the session just happened to provide some periods of clearly defined wave action.
Point being though… if you're getting yourself so overwhelmed all the time with just trying to work out what the trend and bias are… consider trying something like this. Just relax into the market action. Forget about trend definitions and just try to feel the waves. If you get in sync with them, try to surf them (make some trades). If you're not feeling the flow, just stand aside.
Anyway, let's look at some of the surfing action.
We'll start with my favourite sequence of the session where it was easiest to feel the flow.
Of course, you're not always in perfect sync with the waves.
Sometimes they're there and you can feel them coming, but you just can't catch them.