Monthly Archives: August 2015

Reviewing a 50 Tick Winner

 

I love getting feedback from people experiencing success with the YTC Price Action Trader method.

This one was awesome; from YTC reader Nathan:

Last night was a little tough but still positive…. but tonight I have just got a 50 ticker!! It’s been a little goal of mine for a while..

These 30m S/R levels are freakin awesome.. your simple approach to market analysis is great. Previous education covered so many S/R options and possibilities it wasn’t funny… scratched part 1 at +1 as it just wasn’t moving as quick as I wanted.

Pushed my target down further thinking it might break that S/R but I locked in 50 with the stop so I could cross that off my to-do list.  🙂

And on that note I’ll go to bed with an awesome trade.

Here's the image that was embedded with the email:

50 tick winner

While it's great to see people experience some success, even in the early days of their growth and development, there are two other reasons I absolutely love this sequence.

(1) It gives us the opportunity to review the trade and discuss my thoughts about trading before the regular pit session hours (that's when this trade occurred).

(2) It ties in beautifully with the idea I was planning on sharing this week in Motivation Hacks #2.

You can see point two addressed at this link here: http://yourtradingcoach.com/trader/trader-motivation-hacks-number-2/

For now, let's review the trade and discuss trading in the pre-session market.

For those not familiar with the futures environment, you'll notice on the following 60 minute chart that it comprises periods of clearly defined regular trading hours (RTH), which are essentially the pit-session hours. Trading occurs outside this time as well, via the extended / electronic trading hours (ETH). Note how the volume is significantly lower during this time period.

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Trader Motivation Hacks – Number Two

 

Maintain a list of milestones... and aggressively seek to achieve these new goals as often as possible.

In a recent article we discussed an email I received from a trader, Nathan, excited by the fact that he just got his first 50 tick winner… a goal he'd had set for quite a while.

See here if you missed it – http://yourtradingcoach.com/trading-process-and-strategy/reviewing-a-50-tick-winner/

50 tick winner

This was perfect timing for me, as it's a great example of "Trader Motivation Hack – Number 2", which was planned for release today.

This hack is simple… maintain a list of milestones… and aggressively seek to achieve these new goals as often as possible.

The secret:

  • Make them small.
  • Make them achievable.
  • But always make them stretch your levels of skill and knowledge, just beyond what you've achieved before.
  • And reward yourself when you get them.

Oh… and:

  • Keep them visible! Maybe put them on your wall. Those you've achieved remind you of the great progress you've made so far. And those you're yet to achieve will motivate you to push for the next reward.

So you've achieved a 50 tick winner? Nice work. Mark that one achieved. Reward yourself. And amend it to now seek a 60 tick winner.

Example milestone list

Of course, you'll need to customise your list of milestones to suit your own circumstances.

Make them all outcome focused if you prefer. Or process focused. Or a mix of the two. Whatever you find more motivating.

Pre-enter the rewards if you feel that will help you stretch yourself to make the target.

Customise it however you want.

But be sure to try it. It's simple. And it works surprisingly well as a motivation tool.

ACTION TASK:

  • This weekend… Set up your milestones list. Make the first entries simple and achievable, but just beyond what you've managed before. And think of some rewards that might help push you to achieve these milestones.

Happy trading,

Lance Beggs

Related Articles:


Are You Closer To Profitability Than You Thought?

 

If you've been trading for quite a while and seem to be stuck, consider the possibility that the next stage in your journey may not require further knowledge or skill development.

Instead, maybe it requires CUTTING POOR PRACTICE from your business?

Do you know what will happen if you cut areas of underperformance from your business? You'll be left only with areas of best performance. Areas of current best practice. Areas which you already manage well. Areas which, if enhanced even further, may be sufficient to transform your business and take your results to the next level.

Look within your stats and your journals. Find where you currently perform best. And focus exclusively on that area of your business.

Look within your stats and your journals. Find where you perform poorly. And cut it from your business. Implement procedures or controls to avoid it, or to mitigate the risk.

Do you struggle with a strong trend due to a tendency to always try to fade the trend? Stop promising yourself that "Damn it… Next time I'll just trade with-trend!" You know that you won't. If you could, you already would. You've promised yourself that you would do that too many times already. Focus instead on identifying those conditions in which you outperform… perhaps ranging action or slow and stable trends… and ONLY TRADE AT THESE TIMES. Develop rules for quick recognition of suitable trading conditions, and to alert you to those times when you should just walk away. Specialise in ranging market conditions. Or specialise in slow and stable trends. Whatever works best for you! But recognise and avoid the strong, fast trends if they're destroying your edge.

Do you struggle in choppy, sideways price action but outperform in directional markets? Identify structural features that suggest initiation of a new trend. Wait for these to develop… confirm the trending action… and engage the market. But otherwise, stand aside.

Do you underperform in volatile conditions? Measure market volatility and stand aside when it reaches these higher levels.

Do you underperform in markets suffering low levels of volatility? Again, measure market volatility and only trade at times when the market is moving.

Do you struggle in conditions of low liquidity? Stop trading markets or times which suffer from low liquidity.

Do you find yourself underperforming in slow and thick market conditions with high overlap between price bars? Then implement some method of identifying and trading only when price has some directional conviction and is flowing smoothly.

Do you struggle in timing tests of support or resistance, when price turns just before the level? Then forget about them. Cut them out of your business. Don't trade unless price breaks the level, focusing solely on breakout failures or breakout pullbacks.

Are pullback entries destroying your edge, when there is no structure to lean against? Then only trade a pullback when it moves into areas of prior structure (swing highs or lows). Or require that it develops it's own structure first before considering pullback entry. Only enter when you have some level to lean against.

Do you trade multiple strategies? Is one underperforming? Cut it. Focus on what is working best.

Do you trade one strategy across multiple timeframes? Perhaps a "daily chart" strategy alongside intraday swing trading? Is one destroying your profitability? Cut it. Focus on what is adding the most to your profitability.

Do you trade multiple markets and find that some only contribute breakeven results AT BEST. Cut them. Focus on those that you read the best.

Do you have a tendency to often give back profits during the afternoon? Stop trading at midday! Or set a session P&L trailing stop.

Are the opening sequences consistently putting you in a hole, requiring that you spend the next couple of hours fighting just to get P&L back into the green? Then stand aside at the open. Let the market create some structure first.

You don't have to do it all. Cut areas of underperformance. Or if not possible, then work to limit their impact.

And work to specialise in areas of your current strengths.

Is there one setup in which you perform the best? What could happen if you focused exclusively on that setup for the next few months?

Is there one type of environment in which you perform the best? What could happen if you focused exclusively on that environment for the next few months?

You may be thinking, "But won't this seriously limit the number of trades I take?"

So what!

Are you here for lots of trading action? Or are you here to become a trader?

Look within your stats and your journals.

Find where you perform best.

Cut the rest and FOCUS only on developing and enhancing that which you already do best.

You can always address the areas of poor performance later, if you choose to do so.

But right now it's time to end the mediocrity. It's time to fight to get to the next level.

Cut what's not working. And focus only on areas of current best practice.

Perhaps you are closer to profitability than you thought?

Happy trading,

Lance Beggs

 


Trade Opportunity Is Found Where Expectations Fail to Meet Reality

 

  1. Find a structural feature or price action sequence that will lead to "reasonable" expectation for a certain price outcome. For example, a REALLY obvious break of a pattern, level or trendline.

  2. Ask yourself, "But what if it doesn't?". What if price does not behave in the way expected by those who rely on standard TA methods? How will price look if the expectations should prove correct? How will price look if the expectations prove wrong? And will that provide trade opportunity?

  3. Why? Because trade opportunity is found where expectations fail to meet reality.

 

Let's look at a sequence I absolutely love, which made it into my Trades Journal last week.

It's Wednesday, 5th August 2015. But let's step back to the start of the session first to get some context. We'll begin with the daily chart, to give you a really "big picture" view.

Daily Chart - Context

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Build a Visual Library of MUST-TRADE Scenarios

 

We've spoken in NUMEROUS articles about the importance of using a journal to study key market structure and price action sequences, with the aim of developing your ability to perceive and understand the current strength or weakness of price movement and project that forward to develop a bias for the near future.

Here are some articles on this topic if you missed it all:

 

That's a quick list from the top of my head. But there are likely more if you want to search through the archives (http://yourtradingcoach.com/site-map/). Perhaps try the Tag List on the right hand side, or the search box at the top right.

Equally as important though is a Trades Journal, studying the best trade sequences of the day whether you took them or not, with the aim of developing your ability to perceive, understand and exploit trade opportunity when it presents in the markets.

I know… I ask a lot of you!

But I really believe it's of GREAT benefit to your trading business. Every trading session – one entry in your Market Structure / Price Action Journal. And one in your Trades Journal.

Trading is a skill-based & performance-based activity.

How do you develop skill?

How do you improve performance?

By studying best-practice! Whether you traded it or not!

What was the best trade opportunity of the session? If you did see it at the time, what did you do well and how could you do it even better? What did you do poorly and how could you improve next time? And if you didn't see it, what clues did the market provide that this was a Must-Trade scenario.

If you don't have a Trades Journal, get started today. Open up your charts to the prior session and find that day's Trade of the Day! Print it out. Study it. Cover it in notes. And file it.

Here's a few to get you started… all from last Friday's session… all of which I consider Must-Trade scenarios.

Click on the images to open larger copies in your browser! Or see the links below the images to download a copy to your computer!

trades journal - sample 1

 

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