The following image was posted on YTC Social Media on Tuesday… and I think it makes such an important point that I want to expand upon it in today's article.
First… here's the image:
All trading conditions are NOT equal.
Sometimes the environment is well suited to your trading strategy, your style and your personality.
Other times it is clearly not suited.
What difference could it make to your results, if you were to start each session with a game plan. Something like this, for example:
As always, the game plan is subject to change during the session. But it's a useful starting place.
It will have you ready to engage the market without hesitation, should price move into areas with potential for ideal trading conditions.
And it will have you operating cautiously at all other times.
But how do you learn to identify these areas?
This is a good goal for your Market Structure & Price Action Journal!
What if you did this every day…
What if you added a short task to your session review procedure? Just a couple of minutes to review the higher timeframe and trading timeframe charts.
What if you identified the areas on the charts which provided ideal trading conditions? The price action with clear directional conviction, smooth flow and ideal pace (or whatever other conditions you prefer). Just the absolute BEST!
What if you studied the market structure, noting on the chart the features or conditions that led to creating this ideal environment. Typically these might be areas that spring an HTF trap, or areas of significant breakout.
What if you studied the price action, noting how to best exploit the trade opportunity to maximise profits while minimising any risk.
What if you printed the charts, along with your market structure and price action notes, and filed it into a ring binder or folder?
What if… after doing this for a year… you realised that you had a document with maybe a hundred or so examples of ideal trading conditions, along with notes on how to identify them, and how to exploit them once they're confirmed. (Yes there are well over 200 sessions a year, but not every session will provide an area of "ideal" trading conditions!)
What if you used this resource to document some rules-of-thumb for identifying potential areas of ideal conditions, allowing you to commence each session with a game plan just like the example listed above?
Would that perhaps be useful?
Let's look at another example using the same market as in the above image, but from the very next day.