Monthly Archives: September 2019

Because Sometimes you want to Smash the Damn Keyboard!

 

Yes, sometimes you do want to smash the damn keyboard!

But while it might feel good for a short while, that kind of mindset does little to help your trading.

So let's talk mindset. And specifically, one little tip that can help you quickly get back in the right frame of mind. Focused and ready to trade again.

Let's start with a higher timeframe 30 minute chart to get some bigger picture context…

<image: Overcoming frustration and quickly regaining focus>

So now let's drop to the Trading Timeframe (1 minute chart)…

<image: Overcoming frustration and quickly regaining focus>

<image: Overcoming frustration and quickly regaining focus>

Reference: The YTC Price Action Trader Principles of Future Trend Direction – Vol 2, Ch 3, Section 3.3.3, Page 145-153

<image: Overcoming frustration and quickly regaining focus>

<image: Overcoming frustration and quickly regaining focus>

<image: Overcoming frustration and quickly regaining focus>

<image: Overcoming frustration and quickly regaining focus>

<image: Overcoming frustration and quickly regaining focus>

<image: Overcoming frustration and quickly regaining focus>

You know those times when you just KNOW that you should exit… you just KNOW that the edge is gone… and you ignore it!

They never seem to work, do they!

Ok… I'm not at the "MUST SMASH KEYBOARD" stage.

I've played this game long enough that individual trade results don't worry me.

But I'm no robot. There is still frustration.

Not at the trade. But rather at my pre-session decision of "Hey, you know what I should do. I should work on holding trades longer. I think I've been cutting them too short too often lately!"

Really?

What is with that?

Changes in process are NOT made like this.

I have no doubt that my trade management is somewhat shifting in recent years to shorter holds and more of a "get out, get back in " style. But if I'm doubting that this is the most suitable approach, then any decision to shift back needs to be more than a simple pre-session decision.

It needs planning.

  • Do the stats confirm that a more passive style would provide greater edge? Or not?
  • Under what circumstances should I blindly hold till the target, regardless of any feelings that the edge is gone?
  • And when should I instead trust my intuition and get out?
  • Can I possibly "live test" both options, for comparison purposes over a month or two? Normal trading on NQ, but simultaneously trading on the micro MNQ contracts with a longer hold. Run both in parallel, as best I can, to compare performance over a period of time.

 

So while I'm not quite at the smashing keyboard stage, I am feeling frustrated.

And I promised you a tip on how to quickly get rid of that frustration and return to a more effective mindset.

Here's something I've been using for a little while. And quite liking.

(1) Allow yourself permission to be frustrated. Big time! Let it all out.

(2) But ONLY for the next trading-timeframe candle.

(3) Then it's game on. Back to the charts.

I want you to exaggerate step one. Vent. Curse. Yell. Shout. Let it all out.

But only for the next trading-timeframe candle.

Then it's game on. Back to the charts.

Give it a try. It's actually kind of fun. And perhaps that's why it's effective.

The quality of your upcoming trade decisions depends (to some degree) on the quality of your mindset. Frustration won't help. So let that frustration out. And then get your mind back on the job.

<image: Overcoming frustration and quickly regaining focus>

Happy trading,

Lance Beggs

 


 

Daily Market Structure & Price Action Study – 8

 

See here if you missed the earlier articles – No. 1, No. 2, No. 3, No. 4, No. 5, No. 6, No. 7

The concept:

I've been writing online for over a decade now. And for that whole time I've been promoting the idea of daily study in both Market Structure and Price Action.

It's a simple task that takes no more than five minutes, but which offers incredible value to your own learning and development.

Sometimes this study fits within certain themes, if there is a particular feature of market structure which I want to focus on for a period of time.

Often though, it's completely unstructured. Simply searching for whatever captures my attention.

Either way, every trading day after the session is over, I look to the charts to find something interesting. Having done this for so long the findings are usually just reinforcing prior lessons. But occasionally, they'll uncover something new which can lead to further exploration, further learning and further growth and development.

The following are examples of entries in my Market Structure & Price Action Journal; although tidied up and expanded upon slightly to work in newsletter article & blog format. (The real journal rarely needs more than one image and a small handful of notes.)

I hope you find it useful. If you do, consider starting your own Market Structure & Price Action Journal.

 

Wednesday, 14th August 2019

We had a day today which trended lower throughout, although never with any great bearish strength. One which just grinded it's way lower. And one which at times "tempted" entry LONG to catch the reversal.

So I thought I should use my MSPA study to find a few "bigger picture" structural signs which should have had me positioned with bearish sentiment throughout the day.

Let's begin with the prior day, Tuesday 13th August 2019.

<image: Daily Market Structure and Price Action Study>

FTC Reference – YTC Price Action Trader Vol 2, Ch 3, P 143

<image: Daily Market Structure and Price Action Study>

<image: Daily Market Structure and Price Action Study>

<image: Daily Market Structure and Price Action Study>

<image: Daily Market Structure and Price Action Study>

Lessons:

  • When the market provides multiple reasons to favour one direction over another, prior to and leading into the session open, the Opening Range can act as a nice "line in the sand" to give you confidence in holding a bias in that direction.

 

Happy trading,

Lance Beggs