Monthly Archives: December 2019

Trader Motivation

 

For the first time in maybe a decade I'm not writing a post this week. Not because I lack motivation. But rather, because I've come across an exceptional resource (from Alex Vermeer) that I want to share with you.

The journey to becoming a trader is a long and frustrating one. So the more you can provide yourself with knowledge and skill in maintaining motivation, and in overcoming lapses of motivation, the faster and more effectively you will progress.

If this is an area you feel you can improve, please review and make use of the following information.

Step 1: Read the following two preliminary articles… and implement the advice they offer.

(a) Part one – Things we can do IN GENERAL to reduce procrastination

(b) Part two – Things we can do RIGHT NOW to reduce procrastination

Step 2: Go to the following webpage to download a copy of the summary "How to Get Motivated" poster. Save it and make use of it to trigger changes in behaviour, whenever you need a motivational boost.

Link: https://alexvermeer.com/getmotivated/

Scroll just over half way down the page to find the posters in various sizes.

<image: Trader Motivation>

(Source: https://alexvermeer.com/getmotivated/)

I hope this helps provide you with some clear and actionable plans for beating procrastination and doing the work necessary to make this year the best yet.

Happy trading,

Lance Beggs

PS. I discovered this great resource through the weekly newsletter provided by Recomendo – https://www.getrevue.co/profile/Recomendo

 


 

Traps Just Before RTH Open – 4

 

Traps immediately before the open… we've discussed them a number of times over the last year.

Here are some of the previous discussions, if you missed them:

 

And you'll probably find a few more examples if you scroll back through the social media feeds.

The thing is though – the market keeps presenting us with this great opportunity. And they do say that repetition is the mother of all learning. So let's look at another example, from last Monday.

<image: Traps Just Before RTH Open>

<image: Traps Just Before RTH Open>

<image: Traps Just Before RTH Open>

<image: Traps Just Before RTH Open>

From a YTC Price Action Trader perspective, it's simply a first PB in a new trend. But as the last image states – it was caught because I recognised the trap before RTH open, which had me primed, ready and waiting for the opportunity LONG.

Trades like this ONLY happen because of my Market Structure & Price Action (MSPA) Journal. If you don't have one, then I highly recommend you start. Every day – make at least one entry into the journal. Find something interesting within either the structure of the chart, or the way price moves, and document it.

Over time, you'll start to notice repetition of ideas.

And that is where you find opportunity.

Study them inside and out. Set up rules or guidelines for ways to exploit that opportunity. Implement, test and develop.

Today's article gives you two areas of exploration, in starting your own MSPA Journal.

(1) Traps before (or immediately after) RTH Open.

(2) Opening Momentum Drives.

If you follow me on social media, you will recall the following two posts in recent weeks:

<image: Opening Drive Study>

<image: Opening Drive Study>

Well now you have a third opening drive to study. And I promise you the market will provide more.

This is the path to learning.

Every day – find something interesting. Document it. Study it. And then when you start to see repetition of ideas – dig deeper and find a way to exploit that opportunity.

Happy trading,

Lance Beggs

 


 

Recognise the Current Conditions. And Adapt.

 

I'm displaying charts without any trade markers here, so that you can focus on the price action without any distraction.

Because there is a very important fact that not everyone gets. And rarely is it displayed in such a simple and obvious manner, as it is with the two charts we'll discuss today.

That fact is that NOT ALL DAYS ARE EQUAL.

Regardless of your approach to trading, some sessions will provide structure and conditions which are highly favourable. In these sessions you want to actively and aggressively engage the markets. You want to press your advantage.

Some sessions will be highly unfavourable. In these sessions you want to step back and limit engagement. Your primary aim is to minimise any damage and survive to trade another day.

And of course the majority of sessions will fit somewhere in-between – at times slightly more favourable – and at times slightly more unfavourable.

Your job is to recognise the current conditions. And adapt.

Most people focus far too much on their setups. And focus far too little on the context of the market – the background structure and conditions within which they're seeking to trade their setups.

The following two charts display the E-mini NASDAQ (NQ) 1-minute chart from 09:30 till midday. This is my primary trading period. The two charts cover Monday the 2nd and Tuesday the 3rd of December. Of note, the vertical price scale (RHS) is the same on each chart.

<image: Recognise the Current Conditions. And Adapt.>

<image: Recognise the Current Conditions. And Adapt.>

Perhaps what you consider favourable and unfavourable will differ from my preferences Perhaps if you have a preference for counter-trend mean-reversion scalping, then you'll prefer Tuesday's action to Monday's.

Regardless… the same point still applies.

Most people focus far too much on their setups. And focus far too little on the context of the market – the background structure and conditions within which they're seeking to trade their setups.

Spend some time identifying the structure and conditions in which you're most in sync with the market and most easily able to trade. And also, the structure and conditions which cause you problems.

Set up "rules" to allow quick recognition of the current state of the market. And guidelines for how you will trade.

The sooner you can recognise the current state of the market, the sooner you can adapt.

And perhaps you can stop giving back all of your "favourable day profits" when you find yourself chopped up in an unfavourable session.

Happy trading,

Lance Beggs