About: Lance Beggs

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Recent Posts by Lance Beggs

A Shift in Mindset

 

I love this comment in response to last week's article (see the article here if you missed it).

<image: A Shift in Mindset>

This was the trade Steve is referring to:

<image: A Shift in Mindset>

Too many traders take the loss personally. As Steve says, they're stuck in the mindset of "Aaargh, I did it again."

Their focus is on themselves and their feeling of intense injustice and frustration.

Their focus is NOT on the price movement.

And so they miss the next opportunity, which spirals them into even greater depths of despair, especially when that opportunity is back in the original direction in which they entered.

LOSSES ARE A PART OF THE GAME.

Take the hit. Refocus yourself. And move on. (Provided session loss limits are not hit, in which case you shut down for the day!)

We've talked quite a bit over the years about the fact that trading is NOT about individual trades. Instead it's a game of profiting over a SERIES of trades.

Individual trade results are irrelevant. Series of trades are what matters.

And here's the thing – every series of trades will likely contain a combination of both winners AND losers.

LOSSES ARE A PART OF THE GAME.

Take the hit. Refocus yourself. And move on.

I shared a simple concept once before, which may help create a shift in mindset for some who read it. Let's repeat the idea today.

What if you stopped trying to find winners?

<image: A Shift in Mindset>

Why is that?

Because…

<image: A Shift in Mindset>

<image: A Shift in Mindset>

It's an important difference.

A novice trader is trying to find a trade that will win.

I'm trying to find a trade that is worthy of being one in a series of twenty. 

I don't need a winner.

I place all the odds in my favour. And I take the trade.

If it's a loss, I take the hit, refocus and move on.

It's a slightly different mindset… but one with a whole lot less fear.

I want to share one more idea which might help create this shift in mindset. But this article is long enough already.

Let's continue next week.

Happy trading,

Lance Beggs

 


 

Chasing Performance

 

Here's a little post-session exercise which may help stretch your performance to "never-before-reached" profit levels.

Pick a target just above your all-time-high for a trading session. Whatever that is – $100, $500, $1000, $5000 or more.

And ask yourself the following.

Looking at the chart for today's session, with the benefit of hindsight, how could I have achieved an all-time high in profits?

It's not about beating yourself up for having failed to reach new highs. Most days you won't reach them.

But it's about pushing yourself. Never settling for mediocrity. Always stretching to achieve more.

Look at the chart. Look at your trades.

Were there were price sequences which you failed to see? Is there some way you could you have captured them?

Were there price sequences in which you underperformed? Could you have taken more out of the move? Could you have increased size somehow? Could you have re-entered if stopped out? Could you have extended the targets or trailed price differently?

If you somehow did manage to squeeze all the profits out of your strategy that day, then ask if there were other ways could you have viewed price and profited? Operate from an assumption that there WAS some way to have achieved new all-time highs today. NOW FIND IT.

And just maybe… next time… you'll take the lessons learnt and actually push through to achieve these new levels of performance.

<image: Chasing Performance>

<image: Chasing Performance>

<image: Chasing Performance>

<image: Chasing Performance>

<image: Chasing Performance>

LWP Reference (for those who want to review the concept) – Vol 3, Ch 4, pp 72-77

<image: Chasing Performance>

<image: Chasing Performance>

<image: Chasing Performance>

<image: Chasing Performance>

Post-session:

Consider your outcome. And compare it with your all-time high.

Review the charts and find ways you could have stretched yourself to never-before achieved levels of performance.

Perhaps next time, this exercise might just help you reach the new target.

Happy trading,

Lance Beggs

 


 

What Puts You In Sync (or Out of Sync) With Price Flow?

 

I sent out the following post via social media earlier this week. It's a theme I've pushed quite a bit over the last few years because I feel it's incredibly important.

No matter what markets you trade. No matter what timeframe you trade. No matter what strategy you trade.

There will be price sequences where you are in sync with the movement and smashing it out of the ballpark.

And there will be price sequences where you are out of sync and just nothing seems to ever go right.

Here's the post:

<image: Not all conditions are equal>

Why is this important?

The quicker you can recognise change to favourable or unfavourable conditions, the quicker you can adapt tactics to suit.

In response to the post, I received the following question on twitter:

  • What are some things one can do to put together a framework for identifying these transitions?

 

Great question!

Here's one thing that you can do…

Before you can study the transitions, you need to know what type of price sequences lead to you underperforming. And which lead to exceptional performance. From that foundation, you can study the transitions in and out of these sequences.

So here is the plan…

Something you might want to consider post-session…

Examine the price sequences where you just couldn't read the market bias!

These are the sequences where you have no idea what is going on. "It's bullish. No… it's bearish. No… wait.. hang on…it's going… damn it! I have no idea at all."

The sooner you can recognise this (and accept it) the sooner you can stand aside and limit damage, waiting until some clarity returns to the market.

Post-Session:

1. Take note of any price sequences which resulted in complete uncertainty about the directional bias.

2. Review the conditions – market structure, price action and human performance factors – which may have influenced your decision making.

3. Document your findings.

4. Over time, you'll start to identify those conditions which have the potential to put you out of sync with the market, allowing you to recognise and adapt more quickly in future.

Examine the price sequences in which you found yourself fighting the bias for multiple trades!

These are the sequences in which you were confident that you had picked a market direction, but then got stopped out of one trade… and then another… and maybe more… as you fought what was in reality a completely opposite bias. Hindsight is a beautiful thing. But it's also where we learn. Study these sequences and learn what puts you 180 degrees out of sync.

Post-Session:

1. Take note of any price sequences which resulted in multiple attempts to trade the market from the wrong side.

2. Review the conditions – market structure, price action and human performance factors – which may have influenced your decision making.

3. Document your findings.

4. Over time, you'll start to identify those conditions which have the potential to put you out of sync with the market, allowing you to recognise and adapt more quickly in future.

Examine the price sequences in which you read the market bias well but just couldn't execute in sync with the market!

These are the sequences in which were 100% spot-on regarding the market bias, but just couldn't get those trades going. Choppy price action leading to hesitation. Or maybe tripping stops and leaving you watch from the sidelines while it goes to the target without you.

Post-Session:

1. Take note of any price sequences which resulted in a correct bias but a complete inability to profit from your market read.

2. Review the conditions – market structure, price action and human performance factors – which may have influenced your decision making.

3. Document your findings.

4. Over time, you'll start to identify those conditions which have the potential to put you out of sync with the market, allowing you to recognise and adapt more quickly in future.

Examine the price sequences in which you read the market bias well AND executed well.

These are the sequences in which you just smash it out of the ballpark. Not only can you see the market bias, but every fibre of your being senses it as well. And your timing just fits perfectly.

Post-Session:

1. Take note of any price sequences which resulted in A+ trading and clear outperformance.

2. Review the conditions – market structure, price action and human performance factors – which may have influenced your decision making.

3. Document your findings.

4. Over time, you'll start to identify those conditions which have the potential to put you quickly in sync with the market, allowing you to recognise and exploit the situation more quickly in future.

A whole lot of work, but it will pay you back a thousand-fold.

Happy trading,

Lance Beggs

 


 

How I Think on Trade Exit

 

Context:

<image: How I Think on Trade Exit>

The trade idea:

<image: How I Think on Trade Exit>

The entry:

<image: How I Think on Trade Exit>

Out:

<image: How I Think on Trade Exit>

How I think on trade exit:

<image: How I Think on Trade Exit>

<image: How I Think on Trade Exit>

<image: How I Think on Trade Exit>

All exits are temporary.

Pause and reassess.

Consider re-entry if the premise remains valid.

<image: How I Think on Trade Exit>

<image: How I Think on Trade Exit>

<image: How I Think on Trade Exit>

<image: How I Think on Trade Exit>

<image: How I Think on Trade Exit>

<image: How I Think on Trade Exit>

<image: How I Think on Trade Exit>

Sometimes it takes two entries. Sometimes it takes three.

There are no ways around this.

In the uncertainty of market action it's unreasonable to expect that we will always get a perfect entry.

So we're left with two options. Either we spread the entry via multiple parts across a general entry "area". Or we try for all-in precision but accept the fact that sometimes we'll need two or even three attempts to catch the move.

Although I sometimes trade the first method, my preference is for the second. All-in entries, accepting that it may take multiple attempts.

All exits are temporary. Pause and reassess. Consider re-entry if the premise remains valid.

Happy trading,

Lance Beggs

 


 

Traps Immediately After the Open

 

The open can be a time of great opportunity. But you need to be prepared.

My default option is to always wait for the Trading Timeframe (TTF) to develop some structure. To wait until the initial trend is clear and obvious.

But there are some times when I'll trade earlier, before the TTF settles into the day's trend.

Like here…

<image: Traps Immediately After the Open>

There are generally three situations where I'll take an early trade.

The only way I can catch them is to be prepared. BEFORE THE OPEN!

I will ask some questions:

(1) Is there some exceptional pre-session structure to trade off?

<image: Traps Immediately After the Open>

(2) If price drives strongly, will it be driving into clear space that offers good potential for continuation?

<image: Traps Immediately After the Open>

(3) If price offers a trap immediately after the open, would the structure offer a multiple-R potential?

<image: Traps Immediately After the Open>

If none of these three questions suggest good trade opportunity, then I will happily sit back and relax until there is some structure in play.

But if the answer to any of these questions is YES, then I will pre-consider how the price action will need to set up. And I will prepare myself for potential opportunity very quickly after the open.

Today I will remain alert and ready for a possible trap opportunity.

<image: Traps Immediately After the Open>

<image: Traps Immediately After the Open>

<image: Traps Immediately After the Open>

<image: Traps Immediately After the Open>

See here for more on PB Setups.

<image: Traps Immediately After the Open>

<image: Traps Immediately After the Open>

<image: Traps Immediately After the Open>

(1) Is there some exceptional pre-session structure to trade off?

(2) If price drives strongly, will it be driving into clear space that offers good potential for continuation?

(3) If price offers a trap immediately after the open, would the structure offer a multiple-R potential?

If the answer to any of these is YES, then pre-consider how the price action will need to set up. You might just find some opportunity very quickly after the open.

But if the answer to all three is NO, then sit back and relax. Let the open play out and wait until some new structure develops.

Happy trading,

Lance Beggs

 


 

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