About: Lance Beggs

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Recent Posts by Lance Beggs

It’s Game On! Let’s Trade!

 

I operate with three general levels of engagement – Trading, Trade with Caution, and Stand Aside.

Because not all conditions in the market are the same.

If you haven't done so, I highly recommend adopting a similar practice. Take some time to consider the factors that might trigger each level of engagement in your own trading business.

Today let's look at three factors which had me in "Trading" mode right at the market open. No delays. No hesitation.

With these three factors in play, I wanted to be in the first opportunity I could find.

<image: It's Game On! Let's Trade!>

<image: It's Game On! Let's Trade!>

<image: It's Game On! Let's Trade!>

A gap open, from a strong and persistent overnight uptrend, with a recent trap showing an inability to drop.

There is emotion in the market.

And I want to trade.

(See here for prior articles on traps just before the open – here and here).

<image: It's Game On! Let's Trade!>

(NB. YTC Price Action Trader concepts – The First Principle is in play, PB setup)

<image: It's Game On! Let's Trade!>

<image: It's Game On! Let's Trade!>

<image: It's Game On! Let's Trade!>

I don't want to trade all market opens.

There are many that I classify as "Trade with Caution". Think of the opposite of today's example – a market opening in the middle of the prior day's range, following a dull and lifeless sideways overnight session. There is no emotion driving the market. And so I have no business in taking a position until something changes. Wait patiently. Let the opening structure form (5 minutes, 15 minutes, 30 minutes… or as long as it takes). And then trade off that structure.

But there are other days when I don't want to wait. Market sentiment appears to be strong and potentially one-sided. This is not a time to wait. This is not a time to "Trade with Caution".

Today was not one for waiting. It's game on. Let's trade.

Again, if you haven't done so, I highly recommend adopting a similar practice of classifying three general levels of engagement – Trading, Trade with Caution, and Stand Aside.

Take some time to consider the factors which might trigger each level of engagement in your own trading business.

Happy trading,

Lance Beggs

 


 

Overnight Range Double Break

 

There were three NQ sessions in the last two weeks which broke both sides of the overnight range. Let's check them out.

The following are all Higher Timeframe 15 minute charts. I chose this timeframe simply because it fits on the image quite nicely. Whatever higher timeframe you use, is fine. The concept here is the same.

<image: Overnight Range Double Break>

<image: Overnight Range Double Break>

<image: Overnight Range Double Break>

<image: Overnight Range Double Break>

<image: Overnight Range Double Break>

<image: Overnight Range Double Break>

<image: Overnight Range Double Break>

<image: Overnight Range Double Break>

<image: Overnight Range Double Break>

Does this always happen?

No.

Does this mean that when it does happen that the trend always will be smooth and easy to trade?

No.

But you can bet your whole account on the fact that when it does happen, I'll be prepared, focused and ready to exploit any trend that does develop.

YTC Price Action Trader with-trend setups ONLY.

Until the market proves otherwise.

Have a look through some of the charts in your own markets and see if you can identify a similar feature. Forex traders will want to use a break of both sides of a narrow range Asian session.

Happy trading,

Lance Beggs

 


 

Managing Trading Decisions with Simple Compliance Checks

 

I want to share a simple process used by a reader in addressing a recurring problem in his trading. I was happy to see him use this approach, because it references a post-session technique I shared quite a few years back.

And perhaps it will be useful to you as well, in ensuring compliance with any changes you wish to make to your trading.

Problem:

With-Trend (WT) trades were providing positive stats but he was consistently giving too much back through his Counter-Trend (CT) trades. The CT trades show some promise so he's not quite willing to abandon them entirely. But he wants to cut back on the number.

So here's the plan:

(a) No CT trades unless the daily P&L is positive.

(b) Aim to ensure that there are more WT trades than CT trades.

The plan for this month is to ensure 100% compliance. Item (a) will avoid his tendency to dig himself into a hole occasionally in fading a trending market. And item (b) will ensure that he is trading (more often than not) in the direction that "should" offer the most opportunity.

One month only. Then reassess.

In particular item (b) because he does recognise that some days are quite rotational and may be better suited to CT trading.

But that's for the future. For this month, 100% compliance. And let's see if that provides improvement to the trading results.

Implementation:

Pre-Session:

  • Reading the plan and making a verbal declaration of intent to comply with both items.

 

In-Session

  • A single sheet of paper with two columns – WT and CT. Place a checkmark after each trade. The aim is to ensure more checkmarks in the WT column than the CT column.

 

Post-Session

  • Addition of two Compliance Check questions to his post-session routine.
    • (1) Were any CT trades taken with P&L at or below zero? If so, why?
    • (2) Did the WT trades outnumber the CT trades? If not, why not?
  • Marking up a calendar with a large green tick if he complied with both items.

 

The use of the calendar is something we discussed here – http://yourtradingcoach.com/trading-business/dont-break-the-chain-a-simple-tool-to-improve-consistency/. The original discussion aimed to ensure consistency in completing each part of your daily routine. What he is doing differently is using this same technique to ensure compliance with desired changes in his decision making. Effectively, using it as a reward or punishment system to guide and shape changes in the way he trades.

I also love the use of green ticks rather than the red crosses we used in the original article. Green ticks provide a more "positive" reinforcement than red crosses.

At Month End:

  • Review the outcome, ideally achieving both WT and CT profits, but at the very least ensuring that CT losses are somewhat contained and do not completely erode the WT profits.
  • Assess the effectiveness of the plan in making positive changes to the trade results.
  • Continue or amend, as required.

 

It's Your Turn to Take Action:

What trading behaviour do you need to reinforce on a daily basis? Is there something you know you need to change, only to find yourself repeating the old behaviour over and over again?

Consider trying a similar process, as described above. Just for a month.

Pre-Session declaration of intent. In-Session tracking to manage your decision making. Post-Session confirmation of compliance and a visual reward system to track your progress.

See if you can keep those green ticks going for the whole month!

It only adds a couple of minutes to your trading routines. But if it can help to reshape your behaviour away from destructive practices, then the benefits could be priceless.

<image: Managing Trading Decisions with Simple Compliance Checks>

Happy trading,

Lance Beggs

 


 

Do NOT Make the Same Mistake Three Times

 

Ideally, you won't make the same mistake two times.

But it happens.

So here's an idea.

Use that second occurrence as a trigger to INCREASE AWARENESS and FOCUS.

And make absolutely certain that you do NOT make the same mistake a third time.

Clearly there is something wrong with your execution or decision making. Make this a new short-term priority. Two times is enough. Do not accept a third.

And if you do get a third… banish yourself to the Sin Bin for a short while.

<image: Do NOT make the same mistake 3 times>

Let's drop down to the Trading Timeframe chart:

<image: Do NOT make the same mistake 3 times>

Reference: CPB Setup

<image: Do NOT make the same mistake 3 times>

<image: Do NOT make the same mistake 3 times>

<image: Do NOT make the same mistake 3 times>

That's now two mistakes.

It's time to get angry. Time to focus. Time to vow to NOT make the same mistake three times.

<image: Do NOT make the same mistake 3 times>

Reference: BOF and BPB Setups

<image: Do NOT make the same mistake 3 times>

Do NOT make the same mistake three times.

Use the second occurrence as a trigger to INCREASE AWARENESS and FOCUS.

And make absolutely certain that you do NOT make the same mistake a third time.

Happy trading,

Lance Beggs

 


 

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

 


 

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