About: Lance Beggs

YourTradingCoach - Admin

Recent Posts by Lance Beggs

You Can’t Catch Them All

 

Never judge a missed trade by how it looks AFTER THE SESSION.

Always judge a missed trade by how it looked AT THE RIGHT-HAND SIDE OF THE SCREEN AT THE TIME OF ENTRY.

This article is in response to a question I received based upon the following image, from this prior article – http://yourtradingcoach.com/trading-process-and-strategy/how-do-you-find-time-to-plan-a-trade-on-a-1-minute-timeframe/

I didn't get an entry SHORT here... 

Here is the question I received:

  • Thank you Lance, again, for your recent article. One question that has stuck in my mind comes from the second image where you talk about the earlier missed entry. You said you can see it's an obvious trap entry point. But you weren't looking for that. Why not? Why did you miss the trade? Because, I agree with what you said. It looks obvious.

 

Check the prior article if you missed it – http://yourtradingcoach.com/trading-process-and-strategy/how-do-you-find-time-to-plan-a-trade-on-a-1-minute-timeframe/.

Ok, this is a common error.

It's so easy to look back at a chart post-session and find the largest and smoothest price swings. And then analyse the entry point to find the obvious way to get into that trade.

Followed shortly after by calling ourselves all kinds of names for having missed such a blindingly obvious entry. And then vowing to never make such a newbie error again.

Let's try it with this trade…

You can't catch them all

You can't catch them all

You can't catch them all

But it's not like that.

Trades look different at the hard right edge of the screen.

Here is the same missed trade from a different perspective, looking back at some earlier structure and positioning the entry point at the right-hand side.

You can't catch them all

You can't catch them all

You can't catch them all

You can't catch them all

I'm ok with missing this trade. I feel my assessment at the hard right edge was reasonable. I accept that you can't catch them all. And this is simply one that was not mine to catch. Hopefully you were able to catch it and profit from the whole move.

YES… we must review our charts post-session.

And it's very important to review the strongly directional price swings that were missed.

But make sure that the primary part of this review occurs at the hard right-hand edge of the screen.

Is it really something you should have caught? Or are you influenced by the hindsight view of the trade outcome?

Because the simple fact is….

as much as you'd love to…

You can't catch them all.

Happy trading,

Lance Beggs

 


 

How Do You Find Time to Plan a Trade on a 1-Minute Timeframe?

 

This is a question I get from time to time.

Quite a reasonable question, I guess, for anyone used to trading on much longer timeframes.

The answer is simple. And if you do it right you'll find that there is plenty of time. Even on a 1-minute chart.

How Do You Find Time to Plan a Trade on a 1-Minute Timeframe?

Let's repeat that for effect…

Lower timeframes require that you see the trade setup in your mind, well before it shows up on the chart.

In fact, I'd suggest that this is good practice, regardless of your trading timeframe.

It's a matter of visualisation – plotting in your mind the most likely path for the next couple of price swings. And becoming clear in your mind about EXACTLY what you need to see if these price swings could offer a trade.

Think of it like a visual form of an IF-THEN statement. "IF price goes here and looks like (this) THEN I will have potential trade opportunity."

How Do You Find Time to Plan a Trade on a 1-Minute Timeframe?

How Do You Find Time to Plan a Trade on a 1-Minute Timeframe?

How Do You Find Time to Plan a Trade on a 1-Minute Timeframe?

How Do You Find Time to Plan a Trade on a 1-Minute Timeframe?

How Do You Find Time to Plan a Trade on a 1-Minute Timeframe?

Focus is always kept AHEAD OF PRICE.

In this case, the trade planning was carried out 2-3 minutes prior to the setup actually occurring. That's quick. Often a trade idea might be visualised 5 or even 10 minutes before price sets up for entry.

Either way, it's plenty of time.

Trade entry should not be a 100% reactive process. It should be forward looking. Pre-considered and pre-planned. And only acted upon if price should subsequently prove your forward planning to be correct.

The same goes for trade management. Keep your focus and planning ahead of price.

Where is price going if the trade premise is still valid? How will this look on the charts? How will you manage your stop and target orders if this happens?

And where is price going if the trade premise is no longer valid? How will this look on the charts? How will you react if that happens?

Keep your focus and planning ahead of price.

If you can do that, then there is PLENTY of time to plan your trades, well before price actually gets to the entry point.

Happy trading,

Lance Beggs

 


 

The Key to Early Recognition of Potential Change in Structure

 

The key to early recognition of potential change in structure is in observing and identifying "SOMETHING DIFFERENT".

I absolutely love this example which has been building now since the beginning of the year.

The key to early recognition of potential change in structure

This does not mean that the uptrend will end.

It's just a warning sign.

A clue that the sentiment driving the market prior to this date has changed in some way.

A clue that there is "potential" for a change in market structure.

And for those of you who recognise this clue, the potential to more quickly adapt to any change in structure as it happens, or even before the technical change has occurred.

(By the time I publish this article the market may well have made this change. Be sure to check out the charts if you wish to see what happens next.)

For those of you who wish to join the ranks of professional traders, this is a skill you need to build. Quickly recognising and adapting to changes in the market.

And step one in that process is early recognition of "something different".

All markets.

All timeframes.

The key to early recognition of potential change in structure

I'm just stunned by that last fact.

Skip the table below if you wish, but I personally find it amazing!  (Yep… I'm a charting nerd!)

3rd Jan: Mid-Close Range 1st Feb: Mid-Close Bull 1st Mar: Mid-Close Bull
4th Jan: High-Close Bull 2nd Feb: Low-Close Range 2nd Mar: Low-Close Range
5th Jan: High-Close Bull 3rd Feb: Mid-Close Range 3rd Mar: High-Close Range
6th Jan: High-Close Bull 6th Feb: High-Close Range 6th Mar: High-Close Range
9th Jan: High-Close Bull 7th Feb: Low-Close Bull 7th Mar: Low-Close Range
10th Jan: Mid-Close Bull 8th Feb: High-Close Range 8th Mar: Mid-Close Range
11th Jan: High-Close Range 9th Feb: High-Close Bull 9th Mar: High-Close Range
12th Jan: High-Close Range 10th Feb: High-Close Bull 10th Mar: Mid-Close Bull
13th Jan: High-Close Bull 13th Feb: High-Close Bull 13th Mar: High-Close Bull
16th Jan: Low-Close Range 14th Feb: High-Close Bull 14th Mar: High-Close Range
17th Jan: Mid-Close Bear 15th Feb: High-Close Bull 15th Mar: High-Close Bull
18th Jan: High-Close Bull 16th Feb: Mid-Close Range 16th Mar: Mid-Close Range
19th Jan: Mid-Close Range 17th Feb: High-Close Bull 17th Mar: Low-Close Range
20th Jan: Mid-Close Range 20th Feb: High-Close Bull 20th Mar: Mid-Close Range
23rd Jan: High-Close Range 21st Feb: Mid-Close Range 21st Mar: Low-Close Bear
24th Jan: High-Close Bull 22nd Feb: High-Close Range  
25th Jan: High-Close Bull 23rd Feb: Mid-Close Bear  
26th Jan: Low-Close Range 24th Feb: High-Close Range  
27th Jan: High-Close Range 27th Feb: High-Close Bull  
30th Jan: Mid-Close Bear 28th Feb: Mid-Close Range  
31st Jan: High-Close Range    

 

(See here if you're not familiar with this form of candlestick classification – Parts: One Two Three Four Five )

The key to early recognition of potential change in structure is in observing and identifying "SOMETHING DIFFERENT".

In a stable trend, watch for changes in volatility, or in the pace of the trend. Watch for changes in the way that price swings project beyond the previous swing high or low. Or in changes to the depth of pullbacks. Or, as in today's example, watch for a sudden and strong move counter-trend.

In a stable sideways market, watch again for sudden changes in volatility. Or sudden and dramatic increases in volume. Or (one of my favourites) watch for signs of price compression towards either the upper or lower boundaries of the range.

Something different in the way that price has been moving.

Observe it.

Question it. What could it mean? Could this in any way provide a clue to a potential change in structure?

Now… watch and adapt.

The key to early recognition of potential change in structure

The key to early recognition of potential change in structure

The key to early recognition of potential change in structure

Happy trading,

Lance Beggs

 


 

The Key to Effective Active Trade Management

 

Here was the general plan:

The key to effective Active Trade Management

The key to effective Active Trade Management

The key to effective Active Trade Management

The key to effective Active Trade Management

I won't go into detail regarding the wider market environment and context within which the trade occurred. It's not the point of the article.

Truth be told – it was a marginal trade at best.

Ideally such a trade would be taken in a market with a strong bearish conviction.

But that wasn't the case.

The environment was poor. There was no clear trend structure in place. And the bias was uncertain, with price showing no clear dominant strength with either bulls or bears.

But I was aware of this. I was in "trade cautiously" mode. Standing aside mostly. With a plan that if I did take a trade it was to be with a smaller position size. This would continue until there was a clear trend structure and some good directional conviction.

We could argue back and forth all day as to whether or not the trade idea had edge. I will accept it was marginal.

But I took the trade.

And it contains a good lesson on active trade management.

So we will discuss it today.

Here are the charts just prior to my entry:

The key to effective Active Trade Management

Here's the entry:

The key to effective Active Trade Management

Here is what I'd like to see happen:

The key to effective Active Trade Management

But what we want to happen, doesn't always happen.

And that brings us to today's lesson:

The key to effective Active Trade Management is knowing what SHOULD NOT happen.

There are two outcomes that SHOULD NOT happen, if my trade premise is still valid.

(1) Price will immediately smash higher and stop me out. Should that happen, I'll just take the loss. It's unlikely that I will have the opportunity to work a better exit.

(2) Price will stall towards the upper edge of the congestion area and then break higher.

The key to effective Active Trade Management

Here's the outcome:

The key to effective Active Trade Management

The key to effective Active Trade Management

The key to effective Active Trade Management is knowing what SHOULD NOT happen.

Then recognising it.

And acting to contain any damage.

If your edge is gone, GET OUT.

Happy trading,

Lance Beggs

 


 

How to Kick-Start Your Growth and Development

 

If your progress has stalled in any way, it is just SO IMPORTANT to realise the following truth:

Progress comes from your growth and development plan, not from your strategy.

This just won't work:

The typical failed process

Hoping, wishing and praying doesn't work.

Just trying harder doesn't work.

You need something ACTIONABLE.

Let's fix it NOW:

STEP ONE: Implement a growth and development plan based upon GROUPS OF TRADES.

Here is the concept. Review the following articles:

(a)  http://yourtradingcoach.com/trading-business/its-time-to-fight-to-get-to-the-next-level/ 

(b)  http://yourtradingcoach.com/trading-business/its-time-to-fight-to-get-to-the-next-level-examples/

(c)  http://yourtradingcoach.com/trading-business/you-can-do-this/

(d)  http://yourtradingcoach.com/trading-business/consistency-its-a-necessary-part-of-the-process/

(e)  http://yourtradingcoach.com/trading-business/before-making-changes-to-your-strategy/

A GROUP OF TRADES Growth and Development Process

Also… any changes you're making…  consider making them the stretch goal for your next group.

See here – http://yourtradingcoach.com/trading-business/stretching-to-the-next-level/

A stretch goal - just a little stretch beyond current capabilities

Most importantly, major process changes can only occur at the end of each group. And they must be based upon proper review and analysis of your group stats and journal entries.

STEP TWO: Intra-group, monitor daily to ensure consistent implementation of your process.

No major process changes occur here.

Only tweaks or minor changes to how you execute your processes.

A daily review to improve implementation of your processes

Now move the response to question three to tomorrow's pre-session planning.

Remember:

Progress comes from your growth and development plan, not from your strategy.

If you're not progressing, then something HAS TO CHANGE.

Something actionable.

Something concrete.

Between groups, you MUST identify a concrete, actionable improvement to process.

Within groups, you MUST monitor consistency in implementing process, and tweak as required to improve implementation.

Hoping, wishing and praying that somehow this time it will be different, doesn't work.

Just trying harder, doesn't work.

Find something REAL that you can implement.

It won't always be easy. In fact it will rarely be easy. But damn it, you can't progress by just continuing on the same treadmill.

Fight to find an actionable change that progresses you in the right direction. Implement it. Repeat.

You can do this, 

Lance Beggs