(1) My Focus is on the Metagame
Most price action traders are focused on the patterns that result from price movement, in the expectation (hope) that these patterns will lead to further price movement, just as the textbooks say they should.
But what they're missing is the deeper level of understanding.
I don't play this game.
I play the metagame.
A metagame is most simply defined as "the game behind the game". It's the game outside of the obvious rules where the player makes decisions based upon what their opponent is thinking and how you expect them to act.
This is the real game in trading. It's not the technicals which move price. It's not the fundamentals. It's orderflow. And that orderflow comes from the decisions and actions of the other market participants.
Learn to find the times and places on the chart where other market participants will act, through fear or greed, and you've found an edge in the markets.
What I'd like to share today is the very first article I wrote introducing this topic, way back in 2009.
It's also my favourite YTC article of all time.
(2) My Focus is on Market Structure
I'm not a pattern trader. I don't believe that works. At least not the way that most teach it.
It's the easiest thing in the world to sell the idea of a simplistic pattern-based approach… "Here are the patterns, now just sit back and wait for them to appear. Oh… and be sure to only take the higher probability ones."
All the educator then needs to do is to blame failure on the customers lack of discipline… "No, that's a lower probability one due to factors x,y and z. See how you'd be better if you passed on that one and traded this other one over here!"
What a load of BS!
What most of these educators are missing is the importance of context. Patterns are fine if you want to trade them. But they must be traded within the appropriate context.
There are numerous ways that this can be done, but my preferred approach is through an understanding of the market structure. Where is the current price movement (or pattern) occurring within the higher timeframe S/R framework? What is the nature of the current environment (trendiness, strength/weakness, volatility, thickness, liquidity etc). How will that influence the decisions and actions of other market participants? Will that provide trade opportunity or are we better standing aside?
I'd like to now share another piece of YTC article history.
This article does not "teach you" market structure (there's a whole lot of that if you just search my site or use the Market Structure tag in the tag list on the RHS of the site-map).
Instead it does something much more important. It sets in place one of the foundations that you'll need for "teaching yourself" to read and exploit market structure. Because market structure, like the price action that flows within it, is not a "one off" learning process, but rather a life-long process of skill development.
Here's the article: http://yourtradingcoach.com/trading-business/the-greatest-trading-book-ever/.
(3) My Focus is on Real-Time Bar-by Bar Analysis
By now you might have realised that I'm not a typical pattern trader. Rather, being a price action trader for me is more a process of learning to read the shifting sentiment of market participants in all price action. Not just in those sequences that match a pattern in our text book.
To demonstrate this concept I'd like to link to two articles.
While the process that I use is a little different to that shown within the articles below (I use a multiple-timeframe approach rather than single-timeframe as shown), the articles do serve their purpose in providing an introduction to a different (and I think better) way of trading price action.
You can find the first here: http://yourtradingcoach.com/trading-process-and-strategy/advanced-candlestick-analysis-part-1-of-2/.
(4) My Focus is on the Business Aspects of Trading
Trading for a living is not just about strategy.
There are many business aspects that are just as important, if not more important:
- Documentation – Trading Plan, Procedures Manual and numerous others!
- Contingency Management Planning
- Money Management Planning
- Daily, Weekly and Monthly Routines
I'd like now to share with you two prior articles that provide a sample of a Pre-Session and a Post-Session Routine. Hopefully you find them to be of value.
You'll find the Pre-Session article here: http://yourtradingcoach.com/trading-business/my-pre-session-routine/.
And the Post-Session article here: http://yourtradingcoach.com/trading-business/my-post-session-routine/.
(5) My Focus is on Process
One of the annoying things about most writing on trading is that it simply focuses on the entry signal. The reality though is that the entry is just one part of the whole process. Yes… trading is a process… from identifying the market structure right through to trade management and exit. It's not just about getting a good entry signal.
So let's look at two "image based" articles which demonstrate the whole process.
And the followup article: http://yourtradingcoach.com/trading-process-and-strategy/its-a-process-2/.
There are a couple of more "It's a Process" articles as well if you wish to search through the site archives – http://yourtradingcoach.com/site-map/
(6) – My Focus is on… Well… So Much More!
In the article above we've discussed a few trading topics which I believe make YTC somewhat unique in the trader education world.
My intent was to give you a "Top 5".
But the fact is that there are so many more articles in the YTC archives that could easily have been included in that Top 5. It was not an easy process to narrow the list down (currently at over 350 articles).
So let's list a few of the topic ideas which came close to being Top 5, and provide links to some of the articles.
This will not be an exhaustive list of articles on each topic. Just a few of my favourites. If you're interested in the topic, click through and have a read! 🙂
My Focus is on Traps:
- Gaining Confidence in Taking the Trap Entries (Part 1 of 2)
- Gaining Confidence in Taking the Trap Entries (Part 2 of 2)
- Traps Against Bias
My Focus is on Buying Well Before the Standard Retail Trader:
- When Struggling – Return to First Principles
- Buy Because There Are No More Sellers
- Things Do Not Change – We Change
- Buy Because There Are No More Sellers (With Lower Timeframe)
My Focus is on Active Trade Management:
- Active vs Passive Trade Management
- Active Management and Defensive Exit – An Example
- Active Trade Management – Reassessing Risk and Opportunity
My Focus is on Exit Strategy:
- The Importance of Exit Strategy (Part 1 of 3)
- The Importance of Exit Strategy (Part 2 of 3)
- The Importance of Exit Strategy (Part 3 of 3)
My Focus is on Trade Results over a Series of Trades:
- Individual Trade Results Are Irrelevant
- You Have Too Much Focus on Individual Trade Results
- Stop Hoping Your Trade Will Win
- Trade Management is More Important Than Trade Entry
My Focus is on Losing Well! 🙂
My Focus is on The Trader:
- Trader Fatigue Management
- How Can I Get More Discipline? (Parts 1 and 2)
- Creating the Conditions for Success
You want more?
Enjoy your reading!
(7) – One Final Thing
If this has you interested in how I trade… here's an intro to the YTC Price Action Trader:
|Instant PDF download|
|590 pages of quality trading education|
|Including 377 charts and diagrams|
|PLUS NOW WITH 2 BONUSES – FAQ Document (2 volumes) + 42 minute mp4 video (Future Trend – Simplified)|
Who is it for?
|The YTC Price Action Trader is for the discretionary price action trader.|
|It was written for those who trade the futures or forex markets on low intraday timeframes (3 min chart). However, price action principles are applicable in all markets and all timeframes, provided they offer sufficient liquidity to ensure smooth price flow (ie. don't trade them on illiquid penny stocks which gap all over the place) and sufficient price range to allow profits after costs.
So the method can be adapted if you trade other markets or higher timeframes.
|It's not for those beginners who are seeking certainty in the markets through a systems approach, or through simplistic patterns. It's for those who have moved beyond that.
The YTC Price Action Trader is for the more advanced trader, who recognises that trading success comes from learning to adapt to and operate in the uncertainty of the market environment.
|It's for people who understand that a real edge comes from:
What Topics Does it Cover?
Be sure to check out some of the many testimonials… 🙂
- Page 1: http://www.ytcpriceactiontrader.com/testimonials.html
- Page 2: http://www.ytcpriceactiontrader.com/testimonials2.html
- Page 3: http://www.ytcpriceactiontrader.com/testimonials3.html
- Page 4: http://www.ytcpriceactiontrader.com/testimonials4.html
- Page 5: http://www.ytcpriceactiontrader.com/testimonials5.html
- Page 6: http://www.ytcpriceactiontrader.com/testimonials6.html
- Page 7: http://www.ytcpriceactiontrader.com/testimonials7.html
Or how about I just put the first one here…
Click below for more information (including a Table of Contents and sample pages)…