You might recall this previous article which talks about the fact that the real source of my edge is not my strategy, but rather it's me. The knowledge, the skill and the attitude which I bring to the market each day.
I'd like to touch on a part of this edge today and then again in a followup article next week.
In particular just one simple idea.
The fact that PATIENCE plays a key role in this game.
A key component of my edge is in recognising and accepting that I do NOT have to trade every price sequence.
The same applies to you. You do NOT have to trade every price sequence.
When the bias is unclear, stand aside or trade another market.
When the pace of price flow is too fast or too slow for your liking, stand aside or trade another market.
When the price action is choppy rather than flowing smoothly, stand aside or trade another market.
The game is hard enough. Don't make it any more difficult than it needs to be.
Remain focused. Remain alert. But remain patient.
Watch and wait. If it's not right, stand aside.
And when it is right, when it's screaming out to be traded, attack and destroy that opportunity.
YTC Price Action Trader references:
- The First and Second Principles – Volume 2, Page 145-148
- The PB & CPB Setups – Volume 3, Pages 34-40
For the lower timeframe view, let's use the YTC Scalper templates for a change. I don't do that often enough. The reasoning behind timing of the entries should be obvious to anyone who uses this variation of the YTC lower timeframes.
The full sequence, from a higher timeframe perspective:
The key takeaway today is this…
You don't have to trade every price sequence.
If the market offers something that is not comfortable, or that's not easy to read, stand aside and wait.
The time to trade is ONLY when you feel it's flowing nicely and you're completely in sync with the price swings.
That is when you trade. No other time.
Let's continue this next week with a look at what happens when I don't remain patient. When I'm not in sync with the market. When I'm trying to force something that is just not there.
Because the market doesn't always offer a nice trending move like displayed here today. And because… well… I don't always get it right! 🙂
Till next week,
PS. Patience… expressed in a different way: http://yourtradingcoach.com/trader/if-i-could-only-take-one-trade/