The Hardest Trade

 

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What do we do here?

Well there's not a lot we can do. It's missed opportunity.

And yes, I know that with hindsight we can look at the lower timeframes and find ways we "could" have got in. But we're not hindsight traders!

It's missed opportunity. It's gone. And our job is now to get on with the business of being a trader.

We've covered this scenario before.

See here for example, where we discussed an effective mindset hack through affirming – "It was never mine to take. If it was, I would have taken it. Let it go!"

So I did this.

I let it go.

I took a quick walk and cleared my head. And came back to the screens.

But let's be realistic here.

This next trade… is NOT going to be easy.

The first trade after missed opportunity can be one of the hardest trades.

The last thing I want to do is get smashed twice. Following up the missed opportunity with a losing trade.

I know… this shouldn't be any concern… every trade is independent and our edge plays out over a series of trades!

But I'm human… and even having carried out my regroup & focus routines… I recognised residual emotion.

So what to do?

Here were my actions:

1. Extend the break – NO TRADING. Let this whole price swing play out with no intentions to trade.

2. Use this time to absorb myself in the price movement. Watch and feel the bullish and bearish pressure play out within each candle.

3. When this price swing is complete AND I feel in sync with the price movement, it's GAME ON. Define the new trend structure. Project it forward. And seek the next trade opportunity.

The intent here is to get myself "out of my own head" and focused back on the price movement.

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Be careful in the pullback from here. Initial strength in the rally was news driven. But note how it weakened into the top of the swing. YTC PAT readers – this is a Second Principle scenario. Not First Principle. Be patient here.

And if it goes too deep, consider the possibility of this eventually transitioning into a sideways trend.

Until then though, I'm still looking for buy opportunity for continuation higher.

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Well done to anyone who might have traded something like an opening range breakout strategy, off the first 5 minute candle. You got a home run trade today.

For me though – it's one of those days with missed opportunity.

That happens. It's part of the game.

What is important though, is how we respond.

Take a break. Remind yourself – "Let it go. It wasn't mine to catch. If it was, I would have caught it."

And if there is still residual emotion, just watch and wait and let the next swing (or two or three) play out. There is no hurry to trade. Absorb yourself in the price movement. And then… when the structure becomes clear and you feel in sync with the price movement… only then is it time to trade.

Happy trading,

Lance Beggs

 


 

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YourTradingCoach - Admin

10 Comments to “The Hardest Trade”

  1. Ryan Miller says:

    Only blog that survived after all the bookmarks that i have done 6 years back. Nice consistency Lance. You are really a good at it. I blowed my last account 4 years back due to not back testing and trading. Now thinking to start trading again. Any Tips will be deeply appreciated and can you tell me some resources for volume analysis.
    And for God sake Lance if you are consistently profitable then you should look forward to expand.

    Thank you

    • Lance Beggs says:

      Hi Ryan,

      Welcome back to the markets. That is a real sign of someone who has a deep passion for this game. You take a beating and yet… after a break… there is something inside that always calls you back to the markets.

      Here’s hoping that this time leads to a better outcome.

      Slow & steady. See it as a process of skill development. Sim first. Then small size live (the new micros are brilliant for this, if you trade futures). And then gradual, incremental increases, ONLY when consistency is proven at each level.

      Volume analysis is tough to recommend as it’s not a method I use. If I was going to explore that though the first place would be through a study of Volume Spread Analysis (VSA). Google it if you’re not familiar with the approach.

      You suggest I “should look forward to expand”. What do you mean? Expand my trading to new markets? Expand YTC to new services?

      Cheers,
      Lance

  2. Ryan Miller says:

    Hi Lance,
    I was taking about YTC new services as well as why are you not Uploading video on YouTube there are many fakers out there telling lies about trading. You are Consistent profitable, well experienced as well as you have more than 38k sub.
    You can tell them its a not quick rich thing, what was your mindset before taking a trade, successful habits, trade review .Those things you tell here because the new generation don’t like to read they like to watch videos plus it require less time to speak than to write hole thing,will be much more fun and easy to review(if you do that).
    And don’t think i am a Freelancer or Social Media Manager i am just an IT Guy which hates his job and that’s it and want to learn stock market so that i can achieve Financial Independency.

    Thank you

    • Lance Beggs says:

      Hi Ryan,

      Thanks for clarifying. Yes, I’m WELL OVERDUE for new YTC services. I’ve recognised that for quite a while. It’s a matter of just finding the right path that inspires me (and doesn’t make it feel like a “job”).

      The most persistent calls have been for either video or webinar training. I’ll add you as one more vote in that area.

      You say, “the new generation don’t like to read they like to watch videos”.

      I’d suggest you’re 100% right about this new generation. But I find it quite interesting. I’m not a fan of the video medium for educational purposes. Anyone who actually has the ability to think (something clearly lacking in new generations) will recognise that text offers significant advantages. I can skim through the material in minutes (or less) to determine relevance. I can copy/paste/summarise/archive etc. Contrast that with sitting through an hour long webinar or video, only to find that after you take out 20 minutes of general chit-chat, 20 minutes of listening to an irrelevant rant about whatever someone else in the industry said, and 19 minutes of basic crap you already knew, just to find there was maybe one minute in total that perhaps was interesting, relevant and worth exploring further.

      I’d suggest the majority of the audience prefer video because they want to be entertained rather than educated. And I have no interest in entertaining.

      Plus… I’m a massive introvert. The last thing I actually feel like doing is live presentations.

      And it is actually a hell of a lot of work to put together something professional. Much more time consuming than text.

      What is my place in this industry going forward? I have no idea. I’m still searching.

      Cheers,
      Lance

      • Ian says:

        That! I hate these video tutorials, it is almost all scam or useless trash. Nice and clean text with pictures are priceless, thanks for your approach and great articles.

  3. Steve says:

    Hi Lance,

    Great blog Lance, thank you.
    Some good ideas brought forward by Ryan, as a trader I get so much out of other traders video review, trades, however there is just so much rubbish to sift through, the majority is simulated nonsense & the few that provide excellent real $$$ trades (example, Trader from Amsterdam) usually end up reducing the service dramatically due to the energy required to produce a good video with little to no return for their time. If you do put one video out per month Lance I’ll be watching it.

    Wishing all Traders the best
    Steve.

    Ps. If I had to use a calculator to prove that “I’m a person”, is Trading the right profession for me, lol😀

  4. Roxanne says:

    My vote is for no video if it takes time away from the method you currently use. There is too much time wasted in learning from a video. I love what you do now.

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