From YTC Facebook:
Posted Wednesday 4/6/14:
It’s psychologically draining to enter a trade and then watch it almost immediately move to drawdown.
But here’s a fact… the best entry technique for any particular trade CANNOT be known until the trade is over and reviewed with the benefit of hindsight.
We can’t expect to pick the optimal entry point every time.
Is it therefore not reasonable to expect that a good proportion of your trades will move to a worse price after entry?
Here’s one way to help with this psychological pressure… expect it!
Assume your entry will always be early and price will pull back further to retest the prior swing highs or lows.
Consider how price should behave if the trade premise is still valid and the swing highs or lows should hold. And how should it look and behave if it is likely to take out the stop.
Pre-considering the worst case scenario helps you to hold during drawdown if price action is such that it still supports your trade premise.
Posted Thursday 5/6/14:
Yesterday we discussed one strategy that can help with the psychological pressure post-entry.
If you find you’re scratching your trade too often or too soon, then amend your entry procedures to include walking away or turning off your monitor for (at least) the duration of the first trading timeframe candle.
So if you trade on the 5 minute chart for example, enter your trade, then walk away for 5 minutes and clear your mind.
Simple… but very effective!