Every day you should look for one quality trade opportunity and study it. Print it out, review it, learn from it and file it in your Trades Journal.
It doesn’t have to be one you traded.
If it is, that’s great.
But it doesn’t have to be. There is still opportunity to learn.
It doesn’t even need to be in the markets you trade.
I look at several markets for my daily “trade” lesson. Primarily CL and TF because they’re my current focus for trading. But I also have a quick scan through ES, SPI and GBP/USD. And any others that may have significant news influence.
Here’s one from last Monday which I particularly love, from the Australian SPI futures market.
What do I love about this?
It’s an emotional event.
Anyone holding a LONG position with a stop held below A, is now stopped out.
Anyone with a pending order awaiting entry SHORT below A, has now entered the market.
Of particular importance though is the fact that (a) it occurred right near the end of the session and (b) there was evidence of buying pressure following the break.
These traders now have a whole weekend to stress out, wondering whether their LONG was stopped out prematurely, or whether their new SHORT will follow through on Monday morning.
Having experienced this kind of overnight stress many years ago when I operated with longer timeframes, I know it doesn’t feel good.
Watch for significant breakouts late in a session. It doesn’t have to be prior to a weekend. Even just overnight is fine. These are emotional events. And emotional events can at times provide good trade opportunity early in the following session.
Let’s look at the charts on Monday morning.
Watch for significant breaks late in a session. These are emotional events and can lead to good trade opportunity early the next day.