When Struggling – Return to First Principles

Struggling with your trading?

Always return to first principles and confirm that you're trading approach is consistent with these principles.

From a trade entry perspective, this would include the following:

  • You must aim to BUY at areas where you know others will buy after you, because their buying will create the net orderflow or bullish pressure to drive prices higher, allowing you opportunity to profit

  • You must aim to SELL at areas where you know others will sell after you, because their selling will create the net orderflow or bearish pressure to drive prices lower, allowing you opportunity to profit.

(Why… see the YTC Price Action Trader, Chapter 2)

(How… see theYTC Price Action Trader, Chapters 3-5)

Buy before others will buy!

Sell before others will sell!

If you're struggling, ask yourself honestly whether or not your entry method is consistent with these principles. If not… well you've seriously got to reconsider your trading plan.

Buy before others will buy!

Or if it helps, consider it from the opposite perspective… buy because there are no more sellers.

When struggling, return to first principles

When struggling, return to first principles

Sell before others will sell!

Or if it helps, consider it from the opposite perspective… sell because there are no more buyers.

When struggling, return to first principles

When struggling, return to first principles

When struggling, always return to first principles!

Buy before others will buy!

Or if it helps, consider it from the opposite perspective… buy because there are no more sellers.

Sell before others will sell!

Or if it helps, consider it from the opposite perspective… sell because there are no more buyers.

Happy trading,

Lance Beggs


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YourTradingCoach - Admin

4 Comments to “When Struggling – Return to First Principles”

  1. Roy says:

    Hi Lance
    A question regarding the first chart. Taking the information up to candle D, would I be wrong in having a bearish bias and if so why not take a short on candle D after the prior candle made a failed break against my bias. It would have been a loss but then I see another entry short the fourth candle after candle D. It’s not until candle E that I would rethink my bias. I understand that there is high volume to the down side which equals strength yet I also understand that this would create order flow when their stops are hit on any break to the up side. Without the benefit of hindsight, am I wrong?

    • Lance Beggs says:

      Hi Roy,
      Looking at this with hindsight I’d have no major objections at all to someone seeking an entry short on candle D. Had sentiment in fact been bearish it could well have followed through lower and provided a nice trade, especially if it broke to new session lows. This is a long time ago so I don’t exactly remember my thinking at the time. Perhaps I was partly influenced by the fact that the markets were significantly rangebound in weeks leading up to this trade, combined with the fact that the news release probed lower, then higher, then lower again, failing to follow through in each of these cases. I’d say that most likely, given this price action and failure to follow through, I probably made a very early call that this is likely rangebound action and so was looking for a trap long as price tested the lower regions of the range (as per the article). But certainly… I could well have got it wrong… if sentiment was bearish and it followed through lower from candle D as you suggested. In that case, I guess we just wouldn’t have seen this sequence of price movement in the blog because I would have missed the setup. πŸ™‚
      Lance

  2. Grant says:

    Lance. Thanks for your posts. Your insight is so very helpful.

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