About: Lance Beggs

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Recent Posts by Lance Beggs

Managing Anxiety While In A Trade

Posted in: Trader | , by
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The following is a great question from YTC reader Aaron.

I thought this would be worthy of entry into the blog and newsletter as it's a question which will be relevant to anyone who allows discretion in their trade management plan.

And I'm really keen for anyone else to add their ideas and thoughts into the comments section of the blog post.

Question Received:

Super impressed with all your content. Do you have anything out there on managing your psychology while in a trade? I find I often deviate from my plan due to anxiety from who knows what.

My Response:

Hi Aaron,

Off the top of my head these come to mind:

(1) General psych content which may or may not offer something of relevance:

 

(2) Perhaps more targeted directly to your question:

 

But more importantly, give this a try. It's the general framework that I use whenever stuck with any problem like this:

 

Set aside some time and just brainstorm any and all options which might fit within these categories.

The fact is that there will not be a "one size fits all" solution for this problem of anxiety interfering with trade management. You might need to go through a process of trial and error.

So do the exercise and see what you come up with.

For starters, a few obvious ones:

AVOID:

  • Just go complete passive. Set the stop and target and walk away. Let it fall wherever it falls. (Not my preferred approach, but some people need this)

 

REDUCE FREQ/CONS:

  • Partially passive in that decisions and actions are ONLY made at certain times or price points. eg. the obvious solution here is when you only assess the trade on the close of each TTF candle. Inbetween these "decision points" you might find it helps to step away or look at other screens.
  • Closely aligned to the above idea, just push your chair back away from the screen immediately after the order is filled and initial stops/targets are set. Don't laugh. It's very effective. If you're out of reach of the keyboard and mouse, it's a whole lot harder to emotionally react.
  • Another option for "partially passive" is to actually split the position into two. One part is managed through a passive set & forget target. The other allows discretionary adjustment. Essentially you're diversifying your trade management across both styles. As a bonus it allows you to directly compare the impact of discretionary versus passive trade management and you'll clearly see whether or not you're adding to or reducing your edge.

 

Your turn. I'm sure there are a ton more. See what you can come up with.

Nice question by the way.

Happy trading,

Lance Beggs

 

 

One Trade Does Not Provide Enough Data

Posted in: Trading Business | , by
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I think it's time we revisited a topic we discussed a few years back. The fact that an individual trade does not provide sufficient data to allow you to make informed changes to your plan.

Changes MUST consider the impact across a series of trades.

I see this problem repeatedly in email conversation with new traders, who have not yet understood the nature of edge.

Their questions come in various forms but this latest one is typical of the general nature of all of these questions:

  • "I took profits on this trade at the target area, only to see it then continue on without me. I could have got twice the profit if I held. Do you think I should use a trailing stop rather than targets?"

 

The trade involved a 2R profit at the target, which could have been 4R if he held for a trail exit. An addition of 2R to the account balance.

And so the trader was disappointed. And frustrated. Because when viewed after the fact, it was just SO OBVIOUS!

But here's the problem:

<image: One trade does not provide enough data>

<image: One trade does not provide enough data>

<image: One trade does not provide enough data>

<image: One trade does not provide enough data>

<image: One trade does not provide enough data>

<image: One trade does not provide enough data>

This is the whole point of a post that I shared about a fortnight ago.

<image: Fight to get to the next level>

Progress comes from analysis and review of your performance over a series of trades. Not individual trades.

Changes to your plan must come from analysis of results over a series of trades, whether you prefer to use samples of fixed number (20, 50, whatever) or a fixed time period (weekly, monthly).

You ask, "I took profits on this trade at the target area, only to see it then continue on without me. I could have got twice the profit if I held. Do you think I should use a trailing stop rather than targets?"

Or even a more generic, "Do you think I should make "xyz" change to my plan?"

Here's my response:

  • Only if you're seeking an answer in response to a recognised problem or underperformance across a series of trades, and not one individual trade.
  • And only if your subsequent investigation of that problem or underperformance shows clearly that this change would have improved your edge over that series of trades.
  • If yes to both, then implement the change and see what it does to the next group of trades.

 

You have access to this information. Do the work.

Assess the outcome over a larger sample.

And determine the appropriate plan of attack for your next series of trades.

You might argue, "But Lance, we don't know how the change will impact the next series?"

True. No-one knows.

That is why you continue to assess. Make the changes and then reassess. Did they help? Or is further work required?

Continue to track performance. And continue to learn, grow and develop in pursuit of never-ending improvement in both profits and consistency.

But never due to an emotional reaction to one single trade. This is a game of profiting over a SERIES of trades.

Happy trading,

Lance Beggs

 

Related Articles:

 

 

A WARNING REGARDING SOCIAL MEDIA & MESSENGER SCAMS

Posted in: Other | , by
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There is a growing problem on social media of scammers impersonating trading educators and firms and then contacting followers to attempt to scam you out of your money.

Their accounts will usually be copied straight from the original (same profile photo and posts). So they look legitimate. The primary difference is usually a very minor change in the username. Something you won’t notice unless carefully looking for it, such as a slight spelling change or the addition of a character such as a hyphen, underscore, period/full-stop or perhaps a number.

Please note: I will NEVER make unsolicited contact with you via direct message to sell you any product or service. And no other "representative of YourTradingCoach" will ever contact you to sell you any product or service.

This includes signup for a particular brokerage or managed accounts. And access to exclusive coaching services or groups.

In addition, I will NEVER ask you to pay for anything via transfer of Bitcoin or any other crypto funds.

If you are ever in doubt, contact me directly through proper means such as the contact page on my website so that I can confirm the offer does not come from me.

Please take care online.

And if you come across any of these scammers (whether impersonating me or someone else), please advise the real educator or firm so that they can request their followers report and block the scammer. The more reports they can get, the quicker these scammers are shut down.

Thanks,

Lance Beggs.

 

 

Today – Anything Can Happen

Posted in: Trader | , by
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I sent out the following social media post last Saturday:

<image: E-mini NASDAQ - All Time Highs>

All-time highs in the NASDAQ! Incredible when you consider where we were just two months prior. And of course when you consider the current state of the world.

But that's the nature of markets. They don't care what we think.

So I thought I should expand upon two of the statements within that post.

"Are you able to reframe your beliefs to allow you to operate more effectively?"

"Can you separate your narrative about the world from your job of recognising and adapting to the actual market bias?"

Because, as an intraday trader, one thing that is absolutely devastating to your P&L is attempting to trade a personal feeling that is not aligned with the actual direction of the markets.

I can completely understand anyone who feels that "This market is so overbought. It doesn't make sense. The crash is coming for sure. This thing needs to go down."

I've been there myself.

And the feeling is not a problem. It's acting upon that feeling that is the problem.

It's positioning short when the market just continues on higher, caring little for you, your beliefs and your long-term viability in this trading game. That destroys accounts.

So the rally continued. Here's the NQ at the time of writing this article, about eight hours before the open on Thursday morning.

<image: E-mini NASDAQ - All Time Highs>

Success in intraday trading requires that you find some way to separate your FEELINGS about the market from your ACTIONS in trading the market. Leaving you free then to trade whatever direction the market moves, despite your underlying beliefs.

Here's a simple method I use:

Shift your beliefs and expectations further into the future.

In three steps:

(1) "I feel that this is so overbought that it just has to fall."

(2) "But that doesn't have to happen today. Maybe tomorrow. Maybe next week."

(3) "Today – anything can happen!"

So not only do I acknowledge my feeling and belief about potential market movement. I also allow it to be true.

But not necessarily today.

This frees me up to accept, recognise and adapt to whatever direction the market wants to go.

As shared in Wednesday's social media post:

<image: Freedom to adapt to actual market conditions>

Repeating for emphasis – "Being open to all three possibilities allows me the flexibility to adapt to actual market conditions. And to recognise and adapt to changes in sentiment and structure."

Because today (and in fact every day) – anything can happen.

<image: Monday>

<image: Tuesday>

<image: Wednesday>

Right now it's several hours before the open on Thursday. The markets feel even more overbought to me. But that doesn't mean it will fall today. It might. But it could also wait till Friday. Or maybe next week.

Today, anything can happen.

Becoming stuck in a mindset that the market SHOULD do one particular thing, just because you FEEL that it should, is poison to your account balance.

You have to find a way to separate your feelings about the market from your actions in trading that market. And then allow yourself to be open to all possibilities, ready to recognise and adapt your trading to the ACTUAL market conditions.

This is the plan that works for me – shifting my expectations forward in time. Hopefully it helps you as well.

Happy trading,

Lance Beggs

 

PS. Thursday update:

There's the fall I was expecting…

<image: Thursday>

<image: Thursday>

<image: Today - anything can happen>

 

 

When the Trap Entry is itself a Trap

Posted in: Trading Process and Strategy | , by
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Let's start by viewing the market right as it opens:

<image: When the trap entry is itself a trap>

<image: When the trap entry is itself a trap>

Readers of the YTC Price Action Trader have several principles they use for projecting the upcoming price swings and identifying areas of potential trade opportunity.

<image: When the trap entry is itself a trap>

<image: When the trap entry is itself a trap>

BUT WAIT!

There is something else that should be jumping out at you as relevant as well.

Something that we have discussed numerous times over the last couple of years.

That's right – it's a trap RIGHT BEFORE the regular session open.

See here if you missed the prior articles:

 

Here is the general idea:

<image: Traps Just Before RTH Open>

This is a feature of the open, long recognised through my daily Market Structure & Price Action Journal practice.

Traps just before the open can often provide nice follow-through, when the breakout fails in the opening price sequence.

<image: When the trap entry is itself a trap>

Wait!

What?

Why not today?

Because there is a price action feature that suggests the trap is itself potentially a trap.

It's IMPORTANT to look at the area the trap is moving into.

While normally I only put minor weighting on overnight price structure, there are some times it offers clear warning signs.

Like this:

<image: When the trap entry is itself a trap>

<image: When the trap entry is itself a trap>

<image: When the trap entry is itself a trap>

Let's move forward and see the outcome.

<image: When the trap entry is itself a trap>

<image: When the trap entry is itself a trap>

<image: When the trap entry is itself a trap>

A break of a significant level just immediately prior to the RTH open, or immediately after the open, should have you considering the potential for trap-driven opportunity. But just pause for a second and check the context. Does the pre-open structure provide a potential barrier to movement? The trap concept will still apply. However you might just need to widen the area and hold off on entry, until the barrier is also broken.

Because otherwise, you might find that the trap you're seeking to trade is itself a trap!

Happy trading,

Lance Beggs