(1) My Focus is on the Metagame
Most price action traders are focused on the patterns that result from price movement, in the expectation (hope) that these patterns will lead to further price movement, just as the textbooks say they should.
But what they're missing is the deeper level of understanding.
I don't play this game.
I play the metagame.
A metagame is most simply defined as "the game behind the game". It's the game outside of the obvious rules where the player makes decisions based upon what their opponent is thinking and how you expect them to act.
This is the real game in trading. It's not the technicals which move price. It's not the fundamentals. It's orderflow. And that orderflow comes from the decisions and actions of the other market participants.
Learn to find the times and places on the chart where other market participants will act, through fear or greed, and you've found an edge in the markets.
What I'd like to share today is the very first article I wrote introducing this topic, way back in 2009.
It's also my favourite YTC article of all time.
Check it out here:https://yourtradingcoach.com/trading-process-and-strategy/rock-paper-scissors-a-trading-analogy/.
(2) My Focus is on Market Structure
I'm not a pattern trader. I don't believe that works. At least not the way that most teach it.
It's the easiest thing in the world to sell the idea of a simplistic pattern-based approach… "Here are the patterns, now just sit back and wait for them to appear. Oh… and be sure to only take the higher probability ones."
All the educator then needs to do is to blame failure on the customers lack of discipline… "No, that's a lower probability one due to factors x,y and z. See how you'd be better if you passed on that one and traded this other one over here!"
What a load of BS!
What most of these educators are missing is the importance of context. Patterns are fine if you want to trade them. But they must be traded within the appropriate context.
There are numerous ways that this can be done, but my preferred approach is through an understanding of the market structure. Where is the current price movement (or pattern) occurring within the higher timeframe S/R framework? What is the nature of the current environment (trendiness, strength/weakness, volatility, thickness, liquidity etc). How will that influence the decisions and actions of other market participants? Will that provide trade opportunity or are we better standing aside?
I'd like to now share another piece of YTC article history.
This article does not "teach you" market structure (there's a whole lot of that if you just search my site or use the Market Structure tag in the tag list on the RHS of the site-map).
Instead it does something much more important. It sets in place one of the foundations that you'll need for "teaching yourself" to read and exploit market structure. Because market structure, like the price action that flows within it, is not a "one off" learning process, but rather a life-long process of skill development.
Here's the article: https://yourtradingcoach.com/trading-business/the-greatest-trading-book-ever/.
(3) My Focus is on Real-Time Bar-by Bar Analysis
By now you might have realised that I'm not a typical pattern trader. Rather, being a price action trader for me is more a process of learning to read the shifting sentiment of market participants in all price action. Not just in those sequences that match a pattern in our text book.
To demonstrate this concept I'd like to link to two articles.
While the process that I use is a little different to that shown within the articles below (I use a multiple-timeframe approach rather than single-timeframe as shown), the articles do serve their purpose in providing an introduction to a different (and I think better) way of trading price action.
You can find the first here: https://yourtradingcoach.com/trading-process-and-strategy/advanced-candlestick-analysis-part-1-of-2/.
And the second here: https://yourtradingcoach.com/trading-process-and-strategy/advanced-candlestick-analysis-part-2-of-2/.
(4) My Focus is on the Business Aspects of Trading
Trading for a living is not just about strategy.
There are many business aspects that are just as important, if not more important:
- Documentation – Trading Plan, Procedures Manual and numerous others!
- Contingency Management Planning
- Money Management Planning
- Daily, Weekly and Monthly Routines
I'd like now to share with you two prior articles that provide a sample of a Pre-Session and a Post-Session Routine. Hopefully you find them to be of value.
You'll find the Pre-Session article here: https://yourtradingcoach.com/trading-business/my-pre-session-routine/.
And the Post-Session article here: https://yourtradingcoach.com/trading-business/my-post-session-routine/.
(5) My Focus is on Process
One of the annoying things about most writing on trading is that it simply focuses on the entry signal. The reality though is that the entry is just one part of the whole process. Yes… trading is a process… from identifying the market structure right through to trade management and exit. It's not just about getting a good entry signal.
So let's look at two "image based" articles which demonstrate the whole process.
The first: https://yourtradingcoach.com/trading-process-and-strategy/its-a-process/.
And the followup article: https://yourtradingcoach.com/trading-process-and-strategy/its-a-process-2/.
There are a couple of more "It's a Process" articles as well if you wish to search through the site archives – https://yourtradingcoach.com/site-map/
(6) – My Focus is on… Well… So Much More!
In the article above we've discussed a few trading topics which I believe make YTC somewhat unique in the trader education world.
My intent was to give you a "Top 5".
But the fact is that there are so many more articles in the YTC archives that could easily have been included in that Top 5. It was not an easy process to narrow the list down (currently at over 700 articles).
So let's list a few of the topic ideas which came close to being Top 5, and provide links to some of the articles.
This will not be an exhaustive list of articles on each topic. Just a few of my favourites. If you're interested in the topic, click through and have a read! 🙂
My Focus is on Traps:
- Gaining Confidence in Taking the Trap Entries (Part 1 of 2)
- Gaining Confidence in Taking the Trap Entries (Part 2 of 2)
- Traps Against Bias
My Focus is on Buying Well Before the Standard Retail Trader:
- When Struggling – Return to First Principles
- Buy Because There Are No More Sellers
- Things Do Not Change – We Change
- Buy Because There Are No More Sellers (With Lower Timeframe)
My Focus is on Active Trade Management:
- Active vs Passive Trade Management
- Active Management and Defensive Exit – An Example
- Active Trade Management – Reassessing Risk and
My Focus is on Exit Strategy:
- The Importance of Exit Strategy (Part 1 of 3)
- The Importance of Exit Strategy (Part 2 of 3)
- The Importance of Exit Strategy (Part 3 of 3)
My Focus is on Trade Results over a Series of Trades:
- Individual Trade Results Are Irrelevant
- You Have Too Much Focus on Individual Trade Results
- Stop Hoping Your Trade Will Win
- Trade Management is More Important Than Trade Entry
My Focus is on Losing Well! 🙂
My Focus is on The Trader:
- Trader Fatigue Management
- How Can I Get More Discipline? (Parts 1 and 2)
- Creating the Conditions for Success
You want more?
Check out the archives via either the Site Map, or the search box, category list and tag list on the right hand side of the Site Map. Or just skip back page by page through the blog.
Enjoy your reading!
(7) – One Final Thing
If this has you interested in how I trade… here's an intro to the YTC Price Action Trader:
|Instant PDF download|
|590 pages of quality trading education|
|Including 377 charts and diagrams|
|PLUS NOW WITH 2 BONUSES – FAQ Document (2 volumes) + 42 minute mp4 video (Future Trend – Simplified)|
Who is it for?
|The YTC Price Action Trader is for the discretionary price action trader.|
|It was written for those who trade the futures or forex markets on low intraday timeframes (3 min chart). However, price action principles are applicable in all markets and all timeframes, provided they offer sufficient liquidity to ensure smooth price flow (ie. don't trade them on illiquid penny stocks which gap all over the place) and sufficient price range to allow profits after costs.
So the method can be adapted if you trade other markets or higher timeframes.
It's not for those beginners who are seeking certainty in the markets through a systems approach, or through simplistic patterns. It's for those who have moved beyond that.
The YTC Price Action Trader is for the more advanced trader, who recognises that trading success comes from learning to adapt to and operate in the uncertainty of the market environment.
It's for people who understand that a real edge comes from:
What Topics Does it Cover?
Be sure to check out some of the many testimonials… 🙂
- Page 1: https://yourtradingcoach.com/ytc-price-action-trader/testimonials-page-1/
- Page 2: https://yourtradingcoach.com/ytc-price-action-trader/testimonials-page-2/
- Page 3: https://yourtradingcoach.com/ytc-price-action-trader/testimonials-page-3/
- Page 4: https://yourtradingcoach.com/ytc-price-action-trader/testimonials-page-4/
- Page 5: https://yourtradingcoach.com/ytc-price-action-trader/testimonials-page-5/
- Page 6: https://yourtradingcoach.com/ytc-price-action-trader/testimonials-page-6/
- Page 7: https://yourtradingcoach.com/ytc-price-action-trader/testimonials-page-7/
- Page 8: https://yourtradingcoach.com/ytc-price-action-trader/testimonials-page-8/
Or how about I just put the first one here…
What an oasis to find in the desert of trading education! As I read through the 6 volumes of Lance's new e-book there was a constant stream of "wow" and "aaah…that makes so much sense".
If you are looking for a complete educational manual on how to trade, look no further. Lance has blessed the trading community with a stunning e-book. He gives you the big picture and then takes each piece and breaks it down into clear, understandable and logical parts.The detail is incredible, loads of charts and bar by bar analysis.
No stone is left unturned, Money Management, price action, psychology, trade journals, even how to set your monitors up for optimum use! Volume two on "why price moves" is worth the price of the book alone and this is before you even get to the 250+ pages on the actual strategy or the other 5 volumes!
The whole book is permeated with Lance's desire to give you the best opportunity to make it as a trader. His care is evident with the exhaustive micro level detail yet all set in the bigger context. The concise summaries at pivotal points make for easy reading. This naturally flows out of Lance's exceptional ability to make what could be complex and confusing to explain through the written media, an example of clear thinking, the mastery of his subject and an unusual gift of communication.
All that said, the one word that sums up the YTC Price Action Trader for me is the authors – "integrity" – it shines through everywhere. If like me you are weary of the snake oil salesmen that seem to be behind the majority of Forex or Trading education you will feel safe allowing Lance to guide you on this exciting journey, that with the wrong guide, is fraught with danger.
Simple – buy the e-book – you deserve the best and stop the endless searching. Let Lance patiently and realistically give you the best chance to make your dream a reality. Stop learning disjointed parts of strategies or trying out new indicators……learn how the markets work and trade the YTC way.
Individual results may vary. A testimonial provided by one client may not be representative of all client experiences. Past performance does not guarantee future performance.
Click below for more information…
Very interesting. To summarise what I see here:
Simply, so many people just identify a level and go short or long there. This is NOT trading. Real trading is watching / understanding what is going on at that level. Guess what time frames this can be achieved on? Well, you would have trouble seeing any order flow clues with bars that close and open once an hour. By dialling down we can see more structural detail. Now compare that approach with the moronic mentality associated with just buying or selling When price hits a predetermined level. (Yes I used to be a moron, but there are only so many times one can get kicked in the face without adjusting something!
Ha ha! Yes, I’m sure we all go through the stages of “blindly” buying and selling at support or resistance levels. Much better, I think, to look inside the larger candles to really experience HOW price is moving as it approaches and leaves the area.
I see in a previous comment that you mentioned the market being structured to cause pain and misery. I agree completely. Hence my approach – find those who are experiencing pain and misery (or about to) and trade against them! 🙂
PS. Thanks for all your positive feedback and support in recent days! 🙂
No problem at all LB. I have myself been through the grinder re longer frame people dissing the best approach to take. I am sure it is simply because there are many personalities out there who can trade but dont want success for others. Umfortumately for them it only galvanized me for the long haul! Im just very pleased tohave found a respected educator whos approach vindicates what i have learnt from my mentor, which i had to trust as correct for a long yime begore i evidenced iy myself with consistent results. The irony is i only found this site after i proved it worked myself. As such i hope my comments may help other get on the right track early, at this station
Hi Coach Lance,
I trade on much higher time frame, weekly. Will your course material still relevant? Thanks.
Trading longer timeframes – https://yourtradingcoach.com/trading-process-and-strategy/trading-higher-timeframes/