It sounds obvious, doesn’t it. Start the day with a quality trade!

Ideally, every trade we make will be a quality trade.

But the reality is that there are times when we are not 100% in sync with “good practice” and find ourselves at the mercy of our excitement and desire to trade.

It’s our job to know when these times exist. To remind ourselves of this risk before the session commences. And to put in place controls to slow down our potential to overreact and jump into the markets.

For me… the first day back from holidays is a day when I have often found myself overtrading. Excited to be back. Eager to trade.

And far too often jumping into trades that have me scratching my head when viewed post-session.

Hence my social media post on Monday:

<image: First day back - PATIENCE>

Yes, many (or even most) of my social media posts are reminders or notes for myself. It’s just nice that others seem to benefit as well.

The red text on the image provides one solution to slowing down our potential over-reaction. Pre-trade, pause and confirm this trade idea is of sufficient quality that you’d want to take the trade, even if limited to only one trade this hour.

But here’s another simple method I use pre-session, to help reduce the risk even further.

I limit my playing field.

I use the higher timeframe chart to define areas where I expect a higher chance of favourable conditions. And areas where this is a little less certain.

Areas where I will actively engage the market. And areas where my plan is to sit back and relax and wait for new structure to unfold.

None of this guarantees a winner. It has potential to increase the odds. But the real gain for me is that psychologically, it’s helpful to see that my first trade back from a break at least looks like an A+ quality trade from a review perspective. Win or lose – let’s start with a quality trade.

<image: First day back - PATIENCE>

<image: First day back - PATIENCE>

<image: First day back - PATIENCE>

<image: First day back - PATIENCE>

<image: First day back - PATIENCE>

<image: First day back - PATIENCE>

<image: First day back - PATIENCE>

<image: First day back - PATIENCE>

<image: First day back - PATIENCE>

<image: First day back - PATIENCE>

<image: First day back - PATIENCE>

I can promise you this… it will NOT always work out that good.

It’s simply an approach I’ve implemented over the years to reduce the risk of rushing into poor quality trade opportunity on my first day back from a break.

If the idea of limiting your playing field appeals to you, then maybe you want to consider this idea:

<image: First day back - PATIENCE>

Today’s key lesson:

There are times when we are not 100% in sync with “good practice” and find ourselves at the mercy of our excitement and desire to trade.

It’s our job to know when these times exist. To remind ourselves of this risk before the session commences. And to put in place controls to slow down our potential to overreact and jump into the markets.

Patience!

Limit your playing field to the better sections of higher timeframe structure. And do all you can to start the day with a quality trade.

Happy trading,

Lance Beggs


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