Sometimes the structure and price action are easy to read and easy to trade.

And sometimes it’s a real challenge.

But it can always be made that much harder when we impose our own ego and beliefs upon the market at a time when they just don’t align.

Case in point – I hate all-time-highs. Something inside is just screaming out to fade them. All the time.

Even generally, I’m not a fan of trading LONG. It’s never comfortable. Whereas SHORT just feels right.

But all-time-highs! They are the worst!

I don’t expect I’ll ever completely eliminate this. I’m human and we all have our weird little quirks. This is one of mine.

I’ve gotten better with time and experience. But what I’ve learnt is that the trick is not to worry about eliminating this. Instead, I need methods that allow me to properly align with the market DESPITE my internal discomfort.

<image: Aligning with the market DESPITE my internal discomfort>

<image: Aligning with the market DESPITE my internal discomfort>

We did quite a few articles in recent years on traps late in the pre-session, or very early in the daytime RTH session. My expectations are that they fail, until proven otherwise.

(The best way to find these articles, and anything similar, might be to search through those containing the tag: Traps)

So here’s my plan…

<image: Aligning with the market DESPITE my internal discomfort>

<image: Aligning with the market DESPITE my internal discomfort>

<image: Aligning with the market DESPITE my internal discomfort>

Ok… pause… step back from the mouse and charts… laugh at myself… forgive myself… step forward and REFOCUS.

Rookie error!

Let’s be clear here. Rationally, it’s completely obvious what I did wrong, allowing myself to act upon internal feelings while completely ignoring information provided by price.

But it’s still damn uncomfortable.

Thankfully, I’ve learnt that I don’t need to eliminate this feeling. I’ve found a method that allows me to properly align with the market DESPITE my internal discomfort.

I simply allow myself to be right (“the market is still going to fall”). I’m just wrong with the timing (“it’s just not happening today”).

Originally discussed here – https://yourtradingcoach.com/trader/today-anything-can-happen/

And referenced again in a followup one month later – https://yourtradingcoach.com/trader/followup-to-today-anything-can-happen/

From that original article:

– – –

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.

– – –

<image: Aligning with the market DESPITE my internal discomfort>

<image: Aligning with the market DESPITE my internal discomfort>

<image: Aligning with the market DESPITE my internal discomfort>

Happy trading,

Lance Beggs

 


 

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2 Comments

  1. Well said.. It is an area I struggle with as a Novice Trader. I’ve identified it and currently working to improve on this. Brett Steenbarrger’s book, The Psychology of Trading which I am currently reading has been quite insightful.
    Thanks Lance for your value-added inputs.. We owe you a debt of gratitude

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