I’m certain there are not many “jobs” at all where people look forward to Mondays. Trading is the only one that I’ve found.
Even more so when I’ve been away from the markets for a while.
So this was my social media post sent out pre-session on Monday. A little reminder to slow down and take my time. Let some structure develop first, confirm conditions are favourable, and only then engage the markets.
Click on the image if you want to read that article. But otherwise, read on…
One of the ways I choose to “slow down and wait” is through limiting my playing field.
- Look to your higher timeframe structure and define areas with potential for more favourable conditions. And areas with potential for less favourable conditions. Our aim is to trade the former. And avoid the latter.
- If the market opens in the no-trade zone, sit back and watch and wait. Use the time to get in flow with the price movement. And to prepare yourself so that when the market does move into your trading zone, you’re focused and ready to exploit any opportunity.
- If the market opens within the trade zone, allow the first 1-2 swings to play out. Confirm favourable conditions. And only then engage the markets.
In other words – use the higher timeframe chart to block off sections to trade and sections to avoid.
None of this guarantees a winner. In fact, none of this even guarantees more favourable conditions.
But the clear space of the higher timeframe structure perhaps increases the odds slightly.
And more importantly, provides a “no trade” zone right from the open, to allow me time to settle myself. To get focused and in sync with the pace and volatility of the price movement.
All subject to change, of course, as new information unfolds at the right hand side of the screen.
But today… no change required.
You know what to do here.
The Sixth Principle is in play and we’re seeking opportunity LONG from the dual-level resistance.
Or should the market break straight through without retest opportunity, we shift the plan and seek entry in accordance with the First Principle.
It’s incredibly calming to have no expectations of trading. No “need” to trade.
Sit back. Relax. Get a coffee if you want to.
Let the market play in the “no trade” zone, while you take the opportunity to just flow with price. Get in sync with the movement, the pace and the whole general feel of the market.
So that when price does move into your play-zone, you’re in sync with the market, reading it well and more likely to identify quality trade opportunity.
Give it a try, if you suffer from FOMO and emotional overreaction on the first day back from a break.
Or if the idea of limiting your playing field appeals to you, then maybe you could consider treating every day as if it’s your first day back from a break (see the PS section below).
PS. I’m reminded of these prior posts as well.
Firstly this one…