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Identify a potential trap |
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Feel the pain |
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Spring the trap |
Lance Beggs
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Identify a potential trap |
![]() |
Feel the pain |
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Spring the trap |
Lance Beggs
“Knowing where the trap is – that’s the first step in evading it.“… Frank Herbert, Dune 100% true. And in trading, we can take this further. Knowing where the trap is allows you opportunity to profit as the trap is sprung. Let’s look at a recent trap provided in the E-mini Nasdaq charts. A fairly…
Metagame Entry – Recognising that entry is not just about price or patterns, but about the people behind the price and patterns. And in particular the times when they’re experiencing frustration, pain and disappointment. Because the best opportunity comes when I can feel someone on the other side of the market getting it REALLY wrong….
You’ll find in many trading books, websites or courses a statement to the effect that ‘price rises because there are more buyers than sellers’, or ‘price falls because there are more sellers than buyers’. While I understand what the author is trying to say, it’s not quite correct. There are not more buyers than sellers,…
One of the absolute best ways I like to see price set up for a TST/BOF trade at support or resistance is when price has to move a LOOOONG way to get there. It can snap back nicely should the breakout fail. Think of a rubber band, stretched tight. And then released! We looked at…
Fact: There is a disconnect in the mind of the novice trader. They know that not every trade will win. But upon entering a trade, they desperately hope that it will win. Hoping your trade will win increases the potential for poor trade management. Hoping to win means difficulty taking a loss. Hoping to…
From time to time I get asked how I add to positions. That is, entering a new trade while the prior trade is still open. So I thought it might be a good idea to outline my response here. Then I can just link straight to the article in future. (Time management WINNER!) The…
Simply Awesome…We could be profitable only when we feel other traders fear,greed,pain…Thanks
Thanks Anand, I’m glad you enjoyed this article. 🙂
Lance, this post means a lot but I read it too late, this was 100% me trading EUR/USD on Friday and how I wish I had read your post in the morning before my trades after the NFP.
If I had read this before 9am like I normally do, it would have been a totally different story.
I had quite a few chances to get out of a few loosing trades withought incurring any losses and sometimes even with small profits when the looses reversed back in my favour but I refused. 100% stubborn.
Thanks again. Learning as usual
It’s a never-ending learning process! 🙂
Great article and examples, thank you for illustrating metagame!
FWIW, understanding and applying this concept to trading was the most important step I ever made. Increased–but consistent–profits, while tremendously decreasing stress.
Thanks Chris, I appreciate the great feedback.
I’d say that understanding the metagame concept was also perhaps the most important paradigm shift in my own growth and development. I’m glad to see that you have found the same.
This is Great, loved it.
i have a small question; when entering the position against the trapped traders, shall we look for signals like pin bar, engulfing, etc? or are we supposed to just enter on the break of the critical level?
I use a concept called LWP which is described in the YTC Price Action Trader. It’s not described on the website, sorry.
The aim is to get into the market no later than the LWP point, through whatever means you determine most relevant to the current context of the market. This might at times be a pattern break, as you’ve suggested. But other times, in a different context, entry might better be achieved through a limit order at a more wholesale price area. It all comes down to context and real-time reading of the market.
http://www.ytcpriceactiontrader.com/
Ok got it, thanks Lance 🙂
Mr. Lance, this concept is very excellent and practical. It’s true that this is a possibilities game, but understanding such concepts and practicing to get better at it can provide +A entries.
Since I got acquainted with Metagame and the trapped of other traders, I focused more on it, and the result is satisfactory for me, and I try to improve every session.
I know it’s easier said than done live, but with practice, good things happen
Thank you very much for sharing these concepts
Thanks Ari.
“With practice, good things happen” – that’s a great reminder to display next to a monitor.