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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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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 🙂