We all love those trades that move straight from entry to the target.

But unfortunately that’s not always the case.

Sometimes the market likes to remind us that it doesn’t give a damn about our expectations. And that it prefers to instead screw around with our mind and emotions, to see if it can chop us up a little first before then moving on to the target.

As much as you wish this wasn’t the case, the reality of price action is that it will often test, retest and even probe through levels to check the other side.

Your choice is to either accept this and learn to work with it, or remain ever frustrated as you sit on the sidelines with a loss and watch the market move to the target without you.

I think the better option is to accept it. And learn to work with it.

So let’s start with the summary lessons from a series of prior articles. Lessons which I believe to be an incredibly important part of all trader’s growth & development:

  • (a) It’s unrealistic to expect that every trade will go immediately to your target. Sometimes a trade idea will require multiple attempts.
  • (b) Two failures – stop and reassess. Reconsider the original trade premise, but also be sure to consider the idea that you are completely wrong. And also that maybe you have no idea of what is happening and need to stand aside.
  • (c) Three failures – time out. Wait for a change of structure and only then look for the next trade idea.
  • (d) And maybe… consider the idea that a key goal in your trading should be to not only know how to find quality trade ideas, but also to get good at surviving those times when the trade idea doesn’t quite match what the market is actually offering. Because sometimes… it takes multiple attempts!

These findings came from the following two articles, if you wish to review them in full:

(1) Trading BPB short on a retest of the prior day’s high resistance: Sometimes It Takes Multiple Attempts – 1

(2) Trading BPB short on a retest of multiple prior day’s highs and lows: Sometimes It Takes Multiple Attempts – 2

To be honest, this is so common that I could make this idea the ONLY blog post I produce each week.

So let’s look at another sequence from recent days.

<image: Sometimes it takes multiple attempts>

<image: Sometimes it takes multiple attempts>

<image: Sometimes it takes multiple attempts>

<image: Sometimes it takes multiple attempts>

<image: Sometimes it takes multiple attempts> 

See here for last-week’s article on the first scale-out exit.

<image: Sometimes it takes multiple attempts>

<image: Sometimes it takes multiple attempts>

<image: Sometimes it takes multiple attempts>

<image: Sometimes it takes multiple attempts>

<image: Sometimes it takes multiple attempts>

<image: Sometimes it takes multiple attempts>

<image: Sometimes it takes multiple attempts>

<image: Sometimes it takes multiple attempts>

<image: Sometimes it takes multiple attempts> 

Repeating:

  • (a) It’s unrealistic to expect that every trade will go immediately to your target. Sometimes a trade idea will require multiple attempts.
  • (b) Two failures – stop and reassess. Reconsider the original trade premise, but also be sure to consider the idea that you are completely wrong. And also that maybe you have no idea of what is happening and need to stand aside.
  • (c) Three failures – time out. Wait for a change of structure and only then look for the next trade idea.
  • (d) And maybe… consider the idea that a key goal in your trading should be to not only know how to find quality trade ideas, but also to get good at surviving those times when the trade idea doesn’t quite match what the market is actually offering. Because sometimes… it takes multiple attempts!

Happy trading,

Lance Beggs


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10 Comments

  1. Lovely!
    Failure to Continue.
    Classic Wyckoff Upthrust on the 2 BPB. Market probing for stop orders shaking out the weak short who enter too early. I find myself doing this type of trade as well.
    Really good lesson.
    Thanks Lance.

  2. Lance You are an enlightened trader. Your approach to trading does not give the market a single chance to take your money. Thank you for always sharing your thoughts, I constantly read your blog with interest and consider you my teacher who opened my eyes to the market.

    1. Thank you Hasan. Much appreciated. I can assure you though – the market does find opportunities to take my money from time to time. It’s all part of the game. I just need to make sure that when it takes my money, it’s less (on average) than when I take money from it. 🙂
      Best of luck with your trading,
      Lance.

  3. Hi Lance,
    Old blog but slighly perplexed, 2nd stronger probe up to 2 from what I would consider a small bof at precedent swing low. Then lovely bof at precedent swing highs and overnight high, I would have waited for some weakness at this level to fade short thereafter, why are you looking for a FAST rejection here, otherwise it’s standby for you and you wait for structure ? Hope my question is clear !

    1. From a “text-book perfect” perspective I’d wait for the rejection and then a weaker retest, as you’ve suggested. It’s also the more conservative option. The more aggressive option is to recognise a “failure to continue” higher as a sign of bullish weakness. Thought process: (a) Given the BOF at the swing low that you identified and the apparent strength on the move to break higher, all reasonable expectations are that this would break and continue higher. (b) But then the break doesn’t continue higher. It stalls. Then rejects. (c) Whatever bullish strength existed on the push higher, is not attracting new buying after the break. (d) As it rejects, I’ll take one more attempt at my short premise.

      Sometimes “what the market doesn’t do” is more important than “what the market does”. And often it allows an earlier entry into the trade.

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