International football (soccer) is one of the few things that I will allow to interrupt my trading.
I have no idea why I would encourage such masochistic behaviour. Following Australia in the international arena is more often than not a frustrating and disappointing way to spend my time.
But it is what it is.
And so on Tuesday, with a World Cup qualifier kicking off shortly after the market open, I planned to watch the first half and then reassess.
Half time report – 1-nil – not a great lead but we’re in front and controlling much of the game.
So let’s trade, with the remainder of the game streaming beside me. Poor practice, but a classic example of “Do what I say, not what I do”!
This puts us in the situation discussed a few times in the past. Trading AFTER structure has formed.
The disadvantage for me is minor. I simply miss the market open which is my favourite time of the day.
The advantage, as discussed in the prior articles, is that much of the opening uncertainty will have resolved itself. You now have clear structure in place. And a clear and obvious plan.
We’ve avoided the uncertainty of the open.
The structure is clear.
And we have a simple plan.
Now, it’s just a matter of letting the data unfold bar-by-bar. Trading if our projection sets up correctly. Or amending the picture if something else forms.
One and done!
I’d thought about calling this article “Targeting the High of Day (or Low of Day)” with the message being that these can be great trades because of the real potential for range expansion.
But I think a far more important message comes from the series of “Trading after Structure has Formed” articles.
Because I suspect most traders are not suited to the uncertainty of the action at market open.
And so it’s ok to delay the start of your session.
Trade on your terms. Not the markets terms. Just because the market opens at 9:30am (or whenever yours opens) it does not mean you have to trade from that time.
Check your stats. If you underperform at the open, delay your start.
Let some opening structure form first. Perhaps the first TTF swing. Or perhaps a fixed period of time (5m, 15m, 30m, or even the opening hour).
And THEN trade. Once the structure has formed. And once the plan becomes clear and obvious.
The Australian football team provides enough frustration for one life (full time 1-1). Don’t make your trading any harder than it needs to be.
PS. References for the Sideways Trend definition and the Fourth Principle – See Here