The following social media Q&A shares an incredibly important realisation by this trader.

Perhaps a realisation that will also help you with your journey.

<image: Trading after Structure has Formed>

And my reply:

<image: Trading after Structure has Formed>

I’ve focused a LOT on the market open in my articles over the last two years.

Not because it’s better. But simply because that’s where my own trading has evolved.

The open fits my lifestyle better (I can get to bed by 3-4am rather than 5-6am).

The open fits my personality better (quicker action, more immediate feedback).

But it’s NOT the only way. It’s just my way.

And an incredibly important part of YOUR journey is in finding the place within the markets that best suits YOU.

You don’t need to become me. You can’t become me.

Find the place within the markets where you fit the best.

The strategy adapts to fit whatever conditions you prefer to trade. Or more importantly, the way you implement the strategy should adapt to fit the conditions.

And for some… that will not be the open… but rather waiting and trading ONLY after structure has formed, when pace and volatility might be a little more subdued and context just a little more obvious.

I didn’t trade this week. As discussed on social media I started my Christmas and New Year break a few days early. But let’s look at the action from today’s session (Monday 21st December, 2020) as it relates to this issue of “finding your niche within the markets”.

<image: Trading after Structure has Formed>

<image: Trading after Structure has Formed>

<image: Trading after Structure has Formed>

<image: Trading after Structure has Formed>

<image: Trading after Structure has Formed>

<image: Trading after Structure has Formed>

<image: Trading after Structure has Formed>

<image: Trading after Structure has Formed>

<image: Trading after Structure has Formed>

<image: Trading after Structure has Formed>

<image: Trading after Structure has Formed>

<image: Trading after Structure has Formed>

<image: Trading after Structure has Formed>

<image: Trading after Structure has Formed>

Trade the open, where opportunity comes fast and decisions are made on incomplete information?

Or let some structure develop first, where you have some more information and some “real” levels to play off?

There’s no right or wrong. Both can provide opportunity. Neither are necessarily “better”. They’re just different.

Find the way that best “fits” your needs and your personality.

Perhaps you will prefer the open. Perhaps you will prefer to wait for the opening range, for just a little structure. Perhaps the Initial Balance, allowing the full opening auction to play out.

Maybe you’ll even find your sweet spot after letting the bulk of the day play out and then trading the last hour into the close?

Or maybe you will find that you love it all and prefer to trade the full session.

If you’re unsure which, schedule a fortnight or so for each option and see what feels most comfortable. Ultimately, trial and error is the best way.

Let me close with a comment on this section of the opening question – “it is sort of difficult to trade the open unless you sort of specialize in it”.

This is true. But it’s missing a key point.

Regardless of what structure you wish to trade from, or what time of day you choose to trade, you still should aim for specialisation.

You still need to put the work in to understand how price trades at this time and where the opportunity and risk presents itself.

Happy trading,

Lance Beggs

 


 

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2 Comments

  1. sir,
    my trading style improve when I realise trader make decision , my work is understand which type trader they are ( like novice , pro trader but short term , confusion create between trader before reversal , professional trader or retail trader both ,only professional no retail trader etc. ) . I make premise ahead according to which type of trader they are like ,this type of trader react such a way ( context, environment play important role ) .

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