I was thrilled to receive an email on Tuesday from a trader who has taken this recent YTC concept and achieved a new “first”.
His first ever 100 point runner.
Actually… it looks like closer to 110 but who’s counting!
From the email:
I don’t know if you remember me from earlier this year and our discussions about holding my winners and improving my average win size. I’m making great progress with this and have to share today’s chart. A F(edited)ING 100 POINT WINNER. My first ever. Hahaha.
Ignore the early entries. They’re poor. I’ve been trying something a little different and it hasn’t worked out like I hoped. The 9:45 trade is the winner. Holiday expansion context provided confidence to hold through to the Thu/Fri low support levels. The stall at support tried to shake me out but I stood my ground. The 10am news pushed lower for another leg until the trailing stop was triggered at the end.
It’s only the micros MNQ and 2 contracts but early days. The stats are improving and I’m gaining confidence month by month.
I had to stop after this trade. Too excited. Haha. I’ll need to work on that next.
Well that’s made my day!
The chart image is too large to fit here. I’ve reduced the size and added ENTRY and EXIT notes so that you can see the trade.
Absolutely awesome. Great work.
So let’s discuss “holiday expansion context” as he called it.
A part of my recommendation was that his daily study should focus on outsized moves in the market, aiming to develop rules for when to hold a position for either a trail exit or “further than usual” target.
And holiday expansion is no doubt one of these time when the market offers potential to run.
No guarantee. But the potential makes it a must-hold, until proven otherwise.
Read here first if you missed the prior article on Trading off Holiday Session Structure.
The day AFTER a half-day holiday session is one that I REALLY look forward to.
Firstly, emotion drives price. And one factor that intensifies emotion is time. It’s hard enough having to wait two days over a normal weekend to be able to trade again. But three days… just try to hold back those undisciplined, emotional masses.
And secondly, the old standard concept of “volatility contraction leads to expansion“. The start of the week is compressed into one tight little narrow range. And I can just about 100% guarantee you, the remainder of the week will not remain contained within that high and low. It’s expansion time!
So here is the state of play as the market prepared to open on Tuesday.
There was further opportunity for those that trade beyond the opening 1.5 hours. And then again the next day.
And then Thursday wanted to have a go as well…
Tight ranges offer great structure to lean against, regardless of the timeframe. But when it’s a WHOLE DAY… and visible to the whole trading community… the next day is one I personally don’t want to miss.
It provides a simple “line in the sand” from which I can extend a “bigger picture” daily bias.
And if the market is kind enough to not just gap away, it can provide nice trade opportunity as the market expands from this narrow-range state.
Test the idea with past (or future) holiday sessions. And see if you can also find edge around these narrow-range holiday sessions.
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One final point…
I’m reminded as well of this past article on the importance of maintaining a list of milestones – https://yourtradingcoach.com/trader/trader-motivation-hacks-number-2/
And using them to push yourself to new levels of performance.
100 points is achieved. Well done.
Increase your target now. Perhaps 200 points. Perhaps “Hold till the close”.
Set a target. And push to achieve it, when the market offers such opportunity.
Games like this are simple to play. And they work surprisingly well as a tool to maintain and enhance motivation.
Give it a try.