Trading the price action is the key to being consistent in the market as the price will lead you to take action at key spots on the chart where you hold the trading advantage. Knowing where those spots are is the key that can unlock the door that traders are seeking.
Having a road map to help show you the way is a great extra tool that can confirm the actions you take. Knowing that you are following a trading road map, can bring comfort and confidence to your trading decisions, because it will immediately tell you if you are on track or steering off chorus.
We never have to guess what is going to happen next but just interpret it as it comes. Long or short trades makes no difference as the price action unfolds. Our job is just to read the likely path of price and then position ourselves to go with it. There does not need to be a struggle, but just the opposite, a smooth flowing move that leads and lends us the trading advantage time and time again.
second half of the Tuesday’s session below;
Today, Wednesdays session below;
Above is my trading sessions for the last two days. Yesterday I traded most of the session with a few small breaks in between and it worked out very well. I rarely ever do that, but felt like I should try it. I did, and was somewhat exhausted at the end. That reminded me why I don’t often do that, as it is very draining. Today’s session was much better with many more trend trading opportunities, but yesterday was the day I choose to hit it harder and that is fine.
Yesterday, I picked up better than 8 net S&P emini points as I went 9 for 11 with only two small losses. A good day by the numbers, but I did feel the fatigue as the session went on. I got very conservative a few times, when I could have loosened up, but I won’t cry about any of it. It is work to stay at the trading screen and hit the trades, but it also takes a great deal of stamina and trade discipline to continue to follow your trading plan through the whole day.
Trading fatigue is very easy to set in and with it, trading mistakes. This is something many traders overlook and are not aware of. When you are tired, your guard is down and with that, your trade discipline is also down. If you make a mistake, it is very easy to try and get even, when the price action does not warrant the action taken. You are then being driven by emotion and that can be dangerous.
This is a very good reason to keep your trading sessions short and get what is reasonable from the session. This is also a good reason to close things up, so you can end the day positive. Building on positive sessions is a good boost for your trading confidence. You just have to keep your losing sessions small. If you can control your losses, you can do well, if you have a good trading method you follow that will produce with confidence.
If you don’t have a trading method that is written with rules that cover all aspects of your trading, from entry, stops, exit and exits, you are trading at a very large disadvantage. You may know in your mind what you want to do, but if it is not in writing, you are wide open to various temptations and weak moments to take trades that are less than desirable which can lead to losses.
Trading momentum can also be seen in doing the wrong thing at the wrong time over and over. What traders need is positive trading momentum that they can build upon and feel good about. Much of this can be traced back to self image and how you see yourself as a trader. A few bad experiences can get you rooted onto a bad footing that will then seem impossible to break free from.
This is just how it is, as many day traders are completely unaware of the dangers, while they set out to master the day trading dream.
Do you have a written trading plan? Do you have a clear trading advantage present as you put on trades? Do you approach the trading session with confidence or are stricken with indecision? Do you understand price action as it unfolds? Do you have the trade discipline to execute the trades as per your written trading plan?
These are all questions that need to be addressed ahead of time and it needs to be done before you put on a live trade, not after. Having someone that can help you through all those issues can be a big benefit to speed up the process. It can take years doing it on your own, believe me, I know. Fast tracking the process is possible, but it still takes work and dedication.
If you need help with your trading, I am available to mentor a select few who feel that what I have to offer can help them. My trading method covers ever kind of trader that is out there. Very small scalp trades, medium scalp trading, long range day session trading for multiple points.
This can also be done on daily charts for fewer trading decisions and much larger trading rewards. It is all really relative to the type of trader you are and it works very well on stocks and other futures just the same.
Trading the price action is how I started out this blog posting and it is still the key to build confidence in your trading. It starts with a plan and the willingness to do what ever you have to do to make it happen.
If you have questions, please feel free. If not, just enjoy the postings and charts enclosed and I wish you all well. Either way, its all good as we move forward in the greatest business in the world.
The best trades to you all