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I was too scared to enter into the Range Break long above the box, even though that pinbar was screaming get long. However the first pullback allowed me to get in and simply hold the trade for a relatively giant number of pips since there was only vacuum above those prices.
This trade illustrates that you do not need to chase price if you miss a trade but simply continue being patient.
This range was easy to trade if you keep in mind the trend equal trend phenomenon.
Price was in a markedly bearish trend and once you had your box it was highl probable that the bear would resume once price dipped below that range:
Note that I exited to early leaving half the profits on the table.
On the other hand if there is impatience it may cause lot of stress and worry as price whipsaws around and you are in early, as in this trade! Also that is the reason for my hurried early exit instead of allowing it to reach target.
These two trades also illustrate the two issues where I keep vigil: impatience-based early entries and fear-based early entries. Both are fear's different forms (even greed is a form of fear). Courage and patience are more important than setups.
Here are some trades that I missed because even though the market was screaming 'short' I was thinking about 'countertrend - no!' and hence missed a giant opportunity. The stop would have been small and easily placeable too!
I, however, do not regret it post-facto. To everything just say 'yes' - peace of mind is also your trading capital.
An early entry is sometimes acceptable, as in here but still it wasn't in tune with my method:
It is not the early entry here that is the problem, it is deviation from strategy that is the problem. Do it once and you will be doing it all over the place and end up hating yourself everytime it backfires.
These early entries are kind of hard to explain, but never hesitated taking them.
I keep reminding myself that the underlying emotions of the trader cause these - sometimes it is wanting to be whole again after a losing trade and sometimes it is wanting to be right on direction:
If there is one thing that needs to be kept in the forefront of consciousness it is this: since this is a game of trapping and trampling, it is wise to avoid these obvious tease breaks to which we can succumb due to fear of missing out as happened here:
The net outcome may be positive, but mental capital truly gets exhausted in such cases.
Here we have an excellent range formation, but the silliness of my exit is obvious - I essentially succumbed because I entered early and then those mental reserves got depleted.
Since someone asked, and since it is my belief that even if this journal helps one person it would truly serve its purpose I have freely shared the method (its not my method, but remember that every method has to be made 'my' by the trader)
So here is a summary guide to understanding method, while remembering that after the essentials are grasped the inner battle still is there to be conquered:
A diagonal pullback in a freshly started trend, a bar that breaks above the last bar of this string of pullback bars near the EMA and viola you should be in!
Sadly I chickened out on this long a tad early, but apply …
The trade premise is easy: Wait for the pullback to reach the EMA. If it is not a smooth diagonal pullback then do not take the First Break. Wait for price to breakout the second time and get in at that break.
I was too scared to enter into the Range Break long above the box, even though that pinbar was screaming get long. However the first pullback allowed me to get in and simply hold the trade for a relatively giant number of pips since there was only vacuum …
If there is one thing that needs to be kept in the forefront of consciousness it is this: since this is a game of trapping and trampling, it is wise to avoid these obvious tease breaks to which we can succumb due to fear of missing out as happened here:
Here we have an excellent range formation, but the silliness of my exit is obvious - I essentially succumbed because I entered early and then those mental reserves got depleted.
The Inside Range Breaks and Advanced Range Breaks I will reserve for the future because they are more demanding by their very nature.