So, when should you go for it?
As a trader you probably know that sometimes being that bit too aggressive on a trade can come with hefty penalties, either wiping out your gains for the day, or even pushing you uncomfortably into the red when minutes before you were looking good. This can be very frustrating and demoralising… you may even be muttering under your breath “if only I didn’t go in so heavy on this one”…
So when should you push it, and when should you leave it be? If you’ve read my Ferrari fun post then you’ll understand my point that trading can be exciting and rapid at times, but get it wrong and it’ll spit you off the track! However, when the time is right you can get in hot and pull off a great move 👊👊👊.
The secret is in knowing when the market conditions match your setup, and having the discipline and patience to only accept an entry at the right price.
For the last week or so I’ve had to really take it easy, play it extra safe as the market has been very choppy with what looks like plenty of market manipulation going on, making the relatively predictable plays, well a little less predictable. It’s at times like these that the discipline I’m always banging on about comes into play. Reducing size slightly, and being that little bit more selective on entry points has been keeping me green when it could all too easily go against me. Being happy to take smaller and safer gains has been a real factor in keeping me consistent. Even in a buoyant market where the volume and volatility that I crave are in abundance, it’s still the case that the longer you are in a trade the more at risk you are of other factors affecting your position. So when the market is as it is at the moment, this is even more important to remember.
Be ruthless with your entry requirements so that you’re limiting the potential loss, and giving yourself at least some profits on what might only be a small portion of the move. A few small gains are fine, multiple heavy losses aren’t.
I also bang on about only trading your set up, and only when it’s perfect. If it’s not setting up perfectly don’t trade it… even if that means no trades at all for a day or two. Opportunities in the market are never that far away, so having the patience to wait is so important. Don’t allow frustration to influence you! When all the boxes are ticked and you’re getting exactly what you want to see, nail it. When your set up presents itself perfectly, you’ve got all the elements you require and you’re seeing high relative volume and follow through to give you the confidence to size up, then nail the trade and lock it in! You still have to stick to the rules, but if it’s all there then you’ll feel much more comfortable with going in hot.
The start of 2018 was excellent, loads of opportunities to seize. The last few weeks have been choppy, but having a rock solid mindset is keeping me safe… and most importantly, green 🙂
Let me know how you’ve been finding it out there, always nice to hear from you.
Trade safe guys,