Please ignore the previous post as I lost internet connection
Dear all, as mentioned i not only want to share trading signals and ideals but more on my psychology. There are tons of signals and ideals just on this platform itself. I do not see I'm the best out there, nor am I not trying to be special or trying to sell something. I have always been wanting to contribute to the community and this is one of the best way to do it. The more I share, the more i learn as well.
My view of a trading career is that it'd be one of the toughest endeavor you undertake in your life because you need to be constantly aware of your own emotions, keeping your actions in check and be patience. I mean, who can do this day to day? I can't for sure. There are countless days where emotions creep in and before I knew it, I did something totally contrary to my plan. My honest opinion is, I can never be perfect. What I do is to admit that and find ways to be better, but stop trying to be perfect because the market never is as well. HAHA.
*** Please bear with my "English", I've a lot to improve on for myself on that. ***
I'm breaking down this into a few series because it can be very dry to read all at one shot. OK, let me start by going back to the very beginning in which a 4 hour Bullish Bat is discovered. If I go to a larger time frame, we can see that A6 has been on an uptrend on a longer term basis when it broke 7700. Momentum was good. This move began on 13th July and lasted all the way to 27th.
(The first part is dedicated to momentum and swing traders)
It's always easy when we are conducting post mortem analysis on price action. Who can't see its an uptrend and we should go long? While that is true, there ain't much ways to learn besides that. I don't see much of a issue if, you already have a trade plan that encompass a entry, stop loss and viable risk to reward ratio. Such post mortem exercise are only useful if you do it in a meaningful way.
So, with the beginning of the break on 7700, this instrument should already be on your radar. The first thing that comes into my mind is:
1) This breakout is confirmed as the close above 7700 is confirmed. You have to believe in it because you can't execute or take action if you don't. This is the point where previous false breakout creeps into your mind and says: "haha you are not going to fool me!". If you develop such habitual thinking, you are going to face a lot of execution problems and this is where many attempt to trade "tops" or reversals, in total contrary to a swing trade long.
Trading requires a lot of muscle memory. To be successful trading momentum and swing, you must constantly cast away contradicting signals and focus on your predetermined swing or momentum quantifiers. Build it into your subconscious by practice.
2) Accept that the best plan will fail. Having said the first point, are we going to be stubborn and keep trading? The answer is no. You see, even the best get it wrong. So, I personally propose let the market decide on that. If you have a plan, you always have a stop loss. A stop loss is there to tell you to review your trade plan if you got stop out. By the way, if you have the habit of moving your stops, I'd suggest you practice to keep it. Personally, I only move stops when my trade becomes profitable. Once an entry is triggered, believe in your plan and let the market decide.
3) Do not be greedy. Again, I cannot emphasize enough on sticking to the plan. In the last 10 years, greed has been one of the emotions that affects my trades a lot. Who doesn't want a winner? Umpteen times with good profits I failed to capture and ended up being stop out. "Revenge" is sweet. The vicious cycle of doubling up, moving my stop loss began and by the time I realize it, I had a big loss. So, when you enter the market, a stop loss and profit targets is a must.
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I have to continue writing in commentary. To finish off part 3, can we have still have a big winner? Yes. Such trades don't normally happen but, if I've already capture my plan targets, I may have a small position that has protective stops. This is the icing on the cake. The A6 chart suggest that you can ride all the way till point 4!
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In the next series, i will present a simple plan to trade it.
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