Ninja Talks EP 19: Let The Trade Pass
There's a completely logical but not often used "technique" (if you can call it that) I see only very experienced traders use.
When I do it I can understand why very few people actually stick to it.
Yes it's profitable.
Yes it will make you money both in the short term and the long term.
But you will feel extremely uncomfortable.
The technique I'm talking about is what I call "letting the trade pass."
The basic idea is that Bambi traders jump into trades too early, so as a "letting the trade pass" practitioner your goal is to not jump in early, but instead wait for data to print.
Why do we want more data to print?
Because with each candlestick we gain more and more awareness on the situation.
"Letting the trade pass" simply means just that, you hold off until the "best entry" has passed you by aka you let it pass!
Don't worry you'll have plenty of time to get in on pullbacks and bounces.
Remember price doesn't move in a straight line (only when price reaches terminal velocity does this happen).
Another thing:
As we allow data to print, our certainty level will either increase or decrease depending on if it's proving our thesis correct or incorrect.
Here's the basic steps to follow:
1. Analyze the charts, build a thesis for long or short, if/then/when scenario.
2. Allow data to print (Warning: This can be very uncomfortable) - FOMO will begin to creep in.
3. Let the trade pass - if price confirms your thoughts then allow it to pass by
4. As price is leaving hop on like a train surfer and get a free low risk ride to profit town.
Make sense?
It's all about waiting for data to print and your certainty level to be at an all time high before entering a trade.
This is how you master psychology.
Market Psychology is the forgotten art, invest your time in it and the rewards are exponential.
Hope this helps, follow for more.
Nick
When I do it I can understand why very few people actually stick to it.
Yes it's profitable.
Yes it will make you money both in the short term and the long term.
But you will feel extremely uncomfortable.
The technique I'm talking about is what I call "letting the trade pass."
The basic idea is that Bambi traders jump into trades too early, so as a "letting the trade pass" practitioner your goal is to not jump in early, but instead wait for data to print.
Why do we want more data to print?
Because with each candlestick we gain more and more awareness on the situation.
"Letting the trade pass" simply means just that, you hold off until the "best entry" has passed you by aka you let it pass!
Don't worry you'll have plenty of time to get in on pullbacks and bounces.
Remember price doesn't move in a straight line (only when price reaches terminal velocity does this happen).
Another thing:
As we allow data to print, our certainty level will either increase or decrease depending on if it's proving our thesis correct or incorrect.
Here's the basic steps to follow:
1. Analyze the charts, build a thesis for long or short, if/then/when scenario.
2. Allow data to print (Warning: This can be very uncomfortable) - FOMO will begin to creep in.
3. Let the trade pass - if price confirms your thoughts then allow it to pass by
4. As price is leaving hop on like a train surfer and get a free low risk ride to profit town.
Make sense?
It's all about waiting for data to print and your certainty level to be at an all time high before entering a trade.
This is how you master psychology.
Market Psychology is the forgotten art, invest your time in it and the rewards are exponential.
Hope this helps, follow for more.
Nick
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