Think Like A Trader Blog

Thursday, 28 January 2016

The Market Does What The Market Does

Reading Time - 4 Minutes

If you trade the 5 minute timeframe you expect relatively quick trades, right? Well, for the most part, the trades are quick – they either stop you out or hit your target within 30 – 45 minutes. But not always!

The market does what the market does. There’s no way around that. Your analysis can be perfect, your entry at the best possible level, and the market can still zoom through and hit your stop. It can also pause and think about things, consider life and the Universe before making its move (well, it certainly feels like that’s what it’s doing as it hovers, not going anywhere at all.)

Initially I was looking to get long this morning, but sadly there were no clear setups for me so I missed the initial rally after the open. Such is trading. My next position was a blind sell from 6014. That triggered in relatively quickly after the open. I had a zone below, which was in the way of the trade, but I was confident the market would fall through it.

Two hours later? The market was pondering the meaning of life, not doing anything at all! Actually, it was trapped in between my entry point and the minor zone below that I mentioned. It rose to the 6014 levels, then it fell to the zone below. Again. A third time.

What did I do? Well initially I locked in profit at the minor zone, which is prudent since the zone may not have turned out to be minor (my analysis can be wrong, and if the market disagrees with me there’s no point trying to argue my point, as I’ll lose and my account will suffer.) But then I just waited. I didn’t panic. I didn’t change my mind. My initial analysis was done, the trade was set.

I managed the trade though. I didn’t want strong candle breaks of the 6014 level. If that had happened, I would have tightened my stop and expected a losing trade. But that was the only way I would have altered what I was doing. So I watched each time as the market pushed against me. There was a strong bullish bar off of the minor zone that was an engulfing candle. But I waited.

And what happened, after two hours and fifteen minutes? The zone broke, finally! Trade completed.

The market wont always move the way you want. I like quick trades, but the market will do what the market does. Just stick to your plan and don’t panic.

Do what I do. Get a coffee and every now and again throw your head back and sigh.

Ok I don’t sigh, but coffee is a must!

I hope you’ve all had a great trading week!


  1. Yep great article! Hi,and as you say and teach that's the hardest part of trading,not about the waiting but about stick to you gameplan,to stay patient even if the market against you and then...turns around and suddenly you've done!As a beginner,mind you,all I know what I've learned from your course,it works pretty well, of course I make quite a few errors but I try to learn from them and improve each day the best I can.Thanks

    1. Thank you. Errors are all part of learning. A little improvement each day goes a long way!