You can identify the best reversal area in the market, your alarm can go off and you can come to your desk eager to take a trade. And the market can ignore your zone. It may pause, flirting the with idea, and then crash through. Or even worse, it may reach your zone and reverse but give you no signal whatsoever!
On days like those it can be infuriating. Doesn't the market understand that I'm a trader sitting here looking for trades? Why didn't it give me my pin bar?
Unfortunately it doesn't work like that. The market is its own beast and does what it likes. The signals you identify are merely representations of something happening with price. And hopefully, you have identified trends that repeat when you get these signals. But that doesn't mean you'll get them every time.
I had a zone identified today on the FTSE and I outlined it to my subscribers. It was a very strong zone and I was expecting the reversal to come. But for me, there just wasn't the signal. So I watched the FTSE plummet without me on board. Frustrating, right? But what's worse is abandoning your plan 'just this once'. Even more so when that trade makes you money.
How can it be bad if it made me money?!
Because you have now subconsciously shown yourself that your rules don't need to be followed. So the next time it happens, you'll do it again. And again. You'll start to forget that your rules are there because you KNOW they are what makes you money long term. Making money from one trade is not important. Being able to make money overall from 100+ trades IS important.
Have a plan and stick to it. For now, I'll just keep banging my head against this desk!
I hope you've had a great trading week!
Amazing trader, thank you very much for your golden articles you share with us.
ReplyDeletebest of luck 4 u.
Amazing trader, thank you very much for your golden articles you share with us.
ReplyDeletebest of luck 4 u.