This is another mindset problem for you to work on: The belief that you are proven right or wrong based on the outcome of a trade. The only trade where you're proven right is the trade that fulfills your entry rules and is managed according to your exit rules. Whether the outcome is a profit or a loss has no meaning whatsoever. This right/wrong mindset based on outcomes is probably responsible for a great many spectacular losses. By the way, I'm a scalper but I'm not a micro scalper. If you were long during that first pullback bar on Chart #3, price moved barely over .10 before continuing in the direction of the trend. You'd have no problem scratching the long trade, but by positioning counter-trend without a reversal signal, your bias at that point would likely have distracted you from reversing at the short trigger where there was .60 of downside from which to extract a nice day's pay with just a single contract on.
You're exactly right.. I'm worried about being right or wrong.. I'm worried about jumping the gun and buying stocks that have not properly set up yet especially on a week where I have better edge..
you're just trading too lage reduce size by 75% that will eliminate fear then all you will have to deal with is greed
Its the greed that I have a problem with which is why I jump the gun too early.. how do u solve that?
Hehehe. I have read a lot of Brooks. Volman too. And a lot of what you and others write on price action. I hope to go beyond the reading and translate some of it into some money. The only leap that is there to be made.
Hi Nodoji, I like the 3- chart challenge exercise. If you throw another such exercise, could you please indicate price increment for chart, also of all the trades you did right, could you kindly include one example in which you got the trade wrong (I understand the rarity of it ). Maybe that will generate more interesting discussions. I appreciate your clear analysis as always. OC
Yes, another 3 charts will follow. Doing this made me realize that it would nice to have a price action workbook with challenges like this! Maybe it's time for a new thread under Educational Resources with hard right edge challenges, since that's what we day traders do all day
I'm posting prices on the charts now, so those of you with access to futures charts, DON'T CHEAT! Chart #1: