Powerful trading concepts to boost your consistency and long-term performance in the Forex, Indices & Commodities markets.
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I bet you go mad when this happens…
You’ve spent time and energy planning out your trade, you’ve got everything marked up. The day comes to execute your idea, and for one reason or another, you haven’t entered! The market moves away without you and now you’re cursing 🤬
The reasons don’t matter. It could’ve been your kids and dog distracting you, your focus was taken by another market, an unexpected phone call, or simply life just took over. The question is: what do you do about it and how do you avoid it next time?
1 – Reflect on the MUCH Bigger Picture
If you can think of a way to isolate yourself and go into focus mode, to avoid the above situations, do it. If not, and they’re all unplanned, then remember this:
There’s always going to be a constant array of opportunities. You can relax.
The financial market is producing a constant array of opportunities all the time. It doesn’t stop. If it’s not today, it’ll be tomorrow. A new setup must always eventually occur again. It’s just the repetitive nature of the market. It’s as sure as seeing leaves fall off the tree and more growing again. You can’t even count the number of leaves on a tree without losing count…
So, you can relax… Take a deep breath and go outside for a bit to remember this bigger picture.
2 – Plan a Lower Timeframe Entry Immediately After You Miss the Move
Once you’ve gone through Step 1, now you can go through this concept on entering on a lower timeframe than the one you originally planned to.
But first, there are a few rules:
- Let the market go. Don’t try to enter it. If it’s gone, it’s gone. Chasing it almost never goes well.
- Drop any emotions or self-talk you have going on – as soon as you notice them. Come back into peace, remember Step 1. Only from this clear space, you can move forward.
- Then, make sure that the market hasn’t yet reached your intended target price. If it has, then the move is done. If it hasn’t, then you have space to operate in, where you can advantage of the potential pips/points remaining in the move.
No problem can be solved from the same level of consciousness that created it.Albert Einstein
The Lower Timeframe Tactic
Now that the market’s gone, gone down two timeframes. Your original entry timeframe now becomes as the higher timeframe analysis. And the lower one you’ve switched to, becomes the entry trigger. Redo your analysis and see whether the move you now have is worth the risk. It may be that you only have 20-30 pips to play with, in which case the new setup will be a scalp.
Above, the orange box is the original entry point on H4 – the analysis being on Weekly. Now that the market has shifted away, we use H4 as the momentum analysis timeframe, and we’d drop down into M15 to get an entry. The low of that swing (which was our entry) now becomes the Stoploss, or last invalidation point that the market shouldn’t breach. So, waiting for a retracement and a better entry price on M15 would be the next anticipated move. We still have trading ‘space’ to go until the Target Point, therefore it’s a valid idea.
Keep in mind that, the market may also not even give you a chance to enter on M15 either, if the momentum is so strong. In that case, be even more vigilant of your emotions and self-talk. Drop that market completely and move onto another. This isn’t a relationship; we don’t get attached in trading…
Happy trading everyone.
Written by: Dima Mihailovich, Technical Analyst for Forex Prop News
Contact and follow Dima on Twitter: @dimafpn
Image by Lisa Fotios, on Pexels
Image by Andrea Piacquadio, on Pexels
(Please note: All comments made in this video and article are not trading or investment advice and are for education purposes only. You are responsible for your own decisions and the risk that goes with it.)