This short article is to share some excellent Q&A following our recent series on "patience".
Check out the prior articles if you missed them:
Part 1 – http://yourtradingcoach.com/trader/patience-is-a-key-component-of-your-edge-part-1/
Part 2 – http://yourtradingcoach.com/trader/patience-is-a-key-component-of-your-edge-part-2/
In particular, it relates to the period of "emotional reaction" in last week's trade sequence:
Q. Won't I be annoyed if I don't take a third attempt short and the market moves lower without me?
So this is what we're talking about here:
Would I be annoyed?
NO!
Ok… maybe a little. Maybe briefly.
It does happen.
A third attempt may well have worked.
But given my emotional state (interfering with my ability to make quality decisions) and the fact that I was fading the immediate, short-term momentum, there is a much higher likelihood of it losing.
I don't have to catch every move. I trade the odds. And from that perspective the smarter option is to stand aside.
If the lower odds outcome happens and the market moves lower without me, so what. The smart decision was to not trade because more often than not the third attempt would have stopped out as well.
You should never be afraid to walk away. Take whatever time is necessary to clear your mind.
It's not quitting. It's not failure. It's a tactical withdrawal to regroup in order to allow you to resume the fight again when the odds are more in your favour.
Let's wrap up one final time with the key takeaway from Part 1…
You don't have to trade every price sequence.
If the market offers something that is not comfortable, or that's not easy to read, stand aside and wait.
The time to trade is ONLY when you feel it's flowing nicely and you're completely in sync with the price swings.
That is when you trade. No other time.
And the pattern-interrupt question from Part 2…
Pre-trade, ask yourself this question – "Is the market telling me to take this trade, or is it coming from inside me?"
And a final piece from today…
Never be afraid to step away.It's not quitting. It's not failure. It's a tactical withdrawal to regroup in order to allow you to resume the fight again when the odds are more in your favour.
Happy trading,
Lance Beggs