Trading was Hard until I understood these 3 Concepts.

Trading was Hard until I understood these 3 Concepts.
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When you’ve been trading for as long as I have, which is going on eight years now, you often forget what it was like to think like your old self. So when you just get started out trading, you might have a lot of thoughts that make you very impulsive. For example, you look at this chart right now and think, “Wow, it’s going down. I’m going to short. I’m going all in short because it’s going down.” You’re just looking left and making an impulsive decision based on one thing that aligns with your thought process. You can easily become very biased in the market when you’re new. However, once you get humbled, gain some experience, and incur some losses, which will happen, you start to realize quickly that just one condition being met, for example, being near resistance, is not enough for you to take a trade.

Now, sometimes it’ll work in your favor, but oftentimes, if you go all in at resistance and we break resistance and continue to the upside, you have to be prepared for both sides of the trade. However, there was one point in my trading career where things just really shifted, and it had a lot to do with the way I was thinking and perceiving the market and traders on both sides of the market—bull traders, bear traders, people who are going long, and people who are going short.

GDP and JOBS DATA

So when I started to take into perspective the bigger picture and understood that, yes, we might catch some resistance here, but overall, where is the bigger trend, and where do I think it’s going to go? Then I started to have different conditions that needed to be met, not just one, but typically three for an A+ trade. Once you start to adjust your thought process to say, “Okay, yes, we are at resistance, but where is the larger trend? We are technically still in an uptrend based on the five-minute timeframe that I’m on right now.

Yes, we are hitting previous resistance to the left. We also are about to have really massive news in three minutes, GDP and jobs data. So I probably can understand that we are pulling back, but I’m not going to take this. I am going to take it with a grain of salt because we’re about to have massive news come out that could move the market.”

That’s something else I’m taking into factor. Another thing that I am considering is the fact that, okay, rule of threes. That’s just something that I’ve done over the years where typically, trendlines can get hit three times—one time, two times, three times. So, this is going to be a big level and a big hit on this trendline for CL.

Trading Futures

If we are looking to short, we need to see this trendline broken. But not only that, we’re looking left and seeing we’ve created higher support near this red line, which is why I have it drawn. So, there are multiple conditions and multiple factors always being taken in at every single moment, which is why I love trading. It’s not just plain black and white. There are always things that you need to be considering at every level. Where’s the trend? Where’s support, resistance, supply, and demand? Is there economic news coming out that could create extra volatility in the markets? What’s going on in overall market conditions? Where is SPY at, or ES if you’re trading futures? You know, where is the larger picture on overall market conditions elsewhere?

I’m always taking in multiple factors, is there oil inventories coming out if you’re trading oil? Understanding that there are so many moving pieces, which can be very overwhelming for a new trader, is really key. But let’s go back to that mindset shift because not only did I start to take in multiple factors and multiple things that could affect my trades, that was just one thing that shifted for me. The other thing that shifted is, again, going back to how I saw buyers and sellers. So when I was looking to take a trade, and we can use the example that I actually just did in Discord. So I typically am always looking at a bull side and a bear side


Breaking The Trend

Breaking the trend and flushing all the way down might seem tempting, but those who engage in such actions often end up hurting themselves the most and hindering their growth. The reason I create these videos is that I used to think this way for a long time. I learned through trial and error, realizing that simply jumping into trades without a well-thought-out plan led to losses. I failed to consider factors like take profit, stop loss, or the larger trend, resulting in consistent losses.

Considering different conditions and thinking like the other trader is crucial. When taking a long trade, it’s essential to think like a bear – where might they take profits or consider exiting their trade, and vice versa. Let me illustrate this with an example. I won’t execute a live trade now as I’ve wrapped up for the day. One reason I love trading Futures is that I’m usually done before 9 am, giving me the rest of the day free.

Being flexible and adaptable in your approach is key. I recently shared my analysis with my group, outlining a scenario where we draw back down temporarily, breaking a trendline to trap shorts. However, I emphasized the importance of holding above a certain level. If the price failed to hold, making lower highs, then bullish trades would no longer be viable. I don’t have a bias; I’m flexible based on the market conditions.

Now, as we test a crucial level, my bullish play depends on seeing wicks below a certain line with candle bodies holding above. If the scenario doesn’t unfold as expected, I won’t stubbornly stick to a preconceived idea. I have conditions for both bullish and bearish scenarios, and I’m prepared to react accordingly.

Advanced Trader

The main takeaway is to think like an advanced trader, considering multiple conditions and being disciplined. Repetitive bad habits, such as entering trades without proper risk management or a strategy, lead to consistent poor results. Making the switch to Futures has been a game-changer for me, offering the advantage of pre-market trading and fewer variables compared to options.

For those interested, more information on my approach and programs is available in the master link in the description. Lastly, a reminder to beware of scammers; I will never direct message you on any platform, so don’t fall for any messages claiming to be from me. That concludes today’s session. Thank you for watching, and I’ll see you next time.

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