{"id":1464,"date":"2024-05-06T15:55:27","date_gmt":"2024-05-06T15:55:27","guid":{"rendered":"https:\/\/thetalabmarketing.com\/?p=1464"},"modified":"2024-05-06T15:55:27","modified_gmt":"2024-05-06T15:55:27","slug":"three-insights-to-end-lacking-patience-fomoing-into-trades-and-changing-trade-direction-on-a-whim","status":"publish","type":"post","link":"https:\/\/thetalabmarketing.net\/?p=1464","title":{"rendered":"Three insights to end lacking patience, FOMO\u2019ing into trades and changing trade direction on a whim"},"content":{"rendered":"\n

You curse yourself for making trading blunders.<\/p>\n\n\n\n

Also, anytime you lack patience, FOMO into positions or change your trade direction on a whim.<\/p>\n\n\n\n

Keep reading to discover how combining three valuable insights<\/strong> can end regretful trades for good and instil confidence about your future trading.<\/p>\n\n\n\n

Insight one<\/h2>\n\n\n\n

Before entering a trade, you always want to ask yourself, \u201cIs the outcome known?\u201d<\/p>\n\n\n\n

I\u2019m sure you understand the saying, \u201cBuy the rumour, sell the fact\u201d.<\/p>\n\n\n\n

Regardless of what you trade and the different methods used by institutions, algorithms, and market makers, this principle applies to everyone in the market.<\/p>\n\n\n\n

Let me give you a quick example using Friday\u2019s trading.<\/p>\n\n\n\n

The first chart below shows a \u2018zoomed-in\u2019 view of the executions\u2014only trading the short side.<\/p>\n\n\n

\n
\"Chart\"\/<\/a><\/figure><\/div>\n\n\n

The following chart you\u2019ll see is a \u2018zoomed out\u2019 view.<\/p>\n\n\n\n

For context<\/h2>\n\n\n\n

The most successful blow in boxing is the \u201cblindside punch\u201d\u2014a sudden, unexpected strike that the opponent didn\u2019t anticipate.<\/p>\n\n\n\n

Similarly, the most successful market moves to trade are the unexpected moves that catch people off guard, using the element of surprise to gain an advantage. The pink arrow you see is the move down traded per the executions above\u2014catching people off guard.<\/p>\n\n\n\n

\"Chart\"\/<\/a><\/figure>\n\n\n\n

The white-circled area displays a stark contrast in behaviour. It refers to the \u2018outcome is known\u2019 when everyone in the market realises, \u201cGeez, well, there\u2019s been a big move down.\u201d <\/em> This period is by far the most challenging period to trade<\/strong>.<\/p>\n\n\n\n

Why? Because there is a multitude of opposing views. Some are emotional, some flawed logic, but the outcome is akin to watching a tug-of-war that\u2019s a stalemate. Just as you think the team on the left has the upper hand, momentum shifts back to the right, and so on.<\/p>\n\n\n\n

Successful trading requires entering your trade before \u2018the outcome is known\u2019 and exiting once known.<\/strong><\/p>\n\n\n\n

Exiting once the \u2018outcome is known\u2019 maximises your winnings. By contrast, setting a target is ineffective in capturing profits. You either exit too soon or give back open equity. Agree?<\/p>\n\n\n\n

Insight two<\/h2>\n\n\n\n

Write this insight on a Post-it note and attach it to your monitors until it\u2019s deeply ingrained.<\/p>\n\n\n\n

The market needs people to act irrationally and seemingly randomly to fund traders who understand how the game is played.<\/strong><\/p>\n\n\n\n

The most common time you\u2019ll witness this behaviour is when the outcome is known.<\/p>\n\n\n\n

Consider this<\/h2>\n\n\n\n

When the market catches traders off guard, it\u2019s flush with traders exiting losing positions. You are not witnessing an even distribution of varying views and strategies in action.<\/p>\n\n\n\n

But once the dust settles and the outcome is known, you\u2019ll see trading activity representing various views and strategies.<\/p>\n\n\n\n

These are the optimum times for the market to capture profits from \u2018you\u2019 to fund the traders who understand how the market functions. Make sense?<\/p>\n\n\n\n

When you deeply understand this, your participation completely transforms. You no longer fight with the market as if fighting against the market can ever work in your favour.<\/p>\n\n\n\n

Instead: These are the periods when you know the market is executing its playbook to take money from unsuspecting traders.<\/p>\n\n\n\n

And the longer it takes to execute its playbook on the unsuspecting, the bigger the number of traders it\u2019s capturing as the source of fuel for\u2014you guessed it\u2014the next \u2018before the outcome is known\u2019 event.<\/p>\n\n\n\n

If there\u2019s one thing the market does with repetitive consistency, it\u2019s executing its playbook.<\/p>\n\n\n\n

This means that your good idea (a game plan) can pay you several times over.<\/p>\n\n\n\n

Let me show you using Thursday\u2019s game plan.<\/p>\n\n\n\n

If the market moves from its current level, reaching the white-boxed area, trading on the long side is triggered.<\/p>\n\n\n

\n
\"fxsoriginal\"\/<\/a><\/figure><\/div>\n\n\n

The charts below show two opportunities to execute the above game plan.<\/p>\n\n\n\n

The first time at midday and the second at 4 PM are examples of trading before the outcome is known.<\/p>\n\n\n

\n
\"Chart\"\/<\/a><\/figure><\/div>\n\n
\n
\"Chart\"\/<\/a><\/figure><\/div>\n\n\n

And what about the period between them? Its classic outcome is known behaviour.<\/p>\n\n\n\n

These periods can feel like they last a lifetime. But it\u2019s part of the market\u2019s playbook. Time for you to grab the popcorn and watch the show.<\/p>\n\n\n\n

Full disclosure: I attempted three scalp trades between the two trade sequences above and lost on all of them.<\/p>\n\n\n\n

Insight three<\/h2>\n\n\n\n

When you incorporate a multiple-points-of-evidence approach to trading and implement authentic playbook trades, you\u2019ll discover your trading opportunities don\u2019t coexist with the market\u2019s playbook. It\u2019s your ultimate defence against the market.<\/p>\n\n\n\n

People often focus on finding trades to make money. But the secret to trading success is disqualification\u2014and professionals know it.<\/p>\n\n\n\n

You can filter out all the \u2018outcome-is-known\u2019 scenarios while the market executes its playbook using a brutal evidence-based framework. Make sense?<\/p>\n","protected":false},"excerpt":{"rendered":"

You curse yourself for making trading blunders. Also, anytime you lack patience, FOMO into positions or change your trade direction on a whim. Keep reading to discover how combining three valuable insights can end regretful trades for good and instil confidence about your future trading. Insight one Before entering a trade, you always want to ask yourself, […]<\/p>\n","protected":false},"author":1,"featured_media":1444,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-1464","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education"],"_links":{"self":[{"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=\/wp\/v2\/posts\/1464"}],"collection":[{"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1464"}],"version-history":[{"count":1,"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=\/wp\/v2\/posts\/1464\/revisions"}],"predecessor-version":[{"id":1465,"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=\/wp\/v2\/posts\/1464\/revisions\/1465"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=\/wp\/v2\/media\/1444"}],"wp:attachment":[{"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thetalabmarketing.net\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}