No is normal
No, this time your trade won't work.
No, the price isn't going to continue going your way.
No, just because you were right moments ago, it’s no longer the case.
And until you:
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Believe this at a deep level, and.
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Arm yourself with the skills to make pinpoint entries, despite these 'No's,
You'll forever be an emotional ticking time bomb, with reactional trades ready to explode.
Now keep reading to find out why it happens and how to overcome it—with real trading from this week to demonstrate.
While my edges are not made public, I'll make one exception and share one of the most significant:
Outlasting the competition. But what does it mean?
To illustrate: What happens at the start of a marathon?
Everyone is running at roughly the same pace. Even the casual runner can keep pace with a world title-holding marathon runner in the early phase of the race.
But over time, the strongest athletes break away from the pack. And you'll see the same behaviours in the market.
Why?
You know the market functions to take money from the pack to pass to the strongest traders.
But it's not something the pack does by choice. The market needs to intervene to force their hand, right?
During this intervention, the best-intentioned traders fall victim to their lack of market understanding and skill.
You'll see real trading to demonstrate this in a minute. But first, remember what the best trader of our time, Jim Simons, said about trading?
"We don't want to predict price, but we want to predict when other market participants are going to do something."
Jim Simons is referring to game theory.
I bolded the word "game" because, unlike a regular marathon, the separation of the leaders from the pack is anything but regular when it comes to trading.
It can happen sooner or later, for longer or for shorter, or partially or completely—that's the nature of a competitive game.
And you never know beforehand what it is going to be like 'this time'.
This shows why it's vital to your trading success to know how—using a swimming term—to 'tread water'. Trades that don't take you forward but don't sink you either.
To enter trades that go your way yet take the money that's available before the trade fails to continue, as if the trade worked 'kind of'.
And to know when you can enter and use the market's money to add to your position and take more out of the market on the rare occasion this opportunity occurs.
And to rinse and repeat.
You'll see examples of all of these scenarios demonstrated below.
Tuesday's trading:
Eight trades were made between midday and six in the evening. With an hour spent in the planning stage before trading—this is a typical trading day.
The best plans allow you to double, triple, and quadruple dip—but only if you have the skills to enter and exit with precision—to ensure you turn the 'No's' we covered earlier into opportunities.
With the exception of one long scalp, all trades were acting out the same daily game plan—trade short between 0.6760 and 0.6747.
Excerpt from Friday's trading Below you see what treading water looks like.
Neither going forward nor backwards.
This is the essence of outlasting the competition.
You don't know when, but eventually, the trade that pays presents itself.
But you must be trading to take advantage—regardless of how long you spend treading water beforehand. Make sense?
Yet because treading water trading is challenging, while you might not see movement in your account balance, it advances your skills.
What happens next?
Treading water trading prepares you to extract maximum payment from the market when the trade that pays comes. It makes you a much better trader.
See treading water: Blue arrows are buys, and pink arrows are exits.
Forex and derivatives trading is a highly competitive and often extremely fast-paced environment. It only rewards individuals who attain the required level of skill and expertise to compete. Past performance is not indicative of future results. There is a substantial risk of loss to unskilled and inexperienced players. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent
Editors’ Picks
EUR/USD struggles to recover above 1.0900 as markets remain cautious
EUR/USD stays on the back foot and trades below 1.0900 following Thursday's sharp decline. Dovish comments from European Central Bank officials and the risk-averse market atmosphere make it difficult for the pair to stage a rebound on Friday.
GBP/USD falls toward 1.2900, looks to post weekly losses
GBP/USD continues to push lower toward 1.2900 in the American session on Friday. Disappointing Retail Sales data from the UK, combined with the US Dollar (USD) recovery amid souring mood, causes the pair to stay under bearish pressure ahead of the weekend.
Gold extends daily slide, trades near $2,400
Gold's correction from the record-high set earlier in the week deepens on Friday. With the US Dollar (USD) benefiting from safe-haven flows and the 10-year US yield holding steady above 4.2%, XAU/USD tests $2,400 and looks to post small weekly losses
Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry
Bitcoin and Ethereum hold steady above $64,000 and $3,400 as $1.8 billion in options expire on Friday. WazirX hack of $230 million potentially linked to Lazarus Group ushers correction in Shiba Inu, among other assets.
Week ahead – Flash PMIs, US GDP and BoC decision on tap
US data awaited amid overly dovish Fed rate cut bets. July PMIs to reveal how economies entered H2. BoC decides on monetary policy, may cut rates again.
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