There are a few key reasons we don’t try to force trades…
For one, there’s no need to. There will always be another opportunity.
Second, a seasoned trader has the next plan of attack already planned out.
For example, students of my premium trading service, The Speciale Report, were anxiously awaiting a trigger to buy the market last week.
But that trigger never transpired per my trade plan.
Was I disappointed for them? Absolutely. Were they disappointed? Most certainly.
But the plan is the plan. Once we have it down pat and we know it works, we live, trade and die by it.
So where does this leave us? If the price doesn’t retrace before my target is it, or if there is too much risk compared to too little reward, we’ll just sit this one out.
Plan the Trade
So, yes. It is disappointing… Especially when the market does exactly what you had predicted it to do. But that’s part of life, and that’s part of trading.
I’ll wait patiently for the price to offer me a great entry, and if it doesn’t, I’ll wait for the market to settle above my target.
If price settles above my target, that resistance becomes support, and then we’re off to the races towards our next target.
If the price falls back, we know where our support levels are. We’re not about to short an aggressively trending long market, but we’ll sure as heck buy the dip if it meets our criteria.
I’ve learned one thing about trading that I really didn’t know was required, and that is patience. Who knew you had to be so patient. Well, I do now!
In fact, I’m a better trader when I’m NOT glued to my computer. I’m a trader that trades based on settlements. I’ve discussed the power of settlements in prior articles.
I care about daily and weekly closing prices or settlements. I’m not interested in what the market does during the day unless it’s hitting my target or my stop.
Trade the Plan
I’ve made the most money detached from my computer. Once I enter a trade, I’ve already got a target setup and a stop set up. There’s nothing left for me to do.
In my less experienced days, I found myself micro-managing my trades… Talking myself out of staying in a position that’s profitable or talking myself into letting my losers get worse because I was determined to be right.
The market is going to do whatever it wants to. You or I or all of the traders and students here at Traders Agency aren’t going to change it.
It’s our job to do the analysis and follow our trade plans. Beyond that, you control nothing. The sooner you realize this, the sooner you’ll become a consistent trader!
The day I stopped caring about the trade is the day I realized I’m a professional trader.
It’s not that I didn’t want the trade to work out… I just knew that the market was going to do what it was going to do and there was absolutely nothing I could do about it.
My criteria were met, my entry was placed, and I had a target and a stop. My job was done!
Rules to Live By
“You can’t live your life for other people. You’ve got to do what’s right for you, even if it hurts some people you love.”
― Nicholas Sparks
Until next time, I wish you a beautiful and blessed day!
Yours In Trading Success,
Anthony Speciale Jr.