Thursday, August 18, 2022

Improving Your Trading Psychology By Improving Your Trading

What if you had the patience to wait for clarity in the market's behavior?  

What if you only traded when a backtested pattern in the market was playing itself out in real time?

What if you rigorously reviewed each day's market behavior to become sensitive to the trends and cycles present here and now?

What if you didn't *need* to trade and only acted when there was clarity:  when larger and shorter time frames line up?

You see a market likely to go higher after a thrust in breadth.  You notice a trend higher on a particular time frame.  You see a pullback from that trend that can't meaningfully trace the prior rise; you enter for a retest of the prior high and possible trend continuation.  You follow a formula for taking partial profits at the prior high; letting a portion of the trade run to a short-term overbought extreme.

When you wait for clarity, trading comes to you.

Working on your mindset to improve your trading is not the key to trading psychology.

Working on your trading to improve your mindset is the promising performance path.

If you wait for clarity, you'll trade with focus.  

If you *need* to trade and *need* to make money, you'll never wait for clarity.

Further Reading: