There are some trade ideas you look at with hindsight which are quite complex and which may have been difficult to execute.
And there are others which jump out at you as being really simple.
If you’re not yet profitable, then focus on the SIMPLE trade ideas.
Identify them. Study them. Learn from them. And then trade ONLY them… until you’ve got a proven edge.
What you see as simple may be different to what I see as simple. But essentially, we’re talking about those you would call your A+ trades.
Look at any historical chart. They’re the trades which your eyes go straight to. The ones that are immediately obvious. The ones that you’d be kicking yourself if you missed.
They’re the simple ones.
They’re the ones you need to focus on first.
For me… one of my favourites is the first pullback following a significant change in structure.
This trade… and every trade like it… jumps out of the chart at me.
If there is a “first pullback after a change of structure” trade that I miss, I’m seriously not impressed with myself.
Here’s what I was seeing as it unfolded:
What trade opportunities jump out of the chart to you?
Identify them. Study them. Learn from them. And then trade ONLY them… until you’ve got a proven edge.
They’re the simple ones.
They’re the ones you need to focus on first.
Happy trading,
Lance Beggs
Additional Notes:
1. YTC Price Action Trader readers – From the YTC PAT perspective the trade is simply the first PB opportunity after a transition from uptrend to downtrend. The classification of uptrend is not immediately obvious due to the lack of structure this early in the session. In the absence of any pre-session data, I will usually make use of any opening gap and also an opening range bias. With both being bullish in this case, I’m happy to call an uptrend.
2. Note the similarity with the trade in this post. Even though it’s pattern sets up on the higher timeframe chart, the concept is exactly the same. You’ll start to notice that after a while – all your good trades share similar qualities.
3. The reference to 11:30 is of course my timezone (UTC+10). The time at the exchange is 09:30. This is the time that stocks commence trading on the Hong Kong Stock Exchange.