You’ve learnt the pattern or setup. Great. But that’s not trading.
Now work on the real-time contextual decision making around that pattern or setup.
Look beyond the pattern itself to the wider context.
Where is the pattern occurring within the larger timeframe market structure? What structure will suggest avoiding this particular setup? What structure might suggest caution, or reduced position sizing? What structure might suggest increased odds and the potential to really press the trade for a larger gain?
Where is the pattern occurring within time? Are there news influences which suggest passing on the trade? Are their time-of-day / week / month factors which might suggest standing aside?
Consider the behaviour of price movement – the pace, the volatility, smooth vs choppy price action.
What conditions might suggest adjustments to the default plan? All-in vs scaling in? All-out vs scaling out? Closer stops vs wider stops? Closer targets vs extended targets?
Consider the real-time decision making once in a trade.
What signs might suggest a loss of edge? How will you react to this new information?
What signs might suggest greater potential than originally perceived? How will you react to this new information?
What conditions suggest a re-entry attempt should be taken, if stopped out of the position? And how many re-entry attempts are appropriate?
Trading is not about simplistic patterns. It’s about real-time contextual decision making.
If you’ve been on the wrong path then it’s time to make a change. It’s time to do the real work.
Best of luck,
Lance Beggs