What do we do here?
Well there’s not a lot we can do. It’s missed opportunity.
And yes, I know that with hindsight we can look at the lower timeframes and find ways we “could” have got in. But we’re not hindsight traders!
It’s missed opportunity. It’s gone. And our job is now to get on with the business of being a trader.
We’ve covered this scenario before.
See here for example, where we discussed an effective mindset hack through affirming – “It was never mine to take. If it was, I would have taken it. Let it go!”
So I did this.
I let it go.
I took a quick walk and cleared my head. And came back to the screens.
But let’s be realistic here.
This next trade… is NOT going to be easy.
The first trade after missed opportunity can be one of the hardest trades.
The last thing I want to do is get smashed twice. Following up the missed opportunity with a losing trade.
I know… this shouldn’t be any concern… every trade is independent and our edge plays out over a series of trades!
But I’m human… and even having carried out my regroup & focus routines… I recognised residual emotion.
So what to do?
Here were my actions:
1. Extend the break – NO TRADING. Let this whole price swing play out with no intentions to trade.
2. Use this time to absorb myself in the price movement. Watch and feel the bullish and bearish pressure play out within each candle.
3. When this price swing is complete AND I feel in sync with the price movement, it’s GAME ON. Define the new trend structure. Project it forward. And seek the next trade opportunity.
The intent here is to get myself “out of my own head” and focused back on the price movement.
Be careful in the pullback from here. Initial strength in the rally was news driven. But note how it weakened into the top of the swing. YTC PAT readers – this is a Second Principle scenario. Not First Principle. Be patient here.
And if it goes too deep, consider the possibility of this eventually transitioning into a sideways trend.
Until then though, I’m still looking for buy opportunity for continuation higher.
Well done to anyone who might have traded something like an opening range breakout strategy, off the first 5 minute candle. You got a home run trade today.
For me though – it’s one of those days with missed opportunity.
That happens. It’s part of the game.
What is important though, is how we respond.
Take a break. Remind yourself – “Let it go. It wasn’t mine to catch. If it was, I would have caught it.”
And if there is still residual emotion, just watch and wait and let the next swing (or two or three) play out. There is no hurry to trade. Absorb yourself in the price movement. And then… when the structure becomes clear and you feel in sync with the price movement… only then is it time to trade.
Happy trading,
Lance Beggs