This is a question I get from time to time.
Quite a reasonable question, I guess, for anyone used to trading on much longer timeframes.
The answer is simple. And if you do it right you’ll find that there is plenty of time. Even on a 1-minute chart.
Let’s repeat that for effect…
Lower timeframes require that you see the trade setup in your mind, well before it shows up on the chart.
In fact, I’d suggest that this is good practice, regardless of your trading timeframe.
It’s a matter of visualisation – plotting in your mind the most likely path for the next couple of price swings. And becoming clear in your mind about EXACTLY what you need to see if these price swings could offer a trade.
Think of it like a visual form of an IF-THEN statement. “IF price goes here and looks like (this) THEN I will have potential trade opportunity.“
Focus is always kept AHEAD OF PRICE.
In this case, the trade planning was carried out 2-3 minutes prior to the setup actually occurring. That’s quick. Often a trade idea might be visualised 5 or even 10 minutes before price sets up for entry.
Either way, it’s plenty of time.
Trade entry should not be a 100% reactive process. It should be forward looking. Pre-considered and pre-planned. And only acted upon if price should subsequently prove your forward planning to be correct.
The same goes for trade management. Keep your focus and planning ahead of price.
Where is price going if the trade premise is still valid? How will this look on the charts? How will you manage your stop and target orders if this happens?
And where is price going if the trade premise is no longer valid? How will this look on the charts? How will you react if that happens?
Keep your focus and planning ahead of price.
If you can do that, then there is PLENTY of time to plan your trades, well before price actually gets to the entry point.
Happy trading,
Lance Beggs