Congratulations BLâ¦, now the real work begins
Aside
The turmoil in your thread began with me, whyâ¦. because imo there was no need for you to lose any more money â needlesslyâ¦. Your ego has been kicking your ass
That was then⦠this is nowâ¦
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You asked me about contextâ¦
First allow me to share this;
Most important lesson to learn/ know/ assimilate â Every tradeâs outcome is uncertain
Vital to your success that you wrap your head around this, so you actions always remain consistentâ¦
You, me, any of us â never know what price will do nextâ¦. We simply anticipate what it may do⦠sometimes we are correct.., sometimes we are incorrect
We make money when we are correct; we exit for a loss when we are incorrect
And we never hesitate, fight, or second guess either out come.
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Context
The market is absolutely devoid of any context⦠it is solely based on, and made up of, buying and sellingâ¦
We need to pick a time frame to tradeâ¦, then build context - withinâ¦, and around that time frame
We have a whole assortment of things we can use to build context â so pick what appeals to you
Multiple time frames, lines â horizontal and diagonalâ¦, emaâs.., indicators, time, or whatever..
Btw imo it really doesnât matter what you chose to create context, as long as you can come to rely on it/ them â To take the appropriate action, at the appropriate time
Context tells what price is doing (at least at that moment)
Ema slanted up â price is going up â at least for the moment (I say at least for the moment based on uncertainty⦠and like I said, getting a handle on the uncertainty is where the mental work will come into play)
Ema slanted down â price going down â at least for the moment
Same for trend linesâ¦. Slanted up, horizontal, or downâ¦.
S&R areas;
Price bouncing off support (price ainât going down so it must be going up â at least for the moment)
Same for resistance (price ainât going up, so it must be going down â at least for the moment)
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In a nut shell â the context you build should be telling you what price is doing â while always knowing price can change its mind in a heartbeat â which is why we always use stops
Summarized â Context tells you what price is doing â which way to trade â at least for the moment
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Whereas a setup, tells you where to exitâ¦.
The two questions required to create each set upâ¦
How much will it cost to see if this trade will work (the stop loss exit)
Where will I take profit (the profit target exit)
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Additional comment;
It behooves us to know the personality of what we trade
Example;
How volatile is it⦠how much is the ânominalâ pull back⦠how does it act when itâs happy.., or lethargic⦠anything happen at "around" the same times of the day⦠etcâ¦.
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Knowing its personality, among other benefits, will give you a good way to determine how much room to give your stop so you donât get âshakenâ out needlessly
BUT imo (a different point of view on setting stops)
Building proper gives you a better way of determining stops â youâll know exactly why youâre getting in, where the reason you got in failed, and where to exitâ¦
Proper context also gives you an easy way to identify profit targets
Which way you chose for a stop loss â is of course your choiceâ¦
Either way, knowing the personality of what your trading is vitalâ¦. Never underestimate the power of observation, and being open minded.
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In closing
For the record⦠any of us can tech you to trade in less than a day⦠it ainât no big dealâ¦
But teaching you how to be a trader is solely your responsibility⦠we can give you suggestions, we can give you guidance, but until you do the internal work â it wonât happen
It takes some a life time â and they still never get itâ¦. (iow their ego won't allow them)
It was obvious to a lot of us â your ego, and your reluctance to see reality â was kicking your ass â these are the two things youâll need to work through Sir
Trading on a sim in the mean time is beneficial⦠it give you time to work through the mental⦠it give you time to come to know what your trading⦠it give you time to figure out what tools your want to use⦠and most importantly, it keeps you from losing money while youâre getting your feet under you
Protect capital first, make money second â alwaysâ¦.
As other questions pop up â simply ask
I Sincerely Wish You a Successful Journey Sir
RN
