Tips on the Mental Game

Quote from BobbiDigital:

RN,

I attempt to trade the same basic entries the first half hour or so on 1 min chart switching to 5 min when there's enough formation to look at. I look back at hourly and daily for S/R, to see if price is lingering near any 'key' levels. For instance, if a stock is up on the day consolidating at its high. That's where my analysis gets murky.

Perhaps price tests and fails the shortest TF it will go back and test the longer TF level (prior), repeat, etc..I cannot find where and when price is most likely to move -

sometimes price moving towards noise is good, as it may traverse the whole range and then some (stops), but sometimes it bounces right off. Sometimes no resistance overhead is good, weekly, monthly, 52 week highs, but sometimes it is just fizzing out.

Do you like to see S/R overhead (noise/high volume, key levels=>stops) en route to profit targets or prefer a prior break of S/R and price potentially just taking a breather before continuing the trend?
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Hey BD

First let me say I do not understand your question(s).., this post.., or your thinking


Trading the same setups off a 1 min.., and then?? off a 5 min – are totally different setups – unless your signals are converging… AND/ OR you understand how smaller TFs are the foundation of, and build – higher TFs

If the signal is not converging… or you don’t understand how smaller TFs build higher TFs – then you’re blind folded – standing in a dark room – while trying to hit a moving target


When our analysis is murky – the solution is easy – we sit on our hands and observe/ analyze until the murkiness clears


Btw – saying you use the 1 min during the first half hour (aka the open… aka one, if not THE – most volatile times of the day, on a reoccurring basis) – is a train wreck in the making

Unless you’re trading momo, and from the way you’re describing S&R.., PA – I don’t think you are – you need to stay out and observe until you get a read / idea what’s going on

No patience imho (probably stems from not wanting to miss a move – learn to let go)


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2nd sentence – let a higher TF be the guide, while obviously never ignoring current PA

3rd sentence – no clue what you’re saying / asking

4th sentence – S&R is constantly surrounding price to one extent or another - what I like to see, is what Bone posted – an ambush point, and of course a target

Ambush point defined;
Where smaller TF signal(s) converge with higher TF signal(s)


Signal(s) defined;
Pick one – there are many


How to identify a target;
Use a higher TF in conjunction with horizontal and/or diagonal lines

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imo

Sounds as though you do not have an actual trading plan – admittedly I could be wrong though



Not meaning to sound like a prick with this post…, but damn your thought process is muddled

RN
 
RN,

Price action VIA charts: I understand how/why/where trends start. I understand when a trend continues/ends/fails. I get how price builds on itself in different timeframes, though obviously not how to take advantage of the ambush points. But I do see the elephant footprints.

I'll try to better state my thought process:

Daily chart for direction, hourly for S/R, and 1,5, for entries

At the open, price has to build on itself based on its reaction to the opening price so I'm more comfortable jumping in the shortest TF as PA unfolds (assuming its in the direction the daily says its going)

What I stated prior was that inevitably when price fails, say, to move higher thru its 1 minute box it will go look for support at 5 minute all the way to the longest TF etc (understanding it can bounce, drop, or consolidate)

Ambush points, like confluence without the mumbo jumbo indicators right? Is this the only time I should get in a trade? In other words, when price has not failed on any TF.

If you still don't get my struggles, it is simple. We know how price moves but we never know how far it'll go. I can be right on a move but it could go 2 cents and I want to find (and struggle to find) the 2 dollar moves. (often early in the day too)

I hope this makes sense. Thank you so much. You are the closest thing I've had to a mentor.
 
Also I have developed a trading plan several times, but then learn more and outgrow the methodology. I'm about ready to give it another go.

I just started scanning for stocks within 5% their 52 week high. I figure there is guaranteed interest in these, so human emotion is involved => opportunity. This should eliminate the real duds. I also have a couple intraday filters to find stocks that have moved 1-2 dollars and then consolidated.

It seems important to find stocks I like on a daily chart and monitor a few for setups intraday. I just started at a prop firm in Chicago and was watching new hi/lo scrollers then trying to analyze its past on the go. Seemed inefficient so I flipped it around.
 
Quote from BobbiDigital:

RN,

Price action VIA charts: I understand how/why/where trends start. I understand when a trend continues/ends/fails. I get how price builds on itself in different timeframes, though obviously not how to take advantage of the ambush points. But I do see the elephant footprints.

I'll try to better state my thought process:

Daily chart for direction, hourly for S/R, and 1,5, for entries

At the open, price has to build on itself based on its reaction to the opening price so I'm more comfortable jumping in the shortest TF as PA unfolds (assuming its in the direction the daily says its going)

What I stated prior was that inevitably when price fails, say, to move higher thru its 1 minute box it will go look for support at 5 minute all the way to the longest TF etc (understanding it can bounce, drop, or consolidate)

Ambush points, like confluence without the mumbo jumbo indicators right? Is this the only time I should get in a trade? In other words, when price has not failed on any TF.

If you still don't get my struggles, it is simple. We know how price moves but we never know how far it'll go. I can be right on a move but it could go 2 cents and I want to find (and struggle to find) the 2 dollar moves. (often early in the day too)

I hope this makes sense. Thank you so much. You are the closest thing I've had to a mentor.
More...



Now this is a great post…, makes perfect sense…., and is one we can work with

Whether you know it or not – you’ve covered a lot of material…, so allow me to split it up and comment in a few subsequent posts…


Please breakdown/ question each response as you wish


btw; I’ll be mixing up the sentence sequence a bit – for ease of commenting – but won’t modify your sentences (unless I screw up that is :p )

RN
 
Daily chart for direction, hourly for S/R, and 1,5, for entries
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This’ll work.., but only ONE entry (trading) TF – make it the 5 minute… Use the 1 minute to fine tune you entries on the 5 minute

Only one trading TF mind you - decide then never change it



At the open, price has to build on itself based on its reaction to the opening price so I'm more comfortable jumping in the shortest TF as PA unfolds (assuming its in the direction the daily says its going)
More...


BS – you, me, and every other trader - has absolutely know idea which way price is headed at the open… and more importantly we never know what path it’ll take to get where it ends up

We could go broke long before price arrives at where we though it was headed
 
I'll try to better state my thought process:



What I stated prior was that inevitably when price fails, say, to move higher thru its 1 minute box it will go look for support at 5 minute all the way to the longest TF etc (understanding it can bounce, drop, or consolidate)
More...


Imo (really in fact) you’re approaching your analysis… and trading – bassakwards


FIRST – always identify S/R on the 1hr (horizontally and diagonally) – THEN – drill down into your lower TFs, with this information…, to understand where price is / and what it is doing - on your trading TF

Always keep/ view/ trade the lower TF S&Rs / price movements in relationship to the bigger TF (1 hr in your case)

Never the other way around

Think.. analyze… trade – Top down… never Bottom up

And even though your trading TF (the 5 min) is next to the lowest – always keep the bigger picture in mind… and in accordance with – your trading actions on the 5 min


Btw 1 hr is fine for your longer intraday TF…, BUT never be hesitant to change your longer (1 hr) TF for a better read (eg 30 min.. or possibly multiple hr – such as a 2…, 3…, or 4 hr chart) hint… hint…
 
Price action VIA charts:

I understand how/why/where trends start.

I understand when a trend continues/ends/fails.

I get how price builds on itself in different timeframes, though obviously not how to take advantage of the ambush points.

But I do see the elephant footprints.

If you still don't get my struggles, it is simple. We know how price moves but we never know how far it'll go. I can be right on a move but it could go 2 cents and I want to find (and struggle to find) the 2 dollar moves. (often early in the day too)
More...


If you understand where a trend (move in my vernacular) starts and ends – then why is not the place where it ends – your target



I’ve posted how to identify targets in two previous posts…, you’ve stated you understand when a trend (move in my vernacular) ends….

Think though and elaborate on this one please – specifically the dilemma you’re encountering identifying a profit target


On a different note - missing the 2 dollar moves (moves early in the morning) - thought it was a fear of missing out btw - is something you'll need to get a handle on and develop some patience for

Look at it this way - that two dollar move - could just as well end up being a two dollar loss at this stage - better to miss it - than get bit in the ass from it
 
Ambush points, like confluence without the mumbo jumbo indicators right? Is this the only time I should get in a trade?


In other words, when price has not failed on any TF.
More...




Ambush setups are the most straightforward(**) trading there is

They are not momo trades… nor are they pseudo scalps (trading pullbacks/ tight ranges/ counter trend) nor are they reversion to a mean – all of which require complete dexterity…, and more experience

Ambush trades are straight up – identify a set up – wait for the set up to materialize – trade it – it either works or not…. On to the next one


It does not include any trading off the 1 minute at the open – in fact you need to wait till the initial (opening) push – which is typically counter to the way price ultimately moves – is over

Ever hear the high/ low is typically made in the first 30/ 45 min – well it is most of the time.., then of course price heads the other way for awhile...

Way better to catch this second move..., than be bit in the ass by the initial move

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Losses not only extract money from us... they also extract psychological capital - which until we develop the proper mindset, affects us the rest of the day .. Possibly even week, month, year, lifetime

Each time you take a shot (trade) - make it count

The predominant action - a trader takes - every day - is sitting on our hands

Please take this last statement to heart

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(**) NOTE; I wanted to use the word easy in place of straightforward…, but until your mind is right…, none of this is easy (been there and done that)
 
I hope this makes sense. Thank you so much. You are the closest thing I've had to a mentor.
More...



Back in the day there was a member here called Mindtrade – I jumped his ass for calling me a mentor... I felt bad when I did it… I still feel bad about doing it

I am not a mentor….

A mentor can teach someone to do something, then that someone can do it….

Trading is not like that…

To trade successfully a person must reach down inside and find / create the proper mindset

No one can do that for another… it must come from within

But once a person has created / found that proper mindset – that is when trading becomes easy

That is when trading simply becomes – find a set up – place a trade – it works or it doesn’t – on to the next one

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I hate that I jumped Mindtrade…, he didn’t deserve it…

So how bout simply being two traders – talking shop – please



You are Welcome Sir

RN
 
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