If your strategy is focused on getting the perfect entry then you might want to continue reading.
What if, from this point forward, your days of choosing market direction were over?
No green & red arrows, no moving average crossovers, no divergence play, no orderflow charts, Fibonacci's or full moons to bark at.
I mean look at all the post on twitter about directional bias. The market could go here...but if it doesn't it's going here..lolz. I believe everyone trades like this because that is what we are fed by the brokers. Educational garbage to keep you and I from pulling any real long term gains.
Well then, why don't people try other methods in the market? My answer is more clear now than ever. When people lose they run. Typical human logic...we do not like to lose so we quit altogether. The tough ones that do stick around are still left nothing to go on except what your broker, trading forums (getting paid for the garbage as well) and social media regurgitate. The same stuff over and over. You get caught on the rat wheel. I did it for 6 years, my blog will attest to this as well as my Topstep Trader contract I earned in 2013-2014. I traded for 13 months in futures using stops and could not sustain. I had to close my account and go back to work. Attempting to pick bottoms and tops over a long period of time is just not sustainable, and this is exactly how the brokers want it.
You should wait for the pullback, fade the top of the range with a tight stop in case it breaks, 8/21 MA crossovers on the 4H...I mean the list is a mile long and none of them work over long periods of time. They work just long enough to give you some hope, its almost like a zero sum game...hmm.
So what does a struggling trader do to get that positive ROI at the end of the year?
Quit focusing on entries and focus on exits. This is easier said than done, I can promise you this.
The funny thing is that the skill is free to learn and everyone can do it.
The skill is called Patience.
If you can learn how to be a patient trader than you can throw away every book, manual and trend trading garbage you ever read and start producing real, long term sustainable returns that are predicated on your account size, not your infantile entry. If you do not have an account yet than I say even better. You trade in a demo account, work your ass off until you do have $1,000 to begin your growth with micro lot trading.
So, how do you trade with no entry signal? The answer is simple, you scale in. Read this article here for more on scaling in. This is a Float the Loss technique that I have been doing for 4 years now and if I may be frank here... it is quite awesome. This is why I am so eager to share with my fellow traders because I have been down the road of entry picking with tight stops and it is no fun.
I implore everyone that has not produced an annual performance report to try floating the loss.
Nobody can sustain the constant failure that using stops brings. Float your loss and manage your risk accordingly. Trust that the aggregate will get you out with a profit every time.
I understand it sounds crazy and nobody is doing it but think about this. How will you ever pay your broker if you are not using stops? There are only two ways. You over leverage your trading size and blow the account yourself, or the market you are trading goes parabolic and never returns back to the mean. These are the only two ways the broker can win if you remove your stops.
Now, go look at the four main Forex markets. EUR/USD, GBP/USD, JPY/USD, USD,CHF.
Everyone of these markets are perfectly functioning markets with millions of top officials that have families, they rely on these functioning markets. My point is...THEY WILL Return to the mean. Look at them, study them, do your homework, test your market with Market Replay from Ninja Trader.
Do not believe the BS out there.
Try something unconventional for a change. Remove those stops and start scaling in. This way you no longer focus on entries...let your focus shift to exiting the market.
If you enjoyed the read then please share or leave a comment as I enjoy healthy discussions on the topic.
Great trading everyone,