Entries are the easiest part in trading. The hard work is done on the higher timeframes. We will now use the HTF Context Areas we found to look for trade entries.
You will slowly start to recognize the patterns better and better.
In the beginning you're only able to see it in hindsight, over time after studying you'll catch up and you'll start to see the moves before they happen.
"Reacting" in trading doesn’t mean always trying to get involved, no matter if the market goes up or down.
Reacting is:
If we do X, I'll look for buys.
If we don't, I'll take a step back and wait.
Many beginner traders mistakenly believe that every trade they make must be a winner to be successful.
However, trading success depends on effectively managing losses and increasing wins.
Neglecting this can result in over-leveraging and inadequate risk management.
As a mentor, I notice this pattern in many traders:
1.
Take every trade you see when you just learned a new concept, not going to work and you will take a lot of losses, because you can't identify high probability scenarios properly.
2.
Instead of taking every trade, you now almost take no trades waiting for the highest highest probability, this can be due to fear, but also due to a lack of experience in finding the balance between high probability and endlessly waiting.
3.
Trader finds balance between step 1 and 2. Taking high probability trades without waiting 3 months in between every trade.
All steps here are normal and part of the process, but if you're stuck in one then you know you need to journal better.
Patience improves your execution.
Patience reduces your mistakes.
Patience helps you controlling your emotions.
Patience is the most important trading skill.