Seeing a symmetrical triangle down on the daily and below. I’m aware of the potential resistance at the 200dma and 40wk line. If we bust above there, we’ve got a clear run to highs at 148. Do we get there? Who knows. That’s why we look at the target as a POTENTIAL and we call it “Potential R”. It’s the next major level of resistance. . Always manage your reward:risk throughout the trade.
Daily and below
This gave us a potential 8R trade! I love that s***!
$CYBR broke out Nov 18. Here’s how I’m playing it.
I am playing it on the 2HR. While I’m AWARE of many timeframes (I keep track of monthly, weekly, daily, 2hr, 30min, 15min), when trading, it’s important to trade on just one.
I hit 1R (1x the amount I risked) when CYBR touched 119.76. That prompted me to raise my stop. Support developed just above my entry point and I moved my stop up to 116.10
I’m using the 5ema as a trailing stop for 1/4 of my position. Same deal for the 10ema. If we close below that, I’ll sell another 1/4.
My ultimate profit target for this is 148. IT’S RARE to get there smoothly. With that profit target, this trade started out as an 8:1 reward:risk. IF at any point the price action makes the ratio less than 3:1 w/o creating a fresh area of support, I’ll take 25% off.
What are your thoughts? Drop’em below or join TRADER’S MINDCHAT and engage with us 24/7!
Have you ever gone to a gym or been to a beach and saw those guys with the gigantic arms and scrawny little chicken legs?
This reminds me of a lot of traders… Way too many traders treat their trading like this. They focus on charts and not much else.
Are you guilty of this? I was at one point.
From my own experience and from the traders I’ve spoken with over the years, this never ends well.
Most blow up their accounts.
Only a few persevere long enough to learn that it takes a helluva lot more than charts to be a successful trader!
What Leads ALL Traders To Success…
Whether they realize it or not, ALL consistently successful traders follow the Trading Mindwheel.
You might be thinking “WTF is a Mindwheel?”
It’s the 7 core things all traders need in order to zoom down the path of success.
When any one of these are missing, it’s like trying to drive on a flat tire.
If you’ve ever felt stuck at any point in your trading, I can guarantee it’s related to a hole in one or more of these areas.
Mastering the Mindwheel IS your ticket to trading success!
Where To Start?
Are you a newbie?
If you’re relatively new to trading, start with 1. Environment and work your way around the wheel.
Have you been trading awhile?
If you’ve been in this game a while, do a self assessment. On a scale of 1 (I suck) to 10 (I’ve completely mastered this), how do you rate yourself in each of the 7 Mindwheel categories?
The more honest you are with yourself, the faster you’ll be able to patch those holes and get speeding toward your goals.
The 7 Core Parts Of The Mindwheel
Does your trading environment fit you? When was the last time you checked? Do you have clarity? Could key elements have greater clarity?
2. Trade Style
Have you explored a variety of trading systems and styles? Have you found the timeframe that works best for you? That feels right? There are thousands of tactics, the key is lining it up with your personality.
Where do your trades fall on the Fear vs Greed spectrum? Are you closer to the betting the farm type or clinging to pocket change? Winning traders find balance, leverage, and asymmetric reward:risk. They manage it throughout the trade.
4. Pattern Mastery
The market IS human emotion on parade. We can see collective hope, fear, & greed materialize before us. Learn how to read it.
5. The Art Of Trading
Betting the right amount at the right time, and ensuring it happens rests not only on you, but on your team (including your broker). The Trade-Emotionator can help your figure that out!
6. Write Right
Trading w/ clarity involves writing out your plans, reviewing them, and tracking them. It helps us learn and evolve. The Trade Tracker gives you core questions to ask yourself on every trade.
You made some great trades, made some money, but riches and wealth aren’t the same thing. What are you doing with it? How is it continuing to grow, to serve you, to serve others?
This is the step that keeps tread on the tires. Keeps you motivated. Helps you enter the top 1% of traders in the world.
Neglect this step and eventually your tire becomes bald. It’ll get a flat. You’ll lose your passion and end up walking the rest of the way.
You Don’t Have To Go It Alone
Trading is akin to learning how to ride a bike. You can learn on your own or have others help you.
Whether you have help or not, you’re still going to take some bumps along the way.
The difference is that you’re FAR more likely to learn how to ride if you get help and you’ll be doing it a helluva lot faster too!
No one talks trading like this.
In all of the trading books I’ve read (my personal favs are here), courses I’ve taken, or seminars I’ve attended over the past 20 years, no one talks about the Mindwheel.
That’s why I’m constructing this blog, developing a course, writing a book (look for it mid-2020), and coach traders one on one.
Want me to be YOUR trading coach?
I’m very picky about which traders I work with. I only work with serious action takers who are open minded.
If that sounds like you, check out the rest of the details on the coaching page.
Book the FREE 20min Sesh and we’ll assess where your trading is at right now. Where you’d like it to be. And the steps needed to get you there.
Have you ever focused so intensely on finding a pattern that you started seeing it everywhere?
Yeah, me too! And it was nearly my undoing…
I blew about a third of my trading account before I learned any better.
This happened to me pretty early on when I first discovered William O’Neil and the CANSLIM method. His book “How To Make Money In Stocks” is phenomenal and I consider it a must read.
Just be careful you don’t make the same mistake I did.
One of the first patterns I learned about were cup with handles. I learned about the shape, depth, time they typically take to form, and the best times to find them.
I studied this chart pattern like I was preparing for my keystone project in grad school.
I thought I was well prepared, practicing this one pattern over and over again. The way Bruce Lee practiced one punch would allow me master of this one pattern.
Unfortunately, this wasn’t what Bruce had in mind. I had misapplied his lesson and learned the hard way…
A Hard Realization
Rather than having the massive gains my trading heroes William O’Neil, Gil Morales, Chris Kacher, and others had, I had a dwindling bank account, the crushing weight of self doubt, the feeling of wasted time, and loads of confusion on my mind.
What was I doing wrong? I had studied for countless hours. Applied intense focus. What the hell was I missing??
I was missing PERSPECTIVE!
I had become so insanely focused on finding cup with handles that I was missing the bigger picture.
It was the equivalent of a doctor examining a patient’s broken hand while missing the stroke he was having!
In trading you need a broader perspective. If you want to win you must always keep the bigger picture in mind.
Stop Hunting For Patterns
You shouldn’t be hunting for patterns. Especially not with a magnifying glass like I was doing.
Take a broader perspective. Start with an awareness of the types of patterns that are out there. The main bullish ones are:
Cup w/ handles
If you’ve been in the game a while I’m sure you can rattle off plenty more. These are the most common and you can do quite well with these alone.
The main bearish ones include:
Head and shoulders
Again, there are many others but these are the most common and you’ll do fine with them.
What you want is awareness of these patterns. Stop hunting for them. Simply observe and wait for them to present themselves.
Take a look at the sample above. I used to behave like “Them” all the time. If you are so intensely focused on finding cup with handles, you’ll find it!
Be careful where you place your focus. In this case, the old me would have found what I was looking for in the super bearish right shoulder of a head and shoulders top!
So how do we gain a better perspective?
Shifting Our Focus From The Leaves To The Forest
You want to stay in step with the market. Be in tune with it. Feel it.
Sound airy fairy? I thought so too at first! But it’s actually a deeper understanding of the market that we’re all after.
Do you want that crystal ball that some traders seemingly have? Well, this is how you get it!
You want to be in the moment. What many athletes call “the zone”. Mark Douglas calls it that too. I highly recommend checking out his book “Trading in the Zone”.
When you step back and see the bigger picture, you can see multiple things happening at once. The long, intermediate, and shorter term time frames become clear.
You can see if the market is moving up, down, or sideways. These kinds of things are pretty easy to spot! A child could do it.
Why then is it so hard for so many to win at this game? Why did I fall flat on my face for years??
Where Is Your Focus?
A big part of winning at trading comes down to focus. The problem is most of us tend to focus on the wrong things in the wrong ways at the wrong time.
I did it for years. Focusing narrowly when I should have been using a wide angle lens.
Focusing on chart patterns when I should have had an awareness of them and allowed them to simply manifest themselves.