WOAAHHH! and UUUGGGH!
I say that because something is beginning to happen more often -- when I now see certain setups that I know have worked well in the past, I hear a big "WOAAHHH!" in my mind with a sense to take immediate action. Or if it's a setup that has burned me in the past, I just feel like saying "UUUGGGH!" and running away. When the trade does as expected, it further reinforces those setups in my heart and mind.
Stop trying! Be Free!
Eli from Traderhabits.com (great website) has a post today explaining once he stopped trying to make sense of the markets all the time, and focused on himself, he became free to focus on the markets. That made him a successful trader. He makes the point that the best traders "do not try to make sense of the market, they let the market make sense." In other words, wait for your setup (in my case, the "WOAAHHH! moment), then capitalize on your strengths.
I've spent this week with a trading plan that has been very focused and specific, so that I can test my discipline to see whether I can follow my own rules. I thought I would be fighting myself to stay away from the buy and sell buttons, but something strange has happened. It has been surprisingly freeing and liberating. Sure, my trading plan has been somewhat extreme and constricting, but it has also freed me to see the markets in a way I haven't in a long time.
And Finally, The Charts
Here were some interesting charts I saw from today that made me say "WOAAHHH!" However, they were not on my trading plan so I passed. I had ZERO trades today, and I consider myself very successful. "Discipline trumps conviction."
NOTE: These charts are a snapshot of how my charts appeared at the time of these successful setups (they all hit their targets). As part of my pre-market visualization routine, I want to program my mind to become accustomed seeing how my chart appears just prior to the setup bar getting triggered.
|CHU 5 minute|
NLY 5min - has some lower wicks (slightly bullish), but the support level in this descending triangle is quite distinct and clear. Only downside is that the average range of this stock is low. However, on a strict risk/reward basis, this was worth taking. It hit the FE target.
|NLY 5 minute|
WFC 2 min - On the 5 min chart, it looked compelling and bullish, although the setup bar wasn't the perfect green hammer. But when you see WFC on the 2 min stock, how could you not say "WOAAHH!!", this looks like it's going to breakout higher? It's a opening range breakout + fill in the tail + ascending triangle setups all in one. No problems hitting the FE target (went to 161.8% FE).
|WFC 2 minute|