Thanks for the suggestion...I've always been an all in/all out guy...but I will probably give your suggestion a try. I don't feel like I've made it yet...but I am way ahead of where I was. I am definitely showing decent periods of time where I am consistent.
Thanks again for your nice comments. Your journals were always very helpful to me and I really miss them. I hope you are doing well.
Failure is not an option
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I was fortunate to have several days last week on CL where price was moving with some direction and momentum. Those days I find work very well with my style of trading. My last video is a good example of the type of days I really like. However, last Monday was a day where I actually hit my max daily drawdown. I failed to properly read the prevailing bad market conditions until it was too late.
Like many Mondays that had no news planned on the economic news schedule, it was choppy and lacked a lot of directional moves. After my first two losses, I should have changed course. It was the type of day where my price action setups are doomed to fail on virtually every trade. The best way to play that type of day...after incurring a few losses, is to no longer take trades until an important price level is reached .
In other words, lets say I am looking for a trade and I see a target at a serious point of resistance which is maybe 50 ticks away. I am now seeing that we are in a choppy mode...so I will no longer take any trades at my current price level..short or long. I will now wait until price somehow chops it's way to an area of strong support or resistance..and then see if I have some sort of reversal or breakout type trade. But I will ignore any moves or trades until they reach that destination. So basically on chop, you have to stay out and not get lured in by sudden hints of volatility..because price will often look like it's shooting up and then will suddenly fizzle and reverse sharply on you. Now some people might look at it a different way. They will say chop is only there because you are looking at too small a timeframe...and if you are patient and employ a huge stoploss, then maybe you will be ok. Again, for my system..I don't really like that idea. It seems way too speculative..and if you are wrong about the direction, you could end up taking a big loss. I prefer small losses and trades that are very high probability.
This also could be a day where it makes sense to watch another instrument (for me TF is a great candidate) that might be moving well.
The bottom line is one must have a strategy to deal with those choppy, lousy days before they incur a string of losses. This is one of the reasons trading can seem so difficult. When we have a series of days where the conditions are good, it's easy to believe we have this thing figured out. But then several days in a row can arise that are choppy and suddenly discouragement and failure set in.
Reading market conditions before it is too late is a very important skill and one that I still find very challenging.
Failure is not an option
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I think that is ridiculous. It implies the methodology is what is important, when in truth the importance is the context and execution, neither of which can be "given" to someone else.
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