Trade Less, Win More!
Hello decisive traders and anyone that’s new to the site. I’ve been away from the charts lately and have had to take some time away from trading. The reasons we will get into below, but for now welcome to this blog post where I will cover my latest trading activities and why I’m looking to trade less often but ensure my setups are higher probability.
After hitting a few really good weeks, the markets did in fact start to turn against me, I began to doubt my areas of support and resistance and after a short string of losers mixed in with some emotional trading I decided to shut down operations before I did any serious damage to my account. This is an important thing for anyone still struggling with consistency, if you start losing, your chances of losing more are ramping up against you, you can always just stop trading for a while.
I took a step back and looked at what was going wrong and realised that I had gone from trading just double tops and bottoms on the Ftse to trading them also on the Dax, Dow and Nas and then I even moved onto just taking normal zone trader entries. What was the result? A huge workload of marking up 4 markets but more importantly, I was dealing with a huge amount of information coming my way throughout the day, constantly having to think about and assess each market, every candle and every management point. I was having to process way too much and also dealing with the normal trading psychology. It was a recipe for disaster.
So where am I now? I’ve cut my account size right down and moved back to what I do best, zone trading the ftse and looking for double tops and bottoms only. I am closely managing each position, however depending on the setup I may well let some run past MPs if I like the zone enough and have other confluences going for me.
I am now dealing with a fraction of the information that I was before and my possible setups are much more limited. I have a lot of confidence in the pattern so it seems stupid not to make it my main focus from now on. I will likely sit on my hands a lot more than people who are taking normal zone trader entries and things like alternates. But really I just feel this is my edge now and I need to stick with it.
So for anyone that feels slightly overwhelmed or possibly that their entries aren’t as high probability as they’d like, try adding in a filter like this. Maybe you’ll only take trades from the very best zones or have a trend break or a gap as a confluence, the more you can build into your story for the entry the better. It can of course work the other way against you, where you filter down your criteria so much that you rarely get an entry, then you’ll be more likely to bend your rules just to get in. I’ve sat on my hands for 3 days solid with the double top/bottom plan before and it can be really annoying.
One week back on this plan and I’ve tucked away a 3% week (I am taking these mainly from key zones and using 2% per trade). Thrown in with my usual job which I do on a freelance basis you’ll see that I have only taken 3 trades for the entire week but really that sort of low frequency trading has always worked out best for me. It’s a lazier and less emotionally taxing way forward and every entry I know is high probability to at least make its first Management area.
Really nice entry here from key support and had the added confluence of having the larger structural double bottom alongside the smaller one. Result was a smidge over 2% (1:1)
I liked this one because I also had the MA200 as a confluence and really expected it to make the MP within 1 or 2 candles. As it happened the market gave me a fair bit of heat before getting up there, where I set my stop to BE and was taken out
Really obvious double top here after a rally, coupled with a trend line break. But can anyone spot the issue with this as a trade, I’ll give you a few seconds……………..
There’s no entry candle to get into the position, so I used the 10 minute timeframe and you’ll see we have the engulfing candle to get us into the short, albeit with a lower stake and wider stop.
I decided to come out for 1% as the market pushed into the zone below, my stop was around twice the normal size so I needed 9 points or so just to make 2:1 but was more than happy to finish off the week there.
Thanks so much to everyone who is following decisive trading and my blogs, I am still looking to post regularly but potentially a little less often than once a week. Please feel free to leave any comments below, I read every single one, you can also message me at firstname.lastname@example.org or connect with me via instagram. I hope this post is useful to some of you and definitely give the double top and bottom pattern a look into