IŽd like to take this a step further. How do you build in elements into your system that will help you improve your patience.
I noticed the longer you watch your charts the more you will see things that simply are not there. Patterns for example. The more you stare at your charts, continuously waiting for your setup to develop, the more chance you have of receiving the mindset:"My patience must pay off!". This in turn will let you open trades before price has fully developed.
Myself I am a daytrader scalper. Particular setups according to my system are occurring anywhere between 4 to 8 times a day. (London open/close)
Some idea's to manage this patience and which I implemented in the past:
* Timed intervals - set an alarm on a fixed 5 to 15 minutes. Only check the price developments when this alarm goes off. The advantage will be a clear objective view towards the market among with more great timed executions considering the "my patience must pay off!" mindset is fading. One big disadvantage of checking charts at timed intervals is that these intervals often fade away and you will find yourself still staring at charts.
This happens when price developments are nearing a final stage and you simply don't want to miss out on the move. It may still require a bunch of time before your setup is ready.
* Indicator triggers - Alarm set on divergence, RSI levels, MA cross etc etc
Alarm will go off according to the variables you putted in your system. Triggers like this will ease the mind in your trading sessions and save up energy for the remainder of your trader session. However, obviously the disadvantage here is that most of these triggers will occur after the move has taken place ( except for divergence ). In order to work effective in my opinion you still need to use these indicator triggers in conjunction with market structure in order to get a low risk entry.
* S/R / fib / trend line alerts - Working with this at the moment and this clearly beats the other two. It combines market structure and puts it into alarms. Market structure always creates good order flow at important S/R, especially in confluence areas where s/r + fibs + trend lines are coming together. Important levels are really the only thing that matters. Check price interaction with these zones every so often when your alarm goes off. Then feel free to add in a possible divergence/OB/OS variable afterwards in your procedure and pinpoint your entries. This will help building your patience and still make good use out of market structure.
IŽd like to take this a step further. How do you build in elements into your system that will help you improve your patience.
I noticed the longer you watch your charts the more you will see things that simply are not there. Patterns for example. The more you stare at your charts, continuously waiting for your setup to develop, the more chance you have of receiving the mindset:"My patience must pay off!". This in turn will let you open trades before price has fully developed.
Myself I am a daytrader scalper. Particular setups according...
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Have a plan for the day or for the week or whatever also do not 1. You need to be flexible Then you can use even limit orders and step away if you determine risk parameters etc. Also when i for example get stopped out my analysis was not right (for example i want to buy at some point. But the market goes through it like butter and the markets get eaten for breakfast. I change my plan and sell the first pullback. This last 1 had huge effect on my own trading mostly because if you only have 1 plan you only focussed on that so for example you got to biased bias is sometimes not good so have plan a and b..
