Have Another Piece of the Trading Jigsaw
January 23, 2015
2 Min Read
It has been a busy week, in between candidly filming ducks at the park and defining the finer details of level failures as a trigger for reversals, I have managed to take a look at the markets and I don’t like what I see.My problem is simple, with the central bank announcements this week, it is clear that many people will let their heart rule their head and take trades based on assets that appear to be good value.They could turn out to be correct but this is not a recipe for prolonged trading success that is worthy of telling the grand-kids in the style of a “back in my day” story (We have all heard them).
A week in review
This goes against three important principles for successful trading that I have mentioned this week:1. Self-discipline is king;2. Pay attention to both the micro and macro environment; and3. Everything you do must make logical sense.
The next piece of the jigsaw
I would like to introduce you to the concept of using volume in partnership with the level failure lessons to really shore up those entry points.I have recorded a video to explain what I mean using live charts and for you to make sense of a fantastic ‘fruit-based’ analogy. I’m only going to introduce you to the concept for now, as I want you to spend some time observing how this works in relation to live markets and your own approach before I up the ante and show you how it can be done with conviction.