The people who make money in trading or any other profession all have one thing in common: They are specialists. They specialize in one narrow field or focus, and they own it as much as they possibly can. That specialization results in higher pay / more money because most people have not focused on that one thing as much, so they do not know how to do it well, they aren’t as good at it. Same thing in trading; most traders lose money because most people don’t’ have the discipline, patience, focus and passion to commit just ONE THING.
For Snipers, most of them wanted to be a Fibonacci specialist, and that is the main reason, they are with me.
Just last night, they have more than one such opportunities.
Trading is about probabilities! How to minimize the damages? Our trade plan has taken care of the down side. It's all about position sizing and willing to take profit at predetermined levels.
I shall use Nikkei 225 as an example. On 10 April 2018 (yesterday), price has reached our Fibonacci exhaustion level. SOP is to look for a reverse Fibonacci. A "chart pattern" formed on the same day. Price has then retrace to sell cluster. We are risking 15 tics for 21 tics & 43 tics profit. it's all about the "size" that you can "afford" to trade, every trader's capitals are different, risk appetite is also different.
Example for this case study: 25 lots.
First entry was at 11pm+, exited 20 lots at around 12:26am+. The balance risk is now significantly reduced. You can choose to do a re-entry at the same sell cluster zone, but this time, your position sizing should be reduced. At 12:50am+, you have an re-entry opportunity and reached level 1 profit level this morning at around 8:40am.
Money is in your pocket now, the balance risk is no longer significant even if this Fib doesn't reach the second profit level.
Our snipers experience this on "regular" basis. They had just experienced this last night from Crude Oil. But they are discipline & focus, they follow the SOP well.
Focusing on one setup creates discipline. You need to execute with confidence when your setup forms. This is done by creating a trading plan.
Specialists make the most money.
So, are you committed to do what it takes to become a "specialist" or are you going to keep wasting your time, energy and money by trading with many indicators all over your charts?
If you want to turn your trading around or just start on the right path, you really need to narrow your focus.
You can really pick one of two paths: Get serious right now and start mastering one strategy at a time, until you are owner of that strategy, or keep doing whatever you’re currently doing.
Ed Seykota: "everyone gets what they want from the market, be it win or lose".