Awe crap! I missed my trade entry! What do I do now? Do I go in and chase the trade? Or do I just calm my butt down and wait for the next entry?
We have all been here before, more than once… At least if you have been trying to trade for any time at all. If you are brand new, then you can learn allot from other traders who have been at this for a bit.
Taking Your Emotions Out Of the Trade
This has been the biggest thing that I have had to try and learn, and still struggle with. Trading can really be either one or two things, it can be a business where you are strategically following a plan to make money, or you are a gambler. There are really no in-betweens.
The one thing that separates a business vs gambler mindset with a trader can be wrapped up into one word, emotions. Emotions can absolutely wreck your portfolio. It is really best to go at it with a near cyborg mentality. This is one reason bots are basically controlling the trading markets, haha.
Resist Chasing A Trade
One of the worst things to do when you miss an entry is to chase a trade. This is when your emotions get in the way and instead of just letting it run and catching the next phase, you go jumping in, many times for a quick reversal to happen that can quickly go the wrong way. I know, because this has happened to me countless times. As a matter of fact, I am writing this article to talk myself out of chasing a trade that I have been watching, but missed because, well humans have to sleep.
The best thing to do is to wait for the price to settle at the next support or resistance levels and find the next entry point. The biggest lesson is that if you miss it, just let it go.
Let The Trade Come To You
This is something that sounds extremely simple, but yet, most people completely over-complicate things. Markets do three things, the go up, they go down, or they go sideways. If you can predict which direction the market is going to head next based on technical analysis, this means finding trends, reversal points, and momentum confirmations based on the charts.
Think about it like this, if you missed a boat, you wouldn’t go jumping in the water and swimming after the boat would you? If you would, well, you have a whole other set of issues, lol. The thing to do would be to either let the boat come back to the dock, or go find another boat to get on.
Charts are not a magical all seeing eye either, you have to remember this is all a game of statistics, probabilities, fundamentals, and really simple supply and demand. So learning as much as you can about how the markets react to different things on the charts can really help you get a leg up.
Learning the right tools can really help you in determining your next move if you miss out on the trade you wanted. This means letting the markets come to you. Remember, the boat can move allot faster than you can swim…
Zoom Out, Chill Out, and Resist the FOMO
This is the biggest lesson that many traders, especially intraday traders can’t grasp. Too many people are focused on lower term time frames for their trades because they want the frequency. These are scalp traders. But many times, scalp traders will miss their trade entries entirely and will cause them to FOMO into the trade.
So instead of the fear of missing out, you can instead zoom out to a higher time frame and find the in-fact you may have not missed your entry at all! The higher time frames show a more accurate account of what is going on because there is more data inside each candle. You may be able to find an even better entry point than you though you had.
Good luck out there in these crazy markets! Just know that this is not financial advise, just some dudely wisdom for those that like to dabble in the crypto markets, or to those of us trying to build businesses.
Until next time, come follow the markets with me on https://coin-logic.com!
Be Cool, Be Real, and always Abide!
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