Bullish Win, Bearish Loss — My Trading Day

Traders, I'm resuming the video because I just took a felt 2nd entry short. We have uptrend that needs new high to be tested. I have a lowest low of this pullback, 1st entry short, 2nd entry short failure. Downtrend player with a break new low. So because we have felt 2nd entry short and uptrend needs new high, I decided to drop limit order, risking this trade. It's not the best trade, a little bit more aggressive because we're going quite sideways. This is why I'm also going only for 8 ticks because it's not really that strong of a structure here and we can snap back. So I'm just looking for a small scalp, getting the 8 ticks. We should reach new high eventually, but because it was a little bit wedgy, this is how I'm approaching this and let's see if we can manage to get the scalp or not. Runner is going to be just a bonus in case. We're going to break higher, but right now Tapos goes 1 tick below the single bar and let's see how the trade plays out. Alright traders, we got the scalp, so I'm going to place this Tapos to break even. You can see it worked even for bigger scalp, but because it was quite stacked, I was a little bit more conservative. If I'm going to zoom out, this is my first trade of the day because everything here was very unclear. It was quite a choppy day to trade. You can see pretty much sideways and so this is my first trade for the day. Let's see if we can get one more. Alright traders, I'm tightening the runner below this significant swing. I'm drawing a wider channel because the trend looks quite structured. I also have a lot of bounces, a lot of confirmations here. So we have runner something like 8 or 9 points and now if we're going to keep pushing higher, I'm just going to keep managing the runner. Alright traders, I'm dropping a limit order because we have a lot of high confirmation set up. We had one leg with the break push to new low, but because we were in a range and this is significant retracement, I like the fact that we have double rejection of the EMA combined with the lower high. It's a decent enough bar. There's an overshoot, so I had to skip the setups after overshoot inside the short-term trend. Lower high seems a little bit safer, but what worries me is it looks like a one leg break second leg down, but we exceeded the measured move and it's a lower high. It's not just first second entry short, it actually exceeded the measured move. So for this reason, I'm risking the lower high. If it's going to fail, then overshoot simply generated a little bit stronger pullback in the opposite direction. But let's see if we can get the scalp or not. Scalping for 10 ticks. I use deep limit order to decrease the risk at least a little bit and the trade will either work or won't. Alright traders, EMA got stopped. It's because the down template with the break push to new low and the potential wider channel has overshoot. So a lot of reasons this is going to fail. I made a little mental error that I entered it, but it happens part of trading. On to the next one. So this is the overall structure for today. I was recording my session throughout the day, but because I was mainly waiting and I was redrawing my channels, I wasn't really talking much, so I'm going to do the review after the fact like this. We started with clean down trend that has a break push to new low. As you can see, every trend needs to get new stream tested. Break, lower high below EMA, down trend played out, a little bit of a bottoming pattern and you have a first decent setup, which is a second entry long combined with the high low or the previous failed second entry short. So this is the first decent high probability setup. The stock market is about to open and now we have down trend working lower. We have a decent second entry short at the EMA, but you also have a down trend with the break push to new low. I was also thinking about drawing a trend line a little bit wider like this, but if I'm going to draw it wider like this, I have no early confirmations here. So if you have a wider channel, this second entry short is actually a great trade. But simply when you're watching this live, you have a tight channel with the break push to new low. Especially since the main down trend played out with the break push to new low, it's better to respect shortened trends. You have another second entry short, but you simply are going short right into these lows. There is no good trend line confirmed. When I was watching structure like this, I was eyeing potential spike in a channel pattern something like this. Why am I doing this? Well, because after break new low, there is no reversal. You have bearish imbalance and you have series of lower highs. So because I have so many lower highs, I thought there's a secondary channel, but it doesn't fit that well. You still just are very close to the initial break new low. So you have push above EMA, push below. You don't have no good trade here. Everything is too congested, a lot of doji's. So you can't take trade to either direction and eventually market broke higher. So we have to forget about bearish structure and look for some bullish structure instead. There are two channels. There are possibility you can draw the big one or you can draw the medium one. You can also draw some very tiny micro one, but this is generally not how we draw it because notice how late it starts and the overall uptrend started from this point. So I was looking for felt second entry short above EMA, which actually happened here. It's a decent trade, but there is no break above the signal bar, which means we can't really enter. The market created few pushes higher. You have a mini second entry long, but you don't really want to take it. It's a doji bar below EMA. You don't really want to enter double bar entry. This uptrend just played out and the context is not as strong. I was looking for some low high, but the good bar never happened and then we had stronger pullback. Now, this was pretty much the last bearish attempt to reverse the market if we're about to have reversal. So here, considering felt second entry short above EMA is okay, but the bar is so bad, very far we cannot go long. And after this reversal felt and we traded down again, this is where you have to think about this. Okay. The bears are too strong. Buyers are weak and I cannot take this high low for example. Okay. You cannot take this high low because it doesn't confirm anything. The bearish structure is too strong, too long, and this bullish reversal attempt failed. You expect this bullish reversal attempt to succeed if there is two-legged pullback down like this. With this third leg, you have to be a little bit careful. You would need second entry long combined with a felt second entry short, but you didn't get it. There's a terrible bar. So you cannot take it, break new high, and then nothing just, and you can't even treat this as a trend range because the lows and the highs are not static. Both the support and resistance skill levels are all replaced. So this is really hour and a half of structure where you just have to remain patient because everything played out, nothing good is being offered, flat EMA in all these bars. So this is a very boring structure. You have finally some nice push working lower, you have a break new low. If you're thinking about wider channel, something like this, okay, potential wide channel, you have to forget about this after you see this push above EMA, but mainly this push above EMA. Okay. You have a push up, push down. So this push down may make you think that there is a wider channel, but once you push back above EMA and here again, you have to draw it a little bit tighter with the break push to new low. This uptrend fits well, needs new high. So you saw me taking the felt second entry short, actual decent trade, decent bar, nice bullish push working higher. Our channel has a break, so you expect new high tested, felt second entry short above EMA would be okay because you have overshoot of the correction channel, which means you expect stronger buying pressure in the opposite direction, and you expect stronger buying pressure due to new high, but there is no felt second entry short. Uptrend played with a break new high, but you have significant push to new high again. And what is important here is that we don't have reversal. Notice how broad these two legs down are. You have a double trap, but it's still a little bit too early to take it in my opinion. You just have a break new high. This is not strong bullish structure, but notice how sideways you're getting brought to like a pullback, negating any wider downtrend, EMA holding here and again. And this is why this high low is a great trade to consider because simply market continuation to the upside is too strong. EMA keeps holding, there is no reversal. It's confirming the felt breakout, the double trap, and potential wider channel because the bullish push rate here was too strong, breaking new high, range rules kicked in, market reversed the downside. The reason why I want to draw wider channel is because if I'm going to zoom back, I can see that we've been in trend range for the whole day basically. So you expect prices to go from the top all the way to the bottom. And by the way, you can tell on a higher time frame, I bet you have one leg up, break, like a second leg up. We have one leg break, second leg up. Now, you saw me taking the Laurel high, but it felt hard to take in. Something is wrong about the trade. And the reason why this Laurel high is not that great, even though it's a Laurel high after overshoot, because overshoot is not the problem here. Because you can get good Laurel high even after overshoot. You just have to skip the first, second entry or some entry at the EMA once the correction is still in place. So the Laurel high below EMA is okay. The reason why this trade fell and stronger correction was needed because the wider channel is not structured at all. It looks too much like one leg, broad break, second steep leg down. This wider channel would be okay. If you have more swing, something like this, correction here, correction here, and you end up with four swing confirmation, then the wider channel is more structured and overshoot is not big of a deal. But since you have broad two legs down combined with overshoot, the wider channel is barely to be established and overshoot on top of that. This is why this trade failed. It kind of lured me in because the signal bar is great. It's a decent Laurel high. I still think it's okay trade to have a losing trade. I was thinking about taking break even, but most of the time when you're trading, break even is just the fear forcing you to get out of the trade. And most of the time, if you follow the rules and you're going to scratch and break even, you will still see the trade to go where you thought it was going to go. Especially as a beginner trader, by the way, you really shouldn't scratch and break even because you don't really have the experience, the gut feeling developed to the point where you can recognize that the market conditions changed and your setup was the edge. When you're a beginner trader the first year, it's most likely the fear talking you out of just taking the heat and you don't have enough discipline yet. In this case, it worked, but you have to focus on the long run. So it's better to just not scratch and break even and let the trade play out. It is either going to win or lose. And it's okay if it loses because if it loses, number one, you will learn from it. Okay. You will learn from it and you need the learning experience. And if it loses, you will feel the pain, you will feel the heat and it will help you to not repeat this mistake in the future. Okay. So losing trades when you're starting out actually always are fairly okay. Of course, we don't want to lose money. That's normal, natural. But when you have a losing trade and you'll really learn from this and you feel the pain, it helps you to avoid and make the same mistake in the future. So don't be too upset when you have a losing trade. This is why you don't want to be scratching break even because when you're starting out, you have the emotions all over the place and you're really moving the stop losses. You're scratching break even. You're lowering the target profit because you're hoping that you're going to first reach the small scalp because you're doubting yourself. You don't want to hold the trade for the normal big scalp. All of these things are signs that you're not mentally ready. And part of trading is not just practicing the technical side, the price action rules and the structure. You also need to master and learn how to handle your emotions. So every single time you find yourself in a position, you're refusing to admit you're wrong by moving the stop loss. You are moving the target profit closer to the entry point because you're afraid that you're not going to make the push, make the scalp or you want to take the break even. Generally, this is a sign that you're not as disciplined. It's the fear talking you out of the trade and you cannot trade with fear. You really have to trade without fear, which means a lot of times you need to scale down, trade smaller size. You really shouldn't care about the size you're trading. You're not going to make that much money. This is why traders don't like it, but you're not going to lose much money. And this is why trading small size. It's so important because it will help you trade without fear because you kind of don't care about the size. And once you get more experience, you build more capital. You can then start trading bigger sizes and make the big money. You have floor high here, but it's a double bar entry. Once again, I don't think context is that strong for the bar entry given the overshoot here, but it's okay enough. And then you have brought like a pullback, no reversal again, clear consolidation, great chip potential over high. You actually end up having a nice downtrend over the close, but it's way too late to take any trade. So yes, this was the structure for today. Very boring day, honestly, especially right here. Really makes you second guess the structure. This push up and this push down was a little bit easier, but really over here, very hard to find decent trade. You can find more aggressive trades, no problem. But just not those super easy ones that are this structure. So a little bit disappointing that Friday wasn't a little bit better, a little bit easier, but it's simply how it goes. Sometimes it's easy, sometimes it's harder, and sometimes it's just normal, mundane trading day. So I hope you had a good training. I'm going to wrap it up and I'm going to talk to you next time. Good luck with your trading.