The background and inspiration for today's article came after reading a great book called The One Thing. In short, it's about how the greatest people and companies that have had massive success are always masters of a core process or thing. You perfect the thing and then repeat the process. They just stick to the one thing they're good at and scale from there.
The One Thing is about reducing clutter and stress and getting better results in less time. It shows you how to give your goal momentum, whatever that may be. By mastering what is important to YOU, this book will help you increase your productivity and reduce your stress. It is a great book worth reading or listening to in the audiobook (maybe on your next vacation) and it will help you a lot as a dealer and person.
As traders, we should learn from this book and use the concepts it contains by focusing on one thing and mastering it. This means effectively mastering and perfecting our trading strategy and everything surrounding the execution and management of this strategy, effectively the trading process and trading plan.
I also encourage you to find the trading strategy that suits you best or that you like the most (for me, it would be pin bar trading) and stick to it until you have mastered it and feel it to own it.
Master your "one thing" …
Here's what I would do if I was in your shoes …
- I would master my trading strategy by becoming a master of the process. Everything from the trading signal to entry, stop loss, goal, money management and my mental state. This is the only thing you can master, together it is the process. You essentially master the process of trading with the entry signal of your choice.
- Your goal is to focus on this “one thing” without distractions and without the obsession to make changes, add variables and search for the “next best thing”. That is the key. You have to believe in what you do, stick with it, rinse and repeat. Eventually it becomes a positively enhanced trading habit and the by-product or side effect of it is trading success.
- Many traders confuse this. They think that first they make money and then they become an ordinary trader who does the right things. It doesn't work that way. You essentially have to believe in the process and "blindly" follow it before you start making money. That is really one of the keys. Trust the strategy, trust the signal you want to control, and trust the process.
- Example: Franchise companies like McDonald & # 39; s are so successful because they develop and implement focused processes and then execute them again and again without errors. They are committed to a proven model and concentrate on it. They narrow their focus instead of expanding it. Most traders do the opposite! There's a reason why McDonald's doesn't offer boxes of chickens like KFC and why KFC isn't trying to sell a Big Mac. They cling to what they are good at, what they have and have mastered.
- Another example: Do you remember what happened when Michael Jordan, arguably the best basketball player of all time, tried to play professional baseball? Yes, me neither. The fact is, he wasn't that good at it. He was / is the best basketball player of all time because he concentrated so closely on this one sport that he literally dominated it and to date no one has achieved his achievements or skills. The fact is that you cannot really be super good at many different things, as the saying goes: "All-rounder, master of nothing". If you want to be an "all-rounder" that's great, but you won't make much money, I promise you.
- The people who make money from trading or another profession have one thing in common: they are specialists. They specialize in a narrow field or focus and own it as much as possible. This specialization leads to higher wages / more money because most people have not focused so much on this one thing and therefore do not know how to do it. You are not so good at it. The same in retail; Most traders lose money because most people don't have the discipline, patience, focus, and passion to commit to ONE thing, a process, and become a master of the Yoda level.
Before you read on, ask yourself now: Are you determined to do what you need to become a master trader, or are you still wasting time, energy, and money twirling your charts and hundreds of different trading indicators Trading blog subscriptions that tell you otherwise?
Burn that into your head, print it out, love it …
Here is the setup I would choose first: the pin bar price action pattern. Note: The destinations are 1 or 2R or 3 or 4R, depending on which entry you have made. If you enter a limit entry near the pin 50% level, the risk / reward ratio potential is higher.
This is what ideal pin headers look like (print this image and add it to your trading plan or hang it on your office wall if you'd like it will help):
1. Now you know what you're looking for when you hit the real charts. They're just looking for super-obvious pin bar signals, bullish or bearish, with long protruding tails. The tails should stick out of the nearby price action. By practicing only the most obvious, you are giving yourself the best chance of winning a trade, because the more obvious the pinbar, the greater the chance that it will work.
2nd. You can read some trading mantras every day or go through some mental trade confirmations before you start scanning the charts. I know that may sound a bit strange, but believe me, it works. It is about putting yourself in the right trading mentality before you look for trades. Commercial psychology is of paramount importance for commercial success. Believe me.
3rd I suggest you have an advertised trading plan with screenshots of your setup. You can even print out the charts above and the real charts below so you have examples of what you're looking for. However, keep in mind that each setup is unique and always slightly different. However, the basic idea is there: a pin header has a long, protruding tail and should normally flow either with a key level, the dominant trend, or both. Don't over complicate it!
4th Remember, we're mainly looking for 4-hour or daily chart pin bars here. 1-hour charts are fine, but I don't recommend them until you've mastered the higher timeframes like 4 hours and daily. You will find that it took some time for these trades to reach the 2R or 3 or 4R goals achieved with the risk reward tool, BUT the profits would have been huge. We are not aiming for daily trading because it is not sustainable. We want to become skilled, savvy chart technicians who swing trade or position markets to bet on big market moves and act in a relaxed environment, forgetting and forgetting the end of the day approach.
Examples of real pin-bar setups to model your trading plan according to:
Below we see two bullish pin bar buy signals that were about "perfect" as you will see. They merged with the previous underlying upward trend and also formed at a key level of support.
Note the potential risk reward of 4R for the second pin bar if you entered with my "trade entry trick". This is an optimized entry, where you enter after a return at the pin tail near the half point of the pin bar. You will also find that it took some time, about a month, to hit this 4R. However, if you make four times your money on a trade, can't you wait a month? I can. Discipline and patience are HOW you make money in this game, NOT trading at high frequency.
Here is an example of a counter trend pin bar sell signal. This was also almost "perfect". It formed at an important resistance level and had a large protruding tail, which we have to see when we trade against the trend. A week and a half later, there was even a nice entry for the second chance for anyone who missed the first pin bar. Note: Although I don't usually recommend beginners to try counter-trend trading, this can be done on the daily chart if a signal is forming at a key level. If done correctly, it can lead to large movements and even complete trend changes.
Here is the potential risk reward if you entered a “standard entry” at the pin bar low and a stop loss above the pin bar high. Note that 4r or more was possible this way. If you had entered a 50% retrace-optimized entry as described above, you might have received 8R or more!
Key findings you should remember:
- Building focus – too many signals, strategies, markets, news. – When you focus on a signal, you get the focus you need to become a master of it. To become good at something, you have to focus on it and only on it. Whether you write an article like this, read a book, learn to paint, do sports, or EVERYTHING – you will never be good at it if you have the focus scattered and broken. If you focus on one thing, you can get better at it faster and more obviously, right? But most traders overlook this fact when looking for quick cash. The laser-like focus on ONE setup helps you make money faster than trying to learn 20 different trading signals and strategies at the same time. It sounds obvious, but it seems human to try to do and learn too much at once. which leads to exhaustion and giving up. Instead of really committing to one thing and owning it.
- Bruce Lee was the master of his domain. Be your master. Was Bruce Lee good at everything? No, but he was THE BEST in the martial arts he practiced because he focused intensely on it. If you want to trade money, you need to limit your focus and be obsessed with the subject of that focus.
- Don't doubt yourself and don't let fear ruin you – people often think they are successful, and they often make things much more difficult than they are. Often the hardest part of success, be it in retail or business in general, or even to get fit, is getting started. Don't sit there staring at the walls thinking how heavy XY or Z could be. Just start with it and you will find that you enjoy it more than you thought (and that it is not as difficult as you thought!)
- How do you become a master? If you break things down into smaller pieces, don't overwhelm yourself by trying to reach the high goal first. You become distracted and lose focus when you do this.
- An exercise in discipline. Concentrating on a setup creates discipline. You have to be sure when setting up your setup form and systematize it to a certain extent. To do this, you create a trading plan with screenshots of a "perfect" example of your chosen setup and the way you trade it: stop loss placement, exit strategy, risk reward, position size, money management, psychology – these are the main topics that should be dealt with in each trading plan.
- Specialists earn the most money. If you become a "pin bar specialist" or a "fakey specialist" or any setup you like best, choose one, master it, rinse it out and repeat.
Here are some articles to help you learn more and better understand today's lesson:
Believe in your edge
Master One Trade Setup at once
Daily chart end of day routine
If you want to reverse your trade or just want to start on the right path, you really need to narrow your focus. Most of the time, traders are only flooded with the large amount of trade information whirling around on the Internet. I tell you from over 16 years of trading experience, most of it is just garbage and will hurt you if you allow it.
You can really choose one of two ways: get serious now and start mastering one entry price signal until you are literally a Bruce Lee owner of that signal, or keep doing what you are doing. But if what you've done doesn't work, I strongly recommend that you try what I've described in today's lesson, since that's basically what I do, and that's what I know it is for me worked and worked for many of my students.
I suggest you choose the pricing action pattern that you like the most, that you understand best, study, and commit to mastering it until you dream of it in your sleep. If you need further help, you can read my trading price for more detailed examples and explanations. Whatever you do, if you are serious about trading, I strongly recommend that you follow what I have outlined here today to give your trading routine a certain structure and consistency.
What do you think about this lesson? Please let us know in the comments below!
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About Nial Fuller
Nial Fuller is a professional trader and author who is considered the "authority" to trade price promotions. It has a monthly readership of more than 250,000 dealers and has been teaching more than 20,000 students since 2008. In 2016, Nial won the Million Dollar Trader Competition. Checkout Nial's professional trading course here.