Welcome to the daily DAX commentary where we share with members our unique take on Price Action as the session unfolds. We comment on trade setups that conform to our Trading Edge and how we use the hybrid Blackbox Trade Controller for MT4.
Use the comments section below to post questions and read what others are saying.
Remember to:
- Follow your Trading Plan.
- Practice Visualization Techniques.
- Review and journal your trades at the end of each session.
- And above all else Be The Bear….
Below are my analysis and thoughts on my trading this morning.
The two losing sell MABs above did have decent structure BUT not decent context.
The M5 MAB was better value than the M1 MAB but price was still coming up off the Low AND a major EQZ level at 12577, this could be likened to when price is coming up after testing the bottom of a range.
The M5 sell MAB is often part of a buy REVFIB setup but not this time so I’m ok with that trade. We only need 40% of these to work out for them to be worth taking.
Below is what FOMO looks like. I felt the buy REVFIB setup at Yes Low was excellent and mentally overinvested it in so when it failed and then it looked like a triple-bottom was in play I re-entered.
When that failed FOMO took over and I chased price and entered a sell NOT based on my rules. I nearly got away with it for 2R but price reversed so I closed out for +0.93R and walked away.
FOMO is a VERY powerful emotion and therefore can sabotage our trading.
So, had I been managing my emotions and reading the context I’d have:
- Taken a 1R loser on the first buy REVFIB setup and been free to maybe take one of the micro sells on the way down to 12577 instead of taking the M1 sell MAB when price was reversing of the Low.
- Probably still taken the M5 sell MAB and ideally followed it with a buy REVFIB.
As I had a poor nights sleep due to another change in sleeping arrangements I’ll not beat myself up too much 🙂
The “Trading with the Energy” page describes the range rules that would have hopefully kept me out of at least the M1 sell MAB at 12577.
Both Joel and I took the same losing MABs and Joel alluded to a great point in the comments section.
So long as we follow our process and take setups that conform to our rules that’s ok, losers are part of the game.
I marvel at how I will miss out on a winner by being too fussy – like yesterday afternoon – then take trades when FOMO kicks in.
We must master our emotions!!
