There it was, incredulously staring him in the face and he looked at it as though it were a flying pig. Ted couldn’t believe that the price action had kept going up and had triggered his stop, taking him out of the trade. It was on the YM E-mini and the long-term, intermediate and intraday trends were all down. He had placed a limit order at the lower line of the 60 minute supply zone that he had uncovered, and his stop was placed 2 points above the upper line of the zone. After realizing that he had just lost, he heard himself wonder out loud, “How did this happen? If only I hadn’t been distracted by the T.V., I could have seen that coming. This always happens to me!” Ted was searching desperately for someone or something to blame. He was in a “reactive” orientation, i.e., “The world is happening to me.”
Fred, who was in another city at that same time also playing the YM E-mini observed the same long-term, intermediate and intraday downward trends. His style of trading matched Ted’s in strategy and he perceived the supply zone which had formed and the price action which was retracing to that zone. Fred placed his stop 3 points above the upper line of the 60 minute zone, and got filled with a market order just as the price action pierced the lower line of the supply zone. He asked himself what he needed to do, if anything, to protect his trade, which is the way he consistently approached his trades. He too was stopped out soon after and again asked if there was anything he could have done to better execute this trade. Fred also had the thought: “It’s all up to me, I can’t rely on anyone else.” He was in a “creative” orientation, i.e., “I create my future.”
Joan took a deep breath and checked her emotional temperature before pulling the trigger on her trade. She determined that she was relaxed and poised to resonate with the reality of the charts and allow the market to… Continue Reading
