I often have mentioned that when you are aiming to master your mental game it is important to support your ability to focus on “what matters most” in the trade. As we look at this statement, let’s consider the components of “what matters most” in the trade. Of course, high up on this list would be your ability to identify the order flow. The imbalance in the order flow is what creates the price action and it is imperative for you to be able to determine when the order flow is going to change or reverse as in a pull-back or a retracement. The timing of your entry and the target(s) that you choose will hinge upon your accuracy in correctly tracking the order flow. Careful tracking of the order flow offers the ability to wait for the right moment as the order flow is indicating that a reversal is setting up. Your mental game must be in order to become aware of mechanical data (the mechanics of the trade); that is, the data of the market, technical analysis and price action and getting the knowledge about supply/demand levels.
Next on the list would be your plan for the trade that has been suggested by the set-up that the order flow reflects. Some traders choose to have a plan in their heads; I firmly suggest that you actually write your plan out in order to… Continue Reading
