Today was certainly one of those days where using another trading technique would have paid off pretty well. Don't get me wrong, we still had a good day and were able to catch a few trades, but there were an abundance of what we call Trend Continuation (TCT) or Fibonacci Failure (FF) setups today on the lower timeframes. For those of you who are not in the Live Room, I mainly use a counter-trend style when trading. This basically means that I buy the market while it's being sold off and sell the market while it's being bought. The TCT style of trade is a trend following trade where you're buying the market as it rises and selling the market as it declines. With that being said, when doing so we are still looking for pullbacks in price action and attempting to get into the market at the best possible point. When the market is trending TCT traders benefit and when the market is not, the counter trend traders usually make off good. So the obvious answer is why not just do both? Easier said than done.
The problem that comes when attempting to use both techniques happens in that thing that rests between our ears. The thing is, that whenever our trend following side gets a signal to go one way, our counter trend side is getting a signal in the exact opposite direction. I went over this during today's session, but those contradicting signals can lead an unprepared and undisciplined trader down a dark, dark road. Therefore my best advice is to chose a single way of trading and be your best at the one way. With that being said, one you do become a confident and disciplined trader, there is a way where you can get the best of both worlds. I won't go into details about how to do so but it involves strict rules along with a strong psyche that will allow you to sit back and watch certain setups occur without feeling the need to get involved.
The problem that comes when attempting to use both techniques happens in that thing that rests between our ears. The thing is, that whenever our trend following side gets a signal to go one way, our counter trend side is getting a signal in the exact opposite direction. I went over this during today's session, but those contradicting signals can lead an unprepared and undisciplined trader down a dark, dark road. Therefore my best advice is to chose a single way of trading and be your best at the one way. With that being said, one you do become a confident and disciplined trader, there is a way where you can get the best of both worlds. I won't go into details about how to do so but it involves strict rules along with a strong psyche that will allow you to sit back and watch certain setups occur without feeling the need to get involved.
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