Don't Get Chopped

My post content

When the range gets tough, the tough get going. Is that how that saying goes? Inspired by yesterday's price action, let's talk about what to do when you miss the move and then the market gods give you hot garbage. It's not fun, it can really test your discipline to the max, and worst of all it can result in you getting chopped up and ending the day super red.

The first thing I do when I miss the big move of the day is I evaluate why I missed it? Did it occur at a time I'm not good at trading so I have a rule to avoid trading then (here's looking at you, first 15 minutes of the day and most of the afternoon)? Did it not give a pullback into an area that I liked? Was I over-biased and didn't believe in the continuation? If I evaluate and any of these are the reasons, I give myself some grace because those are all good trading reasons to miss out. If I missed out because I just didn't press the buttons, then a lot of that grace goes out the window and it's time to sit and think about what I could have done differently.

If you end up in a situation like Monday where the range after the move makes you want to cry but you still think you can find a trade, first you have to be able to practice extreme patience and look for your setup. You also need to know what kind of trader you are: are you a dip buyer, are you a range trader, are you a trend joiner, are you a breakout buyer, or are you a bottom/top finder? Play to your strengths. If we get stuck in a tight range, if you feel comfortable just take the small trades in the range. Long the bottom or short the top. Exit when it returns to the bottom or top and keep your stops tight. If you aren't comfortable in the range, wait for the breakout and take the confirmation re-test. If none of those work for you, throw your mouse out the window and sit there and watch and learn, or get up and leave. Taking no position is always a position, and it's a position that preserves your capital. If you really want to be a degen, then fire up the sim/paper account and go wild. Just don't throw your hard-earned money away being an idiot.

Here are today's NQ levels:

Current Price: 15140

Upside Targets: 15170, 15215, 15253, 15290

Downside Targets: 15125, 15074, 15046, 14996

Stretch Targets: 15338, 14955