Next Level Trading

THE NEXT CHALLENGE - Once many aspiring traders come to terms with the fact that they can't be trading all the time and that they must deny this impulse, they graduate to struggling with the next great challenge in trading. You see, there's always a challenge out there and the goal is to keep moving on to that next challenge so that you'll continue to grow and better yourself in life. And so, that next challenge in trading is a tough one but an easy one to recognize, which means if you are fully in the moment and honest about it, you can easily work past it and get yourself thinking about that next challenge on the rung.

cartoon sep 10

DON'T FORCE IT - So what's the challenge that I'm talking about? This challenge is about seeing a trade coming your way but making sure not to force it when it isn't there. Level one trading is not even really giving anything much thought and just jumping in whenever and wherever. Level one is where you scan the markets looking to take a trade that you're already determined to put on, even if nothing is there. But this next level is when you're no longer looking to put a trade on and are now starting to wait to see what comes your way. But when you're on level two, there's a mistake that's made where a trader will say it's pretty close to where they want it to be and will jump in without it actually getting to where it needs to be.

A trader's number one priority is to make sure his head is in the right place.

EXAMPLE - As an example, I wanted to buy GBPUSD on a dip to 1.3000 or even just below 1.3000. But the market opened up on Monday and rallied quickly back above 1.3100. And so, it got close, but it never got to where I wanted it to get to and as a result, I did nothing and remained on the sidelines. When you apply this level of restraint, there are going to be times when making the decision to jump in prematurely would have paid off handsomely. But over time, this isn't the case and over time, making a habit of jumping in when it isn't there for you will result in your downfall. And by the you know how many times I held off and ultimately, the market ended up getting to my level when initially it didn't look like it would? Many many many times. So maybe GBPUSD still sets up.

JEDI TRADING - Now I will say that as you get to the next level beyond and master this discipline of not forcing the trade, you may get to a point where you actually will be able to make the decision to initiate a position that is almost but not quite there. In this case, you are already in the right spot and so, you are effectively able to recognize where there are exceptions and where you can deviate a little from taking such a rigid approach, as I've highlighted above. But again, this is next level Jedi trading stuff and not the type of stuff you should be doing when you're just trying to figure it all out. If you're struggling, your primary responsibility is to be as careful as you can be to take positions that will leave you feeling like you took a trade, with everything lining up the way it should have.

It Hasn't Even Started

I'm looking for quite a bit of USD weakness in the months ahead and right now...


JKonFX Journal Performance 2016


+25.46% (2015) and +8.94% (2014)

Learn how to trade the Forex market.

Take a Tour

SPX500, Yen and Euro

Here's a look at the downside we could see in US equities and how this, along...