Thursday 1 November 2012

Trading - Your Inner Dialogue

Read some good tweets from @trader_dante today regarding the thought processes of a trader which I thought would be good to record for the future.  He was talking about the inner (and outer) dialogue he has with himself when considering a trade.

"One trader sees a breakout and understands that is technically "bullish" and takes the trade. Another trader is asking questions...


  1. How far has price already travelled today? 
  2. How does that compare to an average day? 
  3. Why might today be any different?
  4. Has price broken enough to take the buy stops? 
  5. Are those buy stops shorts puking or longs initiating?
  6. Have retest traders using buy limits had a chance to get onboard on any timeframe? 
  7. Where will shorts puke? 
  8. Where will longs target?
  9. What's the bigger picture telling us? 
  10. Is price behaviour confirming my opinion which is based on the net result of my understanding?
So I take entries with more confidence when my understanding is deemed to be right by the price action."



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