Not every chart needs a trade. Sometimes the job is simply to identify where the risk/reward starts becoming interesting. While screening for potential shorting opportunities, I came across this setup. The idea was to combine market structure + liquidity + imbalance + trend rather than short simply because price was falling. 🔍 What caught my attention? 1️⃣ Bearish structure Price had already experienced a strong decline and was trading below a downward-sloping moving average. That suggested that the broader momentum was still favouring sellers. 2️⃣ Equal High = liquidity above The Equal High marked on the chart is an area I would watch closely. Rather than assuming resistance will hold, I look at clustered highs as a potential area of buy-side liquidity. A move toward or through that area can become important when assessing a potential reversal. 3️⃣ IFVG — potential resistance The purple Inverse Fair Value Gap (IFVG) becomes the key area I'm watching. If price retraces into this z...
About Me:
I begun my trading journey at a young age & have experienced the highs and lows that come with the desire for quick profits.
However, those initial losses served as valuable lessons that transformed my approach to trading.
As I begun to understand & accept that success in trading is not about relying on luck but about taking charge and focusing on factors within my control in the market.
In this blog, i share the trading mantras & principles that have shaped my trading strategy.
Focus on Factors within Your Control:
Trading is not a game of chance; it's a strategic process. Instead of relying on luck, you need to focus on risk management, decision-making, and implementing a well-thought-out strategy.
By taking charge of these elements, any trader can enhance their chances of long-term success.
Emphasize Risk Management:
Minimizing drawdowns and effectively managing risk are paramount for sustained profitability.
Trading is all about understanding the reward-risk ratio & position sizing before entering trades.
Rather than attempting to predict market movements with precision, I personally believe traders should focus on managing risk effectively.
Position sizing plays a crucial role in the journey of a successful trader.Knowing when to bet big and knowing when to stay on the sidelines is crucial for the success of a trader.
In trading is great to have strong opinions as long as they are weakly held.
Practice Patience and Discipline:
Impulsivity can be a trader's worst enemy.
I learned the value of patience and discipline through my trading journey. Avoid the temptation of impulsive trades and wait for favorable trading opportunities.
The key is to have a trading plan & to execute your plan.
Following a well-defined trading plan & exercising discipline, traders can make more informed decisions, avoid emotional pitfalls, and increase their probability of success.
Understand the Market Narrative:
It is crucial to stay informed about economic indicators, news, and market trends.
Conducting extensive research & understanding the underlying market sentiment is essential to trade selection,execution & management. It also enables you to make more strategic decisions and increase your chances of profitability.
Aim for Consistent Results, not Quick Profits:
Trading should be approached with a long-term perspective. The key is to shift your mindset from chasing quick profits to focusing on consistent results.
Develop a well-thought-out strategy that aims for sustainable profitability over time. Following this approach, you can navigate the markets with confidence, improve your decision-making, and increase your chances of profitability.
Trading is a journey of continuous learning, growth, and adaptation. Risk management, patience, discipline, market understanding, and a strategic approach are crucial to achieve your financial goals as a trader.
⚠️ Disclaimer
Information shared is for educational purposes only kindly do your own due diligence before investing in the stock market.