I really need to get my head back in the game. I tried to learn the ICT concepts that are all over YouTube. The concept of Order Blocks and Fair Value Gaps really make a lot of sense. But, when it comes down to it, there’s a lot of ambiguity!
The bottom line is I’ve blown a lot of accounts trying to stick with trades that I normally would have exited with my trend following process. Not that trend following is the cat’s meow, either. It is what seems to work best for me.
So, I’ll continue to try to improve with ICT, but I’m going to revert back to trend following as my trading basis.
My biggest challenge seems to be reverting to “hopeful” trading when a trade goes in the wrong direction. I have to get it through my head that hanging onto a trade with the hope it will recover is simply silly. When it comes right down to it, the only think hanging on can do is improve (or reduce) my win loss ratio. That doesn’t put money in the bank!
So take the loss and look for the next trade.
Another challenge of mine is focussing on reversals. Yes, it’s nice when I’m right, but more often than not, I’m wrong and there goes another loss. All I have to do is go with the trend. If it reverses, and I’m wrong, then take the loss and keep trading. If, on the other hand, it continues, then I’ll have a winner. Why can’t I get that through my head? Perhaps it’s because I see price action showing me a potential for reversal so I jump on it rather than waiting for confirmation or rejection?