1) Consider the trend, and whether the trend is likely to change or not.
If it’s unknown, stay out.
2) Lower time frames only come into play during the execution.
Retail traders lose money because they don’t have a plan, or if they have a plan, they don’t execute it.
Common mistakes retail traders make:
Execute your money management and method rules.
Retail traders focus on the method. They don’t have a realistic concept of how hard trading is.
How retail traders should overcome a losing streak or blown account:
1) step back, take a break, and recover.
2) sit down, and evaluate what caused the blow up.
3)
Sophisticated solution:
Exit more quickly. Soft stops.
If the market doesn’t move within 3 bars or within a certain shape, immediately exit.
Reduce position sizing until getting over the hump.
The healing code Dr. Alexander Lloyd
Steidlmayer: Trading with Market Profile
Wounded Child psychology