Trading Price Action - Mistake Listing

Flashcard set of repeated mistakes to review before trading each sessionn

5 Min Chart

Open - Too many entries in the first six bars.

5 Min Chart

Entering on a limit order without there being a strong breakout first.

5 Min Chart

Taking a breakout trade before breakout confirms

Out of which range?

Two closes?

5 Min Chart

Stop too wide

Taking entries where the stop is more than 20 points away.

5 Min Chart

Always in

When the market switches to always-in, don’t exit on the first pullback.

5 Min Chart

Be careful entering on the third or fourth time in the one swing

That means it's a late leg.

5 Min Chart

Scaling into a late leg

Better to exit and wait for a strong breakout.

5 Min Chart

If a reasonable trade fails, it sets up further trades:

away from it,

back towards it,

away from it again.

5 Min Chart

Exiting on the first reversal

Better to exit on the second reversal.

5 Min Chart

Not willing to switch sides after taking two losses in a row.

5 Min Chart

Trading during breakout mode.

5 Min Chart

Must exit on a strong breakout and follow-through against

• shaved bars

• gaps

5 Min Chart

Entering intra-bar using a market order

Use a limit order at a specific price

5 Min Chart

Don’t reverse - get back to flat first

If the market is reversing, the most likely outcome is a spike and channel.

Expect a pullback

5 Min Chart

50% pullback,

Better if you miss the first one - chasing.

If no one has to chase, why rush?

5 Min Chart

Exit on disappointment

If a new entry sets up on the correct side of the moving average, you must be able to get back in.

5 Min Chart

Surprise entry bar

If your entry bar was surprisingly strong against you, better to exit and wait to get back in sync.

5 Min Chart

1st Reversal

The first reversal bar is a take-profit signal, not a place to reverse.

5 Min Chart

Scalping

Always - in

Scalp in Always in direction

Counter-trend

Don’t trade counter-trend unless:

• 2 reversal signal bars have triggered

• Gaps have closed