Do The Best Trades Work Right Away?
Exploring the Dynamics of Successful Trades
Home » Do The Best Trades Work Right Away?
Best Trades Patterns
We’ve all heard that the best trades should work right away, but is it true?
When you take a trade it’s always nice to have it rip off in your direction but is it essential? Is that the sign of a good trade?
My view is it very much depends on the strategy you are deploying.
Let’s quickly explore…
Trading a momentum ignition
You want to find that point where the tape speeds up back in the trade direction, you hop onboard and it doesn’t look back. By the nature of the trade, it’s the momentum that makes it a good play.
Trading mean reversion
You might be selling into strength in anticipation of a turn, or in a trade that takes some time to pivot the supply-demand imbalance. It’s not an instant shift like some setups and expecting it to go instantly seems impatient.
Like a lot of trading, I think this is very personal. But it’s worth digging into.
Today, consider analysing your best trades to see if there’s any pattern to price going in your favour immediately. If there is, then you can consider leveraging the pattern more.
A trade working right away can be a good sign, but just because it doesn’t, does that make it a bad play?
I’m curious to hear what you think.
Lance Breitstein
Check out this great video with Lance Breitstein, a top prop trader who claims ALL the best trades must work right away.