Missed a trade? Try this

Here’s a good process for refocusing on the next trade.

Refocusing on the Next Trade

Missing a big move in ‘your’ market can be annoying.

It shouldn’t be, but sometimes bad luck, bad prep, or the simple ebb and flow of the markets can mean you miss a move you’ve been waiting for.

And we are human – sometimes that frustrates us, weirdly!

So if you miss a move. Here’s a good process for refocusing on the next trade.

  1. Acknowledge that the trade idea has gone.
  2. Pat yourself on the back for recognising the move even though you missed it.
  3. Allocate time after the close to debrief on the reasons why you missed it.
  4. Now think: What’s the next good trade idea that can come from this? (Play chess)

Let’s look at an example:

Assume you missed an opening drive.

For whatever reason you hesitated taking that 5 min ORB and now you are watching the market drive on without you.

It’s easy to slip into frustration and revenge trading.

But if you can pause and stop for just a moment…

Do steps 1 – 3 first to appreciate the miss, accept it, and allocate time to debrief later.

Now onto step 4:

What would be a good trade idea after this strength?

Let’s review:

Ok, so the drive was strong, What’s next?

How about good places to get long again…

  • A pullback to the VWAP?
  • Bull flag?
  • 50% pullback?

Ok, so you decide you’d be interested in those.

What trigger do you need to see?

  • Ignition bar?
  • Wick?
  • Break of a 5-minute candle high?

Where would be your stop?

  • Under the swing low


  • New highs – half at high and trail half under the 5-minute candle low.


Now you have three or four fresh structured trade ideas.

What happens next?

It almost doesn’t matter… you’ve neutralised the danger of chasing and are in sit-and-wait mode.

You know precisely what you will take and when. All you need to do is observe.

Look how much of a powerful position you are in now. The ‘missed’ trade is forgotten, no emotional residue, just focused on the process.

How does it play out in our little example?

Price pulls back to VWAP

Giving you an entry on break of highs with a stop under the low

Target = new highs for half.

Trail half with a stop under the last 5-minute candle low once it breaks the highs.



Next…the 50% pullback trade idea activates.

You get the idea…I don’t need to go through the whole thing.

By accepting that trade has gone and thinking about the trades that could set up next, you’re putting yourself in a position of power.

In this example, those two trades were worth more than the initial drive anyway!

The point is not this specific recent example, but more to illustrate how important it is to not let your emotions get the better of you and stay focused on the process.

You don’t want to be the trader who misses the move and then watches it tick up until he can’t take it anymore and buys at the high…

We’re all better than that.

Follow the steps, regroup, and keep playing chess not checkers…