Play the £100k in 30 days game…
What's your approach?
10k to 100k
Let’s play a game (said in the style of Jigsaw from Saw…)
Solve this problem:
You have a £10k account and you need to turn it into £100k from trading in 30 days.
- How would you do it?
- What trades would you take?
- How much risk would you deploy?
- How would you stop yourself from snatching at profits?
- Would you trade big size infrequently or small size frequently?
- What strategies and patterns would you trade?
It might seem like an odd exercise, but forcing yourself to solve an ‘unreasonable’ challenge is the key to unlocking your brain power.
The answers you come up with might just help your trading…
Listen to my latest podcast episode for more details and try it out.
An Immediate reversal
This tells us sellers are lying in wait… They see a short-term uptick in price as an opportunity to sell at a higher price.
Just imagine if you’re trying to sell a bunch of contracts for a customer, you’ve been working offers and hitting bids and then all of a sudden a price spike.
You’d be on it like a shot.
The ignition bar woke the bears…
A Continuation
In this situation, sellers don’t see the price premium as an opportunity to become more aggressive. They aren’t really that keen.
The demand is outstripping supply, bulls are buying and lifting offers. The thesis is that will continue…
Market Context
This is the most important clue of all. The ignition bar can’t be studied on its own. We need to look at the bigger picture.
- Has price broken a key level?
- What time of day is it?
- What’s the instrument?
- What’s the current sentiment?
- What does the daily chart look like?
(I’ll be here all day if I cover all of them, but you get the idea…)
Then we look at the response (that second candle) and then we come up with a potential trade idea.
Ignition bar – Response – Overall context
Worth looking into…