Traders, Are You Rushing Trades?
Why Waiting Beats Jumping the Gun
Picture this…
You’re stalking a long.
Classic double-bottom setup.
Rotational market.
You’re looking to bid near the prior low, aiming for a mean-reversion A-to-B move back up to prior resistance.
I love these trades. Maybe you do too.
But here comes the decision:
Where exactly should you get long?
Say you’re watching Crude… and you spot something like this:
The Dilemma
$61 is the key support level.
Price rotated up earlier in the day, eased back, tagged $61 again, then printed a nice green candle.
Technically?
It looks good.
Double bottom
Whole number support
Clear target
Reversal bar off the level
Tempting, right?
But hold on there Mr Eager…
What’s the trader’s job?
Make the most money, with the least risk.
This setup might work.
But what’s the risk?
Let’s workshop it.
You’d probably place your stop just below the day’s low.
Not unreasonable… if it’s a true ignition move, you’ll be fine.
Or do you go wider to allow for a little sniff under those lows once more to ping a few stops?
And that’s the issue…
You’re either: Giving it more room. Hurting your RvR
Using a tight stop. Hoping there’s not a final flush before she goes.
What’s the Better Move?
Wait.
Wait for: A retest
A failed break
A liquidity trap
THEN the ignition bar
You’ve just engineered a much better trade.
- Higher RvR
- Lower stop-out probability (stops already pinged)
- Cleaner conviction
And here’s what’s usually missed:
If you do take the early entry and get stopped?
You’ll probably want back in.
“Ah man, it was still valid. It’s a stop hunt…. It just got me by a tick…”
So now you’re re-entering late.
Even if that trade then works… the profit on the sequence is shot because of the earlier loss…
What’s the Real Lesson?
This isn’t just about being “patient.” That’s level 1 stuff.
It’s about being okay with missing trades.
You will see trades go without you.
You will miss some entries by a tick.
And that’s the price you pay…
To only take the trades with superior structure, better risk, and cleaner logic.
Yes, it’s tough.
But mastering that discomfort?
That’s what separates the good from the great.
Be patient today. The best trades always stand out.