Trade Recap (Trading the Market Maker Buy Model)

Summary

In this trading recap, the trader shares insights from a successful day of trading. After a careful analysis of market conditions, they decide to take a long position despite some initial uncertainty due to market signals. The trader executes their trade with precision, partially taking profits at key levels for peace of mind, ensuring they don’t risk losing gains. Reflecting on the decision-making process, they emphasize the importance of patience, discipline, and clarity in trading. They express pride in their execution and remain focused on the process, illustrating the importance of adapting to market conditions with confidence.

Takeaways

• 😀 The trader took one trade on the day, hitting TP1 and TP2 before being stopped at break-even for the final contracts.
• 😀 The trader was proud of their execution and decision-making during the trade.
• 😀 The initial market outlook was bearish, as the trader saw a bearish S&T pattern inside a daily imbalance.
• 😀 Despite the bearish outlook, the price closed above a key high before 9:30, signaling a possible bullish move.
• 😀 The trader avoided taking a three-minute long position due to the SMT risk and the presence of equal lows, preferring to wait for clearer setups.
• 😀 The trader waited for confirmation from higher timeframes, like the five-minute and 15-minute charts, before executing the trade.
• 😀 The trader went long after the price closed above a breaker, confirming the bullish signal despite the earlier SMT failure.
• 😀 After reaching TP1, the trader partially closed some contracts for risk management, keeping peace of mind and maintaining control of the trade.
• 😀 The trader asked themselves how they would feel if they didn’t take partial profits near key resistance levels, ultimately choosing to take off partials for peace of mind.
• 😀 The trader focused on staying process-driven, avoiding emotional decision-making and aligning trades with clear setups, even if it meant missing opportunities.
• 😀 In the end, the trader was happy with their decision to take partial profits, as it provided peace of mind and ensured a positive result, hitting a 1 to 1.5 R reward.
• 😀 The trader emphasized the importance of clarity, alignment with their strategy, and staying patient for the right setups, rather than forcing trades.

Q & A

What is the main focus of the trade recap in the script?

The main focus of the trade recap is a detailed analysis of a single trade taken during the day, focusing on the decision-making process, trade execution, and risk management. The trader reflects on the technical analysis, trade entries, exits, and how they managed the trade emotionally and strategically.

Why was the trader initially bearish before the trade setup?

The trader was initially bearish because there was an SMT (Smart Money Trap) inside a daily imbalance, indicating a potential reversal in the market. Additionally, the trader noticed that NQ tapped into a daily level, but ES did not, reinforcing a bearish view.

What caused the trader to shift from a bearish to a bullish bias?

The shift to a bullish bias occurred when the price closed above a key high, despite the initial bearish setup. This close above the high indicated that the market might continue higher, leading the trader to re-evaluate the setup and become more bullish.

Why did the trader avoid taking a long trade on the three-minute chart initially?

The trader avoided taking the long trade on the three-minute chart because of the SMT, which created uncertainty. The trader wanted to avoid taking a risky trade without clear alignment, preferring precision over taking a trade that might be unclear due to the potential for market manipulation.

What was the key reason for the trader to take a long trade after waiting for confirmation?

The trader took the long trade after waiting for confirmation because the price closed above the breaker, which indicated that the SMT had failed. This confirmed the bullish outlook and prompted the trader to enter the trade.

Why did the trader decide to take partial profits during the trade?

The trader decided to take partial profits to manage risk and ensure peace of mind. The trader was uncertain about the market's next move, especially near a key level, and taking partial profits helped alleviate the discomfort of uncertainty.

How did the trader feel about holding the position near the equal highs?

The trader felt uncomfortable holding the position near the equal highs, as this could signal a potential rejection or reversal. To manage this discomfort, the trader took partial profits to mitigate risk while still allowing for a potential move higher.

What was the significance of the SMT at the equal highs?

The SMT at the equal highs was a potential indication of a market trap, where the price might reverse or stall. The trader was cautious about this setup and made the decision to take partial profits to avoid getting caught in a possible reversal.

How did the trader handle the break-even stop loss?

The trader was comfortable with the break-even stop loss after taking partial profits. The trader believed that if the market moved higher, the position could still be profitable, but if the market reversed, they would exit without a loss.

What was the final takeaway for the trader regarding the trade?

The trader was satisfied with the execution and decision-making throughout the trade. They were particularly pleased with how they managed their risk by partialing profits and adjusting the position for peace of mind. The trader felt that they stuck to their process, stayed focused, and made rational decisions without letting emotions dictate their actions.