Welcome to part 11 in the Price Action Traders Mindset series. In this part we move onto something a little more new and that is the concept of learning and using set and forget. This is a concept that is often left unheard of, yet is a way in which a trader can move past many emotional obstacles when trading the higher time frames. ( above daily charts )
Now you are probably wondering, what is Set and Forget, well rightfully so, in basic terms it is the concept of setting up a trade on the higher time frames such as the daily or weekly chart and then going and doing something else.
In Summary it can be Described in this Way:
Doing the analysis, looking at potential risk ( where to place stop loss ), looking at the potential reward then setting it up and then after, walking away or closing your MT4. You see many traders assume or fall into the habit of believing that trading needs to be watched or something similar.
The truth is that unless you are a day trader then watching the charts can literally hinder your performance. The reason being is it creates an emotional battlefield for most traders. That is where sayings such as “sitting on your hands” or “tied down to a position” come from as they represent to emotional force causing the trader to force themselves to stick to there trading plan while watching the charts. Does this sound familiar?
That is where setting and forgetting comes in and has its advantage, you see it literally takes if trading the daily chart around 15 to 20 minutes to go through around 30 pairs. If it takes you a little longer do not stress, with practice it becomes quicker and quicker. This can be done after New York close candles and once done you either have one of two things, you either have a trading opportunity or you do not. If you do, you can then just simply place the trade, place the stop loss and targets and not come back to check until the next daily close time when checking for new signals.
– Set and Forget Until Next Assessment, when Daily Charts that is the Next Day New York Close candle, If Weekly, that is the next week market open New York close candle..
By doing this activity, you give yourself a certain type of edge, first edge is that you have taken away emotional control, the need or feeling for many traders to close there trade after opening and secondly you are following your business plan. Nearly all those that watch charts continuously if trading the higher time frames have this fault, the reason being is they are seeing trading like a job, when in reality you should see it like an investment instead.
If you are following a good strategy ( such as The Engulfing Trader ) and your trading plan, then that is all you need to know, you have done your analysis, you have done your work, now it is time to let it develop.
You see watching the trade only causes frustration, fear, anxiety and conflicts in your trading plan ( when not day trading ) and it is not a needed reaction. Instead you can disassociate yourself from that emotion completely by following your plan and keeping it simple.
Overall, it comes down to this, controlling emotions, controlling fear and the Set and Forget concept can help remove you from that association. Not only that it gives you another benefit when trading the higher time frames and that is Time, another valuable currency.