High probability trading focuses on your trade set-up as it is forming, not after it has been completed.  The former is based on trust and the latter on pure emotion as the “missed the train” mentality takes hold.  The former will make you money and build confidence while the latter will attract all types of debilitative actions.

 Let’s look at two recent charts of JOYG.  The first is the DAILY and the second is the CROSSHAIRS TRADER intraday chart.

DAILY CHART: JOYG has tried to break out over the 200 TANKS three times in the last several days but finds trend line support with the rising 21 TANKS. Then JOYG breaks out on 5/26.

How do you trust a continued move higher?  There are several factors in play here but let’s stay focused on the charts and, in this case, my intraday deployment chart.  This chart gives me the confidence I need to enter the trade, trusting that the break out will be successful and I will make a quick profit.

THE INTRADAY CHART:  Here my CROSSHAIRS parameters have set up due to:

1) CROSSHAIRS indicator lines crossing

2) the CROSSHAIRS candle breaking through the DAILY 200 TANKS

3) a trend line break from a recent pullback

4) the BATTLEFIELD TERRAIN and MAB for the major market indices

5) earnings are June 3 and can act as a catalyst for stock movement

With my INTELLIGENCE REPORT in hand and my COORDINATED ATTACK mentality I make the trade.  Since I trade options I am out no later than the end of the next day with a quick profit.  There were two other opportunities based on price action over the next several days but they did not meet my strict parameters.

The trader who lacks confidence and does not trust his set-up (if he has one) will make the error of jumping into a trade after seeing its big move, such as in the case of JOYG after its run from 31 to 41 and then is left wondering if the trade was made in haste.

JOYG could indeed move much higher from here but why risk it now after such a big move? Why trade on SATURDAY AND SUNDAY?  Why not wait for a possible pullback and enter again IF the trade sets up? 

Do not let the emotions of missing the last move cloud the better judgment of waiting for the next one.  You just might miss it again!

Post from: The CrossHairs Trader

HIGH PROBABILITY TRADING IN THE CROSSHAIRS

Related posts:

1. HIGH PROBABILITY TRADES USING THE CROSSHAIRS TRADER INTELLIGENCE REPORT
2. UNDERSTANDING STOCK MARKET MOVING AVERAGES WITH THE CROSSHAIRS TRADER and FORREST GUMP
3. CAN MISSING A STOCK TRADE BUILD CONFIDENCE?

Last 5 posts by David Blair

• THE THINKING TRADER 11/20/2009 - November 19th, 2009
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• THE ART OF TRADING VERSUS THE ART OF DECEPTION - November 10th, 2009