Trading is mostly a game of patience. You need to learn to be a good hunter. A hunter that stays behind the bush and shoots at the perfect time is a good hunter. If you just sit there in plain sight and run after your prey, you are a lousy hunter… Don’t chase the market, plan your trades, be patient and let it come to you. When the market enters your territory, shoot! No remorse, just execute according to the plan and manage your risk.

EURUSD short at 1.2928

See this trade I made today? While price was going up, I had the nerve to sell when the moment was right. I’ve been stalking this trade since London open today. When price hit my red thick level, when it entered my territory, I shot it. This might be hard from a psychological point of view, since you have to go against the market. While everybody is buying, you have to be tough enough to sell to the novice buyers. When you have obvious levels of support/resistance, like you see in that chart, you have a high probability setup in front of you. Of course, you need to pay attention to momentum. In this case, although momentum was very bullish and price was moving rapidly into my level, I still shorted the market, since today’s movement was overextended, as EUR/USD has an average daily range of about 160 pips. Since we moved 200 pips up, chances were getting very low that price would continue further. These are the clues you need to look for. Usually, you want more than one reason for entering a trade. Support and resistance should ALWAYS be one of the reasons.