Trading successfully doesn’t have to be complicated and when working with our traders, we saw that a few little tweaks often can make a big impact.
In today’s article, I am sharing a very simple hack that has completely turned my trading around. It will help you deal with your emotions in trading better and provide a much more stress-free trading environment. For me personally, it’s also the ‘hack’ that allows me to travel the world and spend only 30minutes – 60 minutes each day looking at charts.
The problems traders have
- Jumping into trades too early
- Knee-jerk reactions when you suddenly see a large candle into your direction
- Getting faked out / running into a fake breakout
- Messing and fiddling with trades
I am sure that it will sound familiar and that if you could overcome those problems, your trading account would look very differently. And you could also eliminate a lot of stress and worries from your trading.
Candle close decisions
Traders are often disappointed when they hear my tip but once they try it, they will never go back.
Many problems traders have can be eliminated once a trader stops making mid-candle decisions. This means that you only made trade decisions (entering trades, closing trades, moving stops etc.) once a candle is fully closed. If you are on the 1H timeframe, you only look at charts once an hour when the candle closes; when you are on the 4H, you only look at charts once every 4H when the candle closes. And so on…
Does it really work?
I admit, it does sound very simple and many traders will now scream that this is total and utter BS. But if you are one of them, just look at your own performance and let me know how your current approach is working!?
The candle-close technique is no secret and it’s not suddenly going to turn you into a profitable trader but I guarantee that you will quickly see the positive impacts on your trading.
Many traders feel much better once they stay away from randomly jumping in and out of trades, getting caught in squeezes and running into fake breakouts.
And also once you are in a trade, you are not glued to your screen and follow every tick. Once in a trade, you set stops and targets and then close the trading platform. You only come back once the candles close or when a price alert goes off. Many traders mess up good trades because they get scared by every tick against them. The candle close technique will also help you deal with this much better.
With everything, this approach also has both, pros and cons:
|Pros of candle-close decisions||Cons|
|Avoid fake breakouts||Missing some trades|
|Stress-free trading||React too late to a turnaround|
|No random jumping in and out of trades|
|Less screen time needed|
|Avoid wrong signals|
|Stay in trends longer|
You can see, the pros easily outweigh the cons and that’s what trading is all about. Find enough of those little hacks that then eventually add up and help you create a powerful trading strategy.
Remember my 20 SMA rule? It’s also one of those simple things that will have a big impact on your trading.
In our pro area, you will learn exactly how to trade our trading strategy in combination with the candle close rule and our exact setups step by step.
My recent office when traveling in Thailand. I only get the Macbook out every 4hours to check my current trades and potential setups.