A Trader’s Mindset and a Live Trading Session
It feels a little strange to be nearing the end of this month-long project. For the last 25 days, I’ve been thinking out loud, and sharing this process with you has been incredibly insightful. It’s forced me to deconstruct my own trading habits—actions that had become so second nature they were almost subconscious. I was trained to see specific chart setups and simply react.
Breaking down that process over the past month wasn't just about sharing my methods with you; it actually helped me improve them. There’s a principle that observing something can change it, and knowing I had an audience made me pay closer attention. I found myself digging deeper into the details, wanting to make sure I pointed out every important nuance. My goal was to make my setups easy for you to reconstruct, turning them into a learned and repeatable behavior. This goes back to the three R's I believe are the foundation of any solid trading approach: Recognize, React, and Repeat. This journey has benefited me in ways I’m only now starting to fully appreciate. I’ve always said my students are my best teachers, and this experience proves it once again.
The Cornerstones of a Trading Philosophy
Now that you’ve followed along with me for a month, I want to leave you with three simple but powerful ideas to carry forward.
First, there is no one-size-fits-all trading strategy. What works for me might not work for you, and that’s perfectly fine. The goal is to find an approach that aligns with your personality and risk tolerance. This is a critical step if you're serious about turning into a real .
Second, no single method will ever catch all the market’s big moves. Don’t chase after a perfect system that promises to capture every breakout or swing. It doesn’t exist. Focus on consistency within your chosen strategy.
And finally, more is not better—better is better. Loading up your charts with more tools, indicators, and strategies won’t make you successful. It just creates noise. I’ve been fortunate to learn from some truly great traders, and I’ve spent more time studying their mindsets than their tools.
What Separates Successful Traders
If you ever get the chance to watch successful traders work, you’ll notice their approach is often remarkably straightforward. But don't mistake simple for simplistic. They know what works for them and they stick to it. They aren’t interested in putting down your strategy to make their own look superior; in fact, they rarely talk about their methods unless asked. They’re generally quiet and humble, not tempted by the latest trading fads.
I’ve seen the opposite behavior play out time and time again at trading expos. These events are a fantastic opportunity to meet and learn from experienced traders in a relaxed setting. But at every show, without fail, I see a few people approach a speaker afterward and launch into a detailed explanation of their own trading system.
Honestly, why would a successful trader who flew across the country to share their knowledge care about an attendee’s personal strategy? It’s a huge missed opportunity. When I get the chance to speak with a trader I admire, I keep my mouth shut and listen. I might ask a few targeted questions about their approach, but the focus is on learning from them. This desire to impress is a symptom of a larger problem. The best traders aren’t there to stroke their egos; they’re there to share what works. As students of the game, our job is to absorb that knowledge. This is the mindset needed to take a and work towards making it a .
Great traders are lifelong learners. Even after achieving success in the markets, they continue to learn about other subjects to keep their minds sharp. The world of online isn’t going anywhere; in fact, it’s growing. So if you feel like you’ve missed your chance, think again. I’m not talking about day trading, which can be far too restrictive. I’m talking about active trading and investing, where you follow a plan and trade what your charts tell you, regardless of the time frame. Turning into one of your is entirely possible with the right mindset.
A Look at Today's Market
With that, let’s get back to the charts. Here’s what I’m watching this morning.
The daily chart for the Aussie dollar is finally starting to flatten out. It never had a steep enough downward Wave to create the swing entry I was looking for, but it’s on my radar.
On the intraday charts, both the 30-minute and 60-minute Aussie charts have my attention. It’s just after 9:00 AM EST, and I have a decision to make. Both charts show similar breakdown setups through uptrend lines, but only the 60-minute chart has a negative MACD histogram reading. Because the MACD has been hovering right around the zero line, I’m marking this as an aggressive entry.
I’ll keep a tight leash on this trade, using only two lots. My short entry is at 0.7443, with a stop-loss just above the middle line of the Wave at 0.7455. My profit targets are set at Fibonacci support levels: 0.7429 and 0.7419.
Next up is the Canadian dollar. I’m seeing conflicting signals here—the 30-minute chart confirms a short, while the 60-minute chart shows a strong, positive MACD. In these situations, I always defer to the longer-term chart. The setup is still aggressive because the 9:00 AM candle broke both support and resistance lines. I’m entering a long trade at 1.1344 with an initial upside target of 1.1362.
I have to move quickly because we’re heading into a couple of "hot zones"—the Consumer Confidence number at 9:50 AM and the ISM number at 10:00 AM. It’s crucial to have my profit targets already placed as limit orders before the volatility hits, as these moves can happen and reverse in an instant.
The Swissy, euro, and pound are a pass for now. The yen, however, has a nice setup on the 180-minute chart. The MACD histogram is positive, so I can place a proactive buy order at 116.55, just above the psychological 116.50 level. My first profit target is at the 116.80 minor psychological level, and my stop is set at 116.17, near a recent low.
Managing the Trades
As expected, the 10:00 AM ISM number brought a wave of volatility. The Aussie immediately hit my second profit target at 1.272 Fibonacci level on the wick of the candle—a perfect example of why I pre-set my limit orders. It would have been nearly impossible to catch that price manually.
The Canadian dollar also moved up, hitting its first target and allowing me to take half my position off the table. The yen also pushed higher with the U.S. dollar, but it stalled just before my 116.80 profit target, so I didn't get a fill.
Soon after, the U.S. dollar began to pull back, and my remaining positions in the Aussie and Canadian dollar were trailed out by my stops. That’s a wrap for my morning. Since it’s a Friday, this is a good time to call it a day. It was a light session with a few aggressive trades, and I’m happy with the outcome. Two out of three isn’t too shabby.
