What is heat?

Heat is when your trade is offside

Offside is when the best price available to exit "right now" is worse than your entry price 

 

Imagine you are skilled at reading the market to enter precisely as the market goes your way

 

What would this mean for you?

Your opportunities would increase tenfold.

 

Why?

 

If the market moves your way immediately, your risk is only your commission.

If that's the case, the market need not move far to pay you much more than what you risked.

 

Suddenly you are seeing more opportunities than you may have ever thought possible.

 

Right now, if you are risking "X" per trade, how far does the market need to keep moving to cover all of your losing trades?

 

And from your trading experience, 

how many of your trades go against you?

And not only do they carve up your account

Mounting losses drain you mentally. 

Don't they?

 

When you can pick trades that immediately go your way, you extinguish that problem. 

 

Listen,

Not every trade can go your way immediately.

But most can

And at worst, give you a paper cut.

So you still extinguish your problem. 

 

Tell me

What do you notice about the 7 trades below? 

(The white arrows are where the entries occur)

 

No to almost no heat was taken on the trades

What makes the above trading possible?

There's no magic mystery...

 

• it's competency in new skills

• plus a catalogue of playbook trades

• plus repetition

 

Look

minimal heat is vital to survival

Have you ever heard trading referred to as a grind?

It gets this name due to the frequent periods where your trading is doing nothing more than treading water.  

Sounds frustrating

Until you realise it's better than drowning. 

 

When enduring the grind (winners are "pocket change") it's vital your losers are tiny
Or your account will suffer. 

No heat to little heat trades stops your account from drowning in losses. 

 

Hey listen

If you don't have an edge, you can't play.

Agree?

So,

When you watch the live trading footage below

you'll know why your trading edge has to include

1. not taking heat, and

2. identifying trades that go onside immediately

Like what you’ve learned?

Check out the new trading curriculum