What exactly are playbook trades and why do the best traders swear by them?
What would you say.
If asked to describe financial markets to someone who's never heard of them?
You'd use terms like:
chaotic
random
volatile
unpredictable
wild
never constant
Right?
As a serious trader your first step is to chunk down until you have a framework that brings order to your trading.
Think playing field and sports.
Within the field of play is when you can trade. Out-of-bounds is when you don't trade.
But it's not only about being in the field of play.
In team sports players have unique roles. Only in certain cases do they engage.
And trading is no different.
A trading playbook refers to a catalogue of strategies deployed in certain cases. And as a result they produce positive results over the long-term.
It means they make money over x number of trades despite in trading where nothing is 100%. Traders refer to this as edge.
You know what's satisfying and rewarding?
Imagine when the market presents an opportunity to combine several playbook trades at the same time.
Make no mistake.
We're in the odds business.
But confidence plays a role in everything we do, including trading.
Has your trading confidence taken a hit?
How would you feel knowing you were combining known positive expectancy trades simultaneously?
You’d feel confident. As a result, you’d act on your trade.
See why the best traders swear by a trading playbook?
Your only tasks when live trading are:
Recognise when the market behaviour matches a playbook trade
Execute the trade
That's it
You're going to see:
a long trade
and a short trade
from this week
But before that...
Why is there a 90% failure rate outside of professional trading?
It's because traders don't have an edge. i.e. no catalogue of trades that produce positive results over the long term.
And the reason?
It takes years of experience and knowledge to evolve a trading playbook.
So if you go it alone it's unlikely you'll ever get there. Agree?
But the good news is you have a choice.
You learn playbook trades when you trade at a professional trading firm.
Alternatively, you can work with a professional firm trading background mentor who can teach you their extensive playbook.
If you love trading but poor results and little progress are painful. A mentor can get you past this.
Onto the examples...
Now:
The examples are shared to show you:
Order and form can exist in what is an otherwise chaotic and random environment
You can play the game on your terms building your trust and confidence in trading
It's how serious traders can operate a trading business that has long term positive performance
The short trade is taken when four playbook trades occur at the same time.
The long trade is taken when three playbook trades occur at the same time.
