My Premarket Prep on Friday morning was definitely a teaching moment.
I’m always prepping my students with trades for that day. That’s a constant…
But once in a while, a situation presents itself where I need to dig a little deeper into certain concepts and trading mindsets that everyone needs to be reminded of.
Friday was one of those days. I had a long list of setups in front of me, but not one of them excited me. They were all just “okay” choices.
The only one I kinda liked was Gryphon Digital Mining Inc. (NASDAQ: GRYP). I was hoping for a nice RCT play…
In fact, we did get an RCT, but the gain that came later ended up being pretty lackluster. I guess I was right for not loving that setup.
Take a look:
GRYP 2-Day, 5-Minute Candles Chart; SteadyTrade
I’m always honest…When nothing stands out to me as a great opportunity, you’ll know it.
That’s why I changed gears a bit and acknowledged that maybe I was digging too much. Maybe I was searching and searching for something that just wasn’t there.
That’s not to say there wouldn’t be some ideal plays once the market opened…
But at the time, I was fishing.
And fishing is a red flag. It’s a sign that we, as traders, should step back and take stock of the situation.
This is when trading safely is of the utmost importance.
Here’s what I’ve learned over decades of trading: Good setups scream at you.
Nothing was screaming at me on Friday.
They don’t whisper. They don’t hide in the shadows. If you have to convince yourself that a trade might be good, it’s likely not.
Table of Contents
The Market Isn’t Always Giving
That is the cold, hard truth. Traders need to set their expectations properly.
The market doesn’t owe you anything.
It doesn’t care that you’ve been up since 4:00 a.m. It doesn’t care about your goals, your watchlist, or even your carefully crafted trading plan. Some days, the market just doesn’t provide clear opportunities, and that’s okay.
Chasing trades on those days is like forcing a puzzle piece into a spot where it doesn’t belong.
Good setups should be obvious. They should match your criteria without hesitation.
The Dangers of Oversearching
When you’re forcing yourself to find trades, you fall into the trap of overtrading. Overtrading leads to:
Lower Quality Trades:
You’re not taking A+ setups; you’re taking C or D setups just to trade. That’s a fast track to disaster.
Emotional Burnout:
Constant scanning and second-guessing will make you start seeing patterns that aren’t there. Your brain and your ego want to justify the time and effort you’ve spent searching.
Loss of Discipline:
Every time you take a subpar trade, you chip away at the discipline that separates successful traders from gamblers.
Remember, not trading is a position.
Sometimes, as hard as it may seem, the best thing you can do is sit on your hands and wait for the market to come to you.
Remember the Hallmarks of a Good Setup
Here’s what good setups typically look like:
A Clear Catalyst:
Is there breaking news, earnings, or another strong driver behind the stock’s move?
Obvious Price Action:
Are you seeing clear patterns, like a breakout, a strong RCT, or a VWAP Hold, or are you struggling just to make sense of the chart?
Volume Confirmation:
Is there substantial volume behind the move, or are you looking at thinly traded, unpredictable stocks?
Alignment with Your Plan:
Does this setup check all the boxes in your trading strategy, or are you bending your own rules to justify it?
If a trade doesn’t meet these criteria, skip it. There will always be another opportunity.
Focus on Quality Over Quantity
One of the biggest mindset shifts for newer traders is realizing that trading less can actually make you more.
Think about it: if you only take setups with high probability, you’re reducing the number of losers in your portfolio.
And if you’re sizing up only on quality setups, those wins will far outweigh any potential FOMO from missing mediocre trades.
Stop forcing trades and start embracing the power of patience.
My Final Thoughts…
If you’re searching endlessly for trades, it’s time to reevaluate.
Are you trying to trade for the sake of trading, or are you sticking to your strategy?
Good setups will come. They might not come today. They might not even come tomorrow. But when they do, they’ll be obvious.
Your job isn’t to find every single trade. Your job is to wait for the right ones.
The first step to finding the best setups is to have a robust trading platform that features real-time data, charting, technical indicators, and more.
My top pick, and the one I use every day, is StocksToTrade.
It features everything mentioned above…PLUS, right now, you can get two weeks of both the STT platform and our Breaking News Chat service for $17.
Grab your 14-day StocksToTrade + Breaking News Chat trial today for only $17!
Stay disciplined, stay focused, and wait for those setups that jump out at you.
They’re out there…Your patience will lead them to you.
Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade
P.S.
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