Traders struggle because they try to overcomplicate things.
All of the setups I teach are simple. You just need the discipline to wait.
This Simple Pattern Tells You What To Buy, When To Buy, and When To Exit
Table of Contents
The Big Picture
I’ve seen traders with 20 indicators on their chart. It’s like they think the more indicators they use, the more sophisticated they are.
To me…
Simplicity Is the Ultimate Sophistication
The reality is, they’re just looking for a reason to trade. They want action.
They want trading to be like a video game.
When you play a video game, there’s always a bad guy around the next corner. I think that’s why so many new traders are constantly trying to make things more complicated.
Because if you add all these indicators and layers of complexity, guess what?
You can always find a reason to trade something.
Making things too complicated, it’s like there’s always another bad guy around the corner.
This is exactly why 90% of traders fail.
They’re always doing something. It’s like they always have to be trading. It burns up so many new traders.
With simple setups, there’s no bad guy.
If Real Trading Was a Video Game, Nobody Would Play It
It would be the worst video game ever because all you do is sit and wait to see if a stock follows a pattern. There’s nothing to shoot.
Trading is not about getting all-day dopamine hits.
Real trading is 95% waiting, okay? Like this…
That’s the reality.
Now, most people don’t like it because it means you’re actually doing something a very small percentage of the time.
That’s why there are so many hunting analogies for trading…
Trade Like a Hunter
Hunters know that you sit there in the tree stand, waiting for the situation to evolve. You don’t just start shooting trees.
With a lot of new traders, it’s like they get up in the tree stand, they get a little bored after half an hour, and they just start shooting squirrels. They start shooting trees. They start shooting anything that moves.
Now, a successful hunter sits and waits. Maybe his setup doesn’t appear. Maybe it takes three hours to appear.
When we build a watchlist and then pick our tops, that gives us our targets. Then, we sit and wait.
My Take
What if all of your tops today don’t follow any of the patterns? This is where using the OODA loop can save you a lot of wasted time and money.
We only act if one of the tops follows one of the patterns. If we’re watching a stock and it doesn’t follow one of the patterns, it’s just a watch. Maybe later in the day it follows one of the patterns.
But until it follows one of the patterns, it’s just one of the tops. We don’t move through the OODA loop until the stock does what we want it to do at each step. Happy hunting, my friend.
Watchlist
GlucoTrack Inc. (NASDAQ: GCTK) completed a 1-for-2 reverse stock split on Monday (Oct. 6). Since then it has stair-stepped up, with sideways consolidation between spikes.
GCTK 10/28/26, 5-min candles, potential gap fill
GCTK’s ability to hold near VWAP surprised me. I figured it would be a good morning runner and then fade all day yesterday.
If it breaks above yesterday’s Oracle signal at $2.13, it could fill the gap to the morning high at $2.50. Remember, have a plan and trade the plan.
On My Radar
- Earnings watch: Intel (NASDAQ: INTC), Amazon (NASDAQ: AMZN), and Sandisk (NASDAQ: SNDK) report today after the close
- Always look for trade ideas in the adjacent
- Oldie but a goodie: “The Crowd: A Study of the Popular Mind” by Gustave Le Bon
- This obscure, sub-$5 stock is positioned directly in the path of America’s coming drone boom