How to Avoid the “Boogey Man”

Every week, I see it happen…

Another trader gets wiped out by the same setup. Their entire account: Gone.

The worst part is, they never see it coming. And it could happen to anyone who’s unfamiliar with this play.

It’s not a black swan event either. This setup is lurking in the market right now, waiting for unsuspecting newbies who don’t know how to recognize the warning signs yet.

The best traders continue to avoid this setup like the plague.

They’ve been burned before, or they’ve watched enough friends blow up to know better.

But new traders fall for it every single week.

The setup always looks tempting. It might even look “textbook.”

There’s usually a catalyst, volume starts to spike, maybe you see some green candles and think you’re early to the move.

But you’re not early. You’re walking into a trap.

I’ve seen six-figure traders fall back to square one because they didn’t recognize this pattern in time. I’ve watched students ignore the warning signs, get emotional, and hold through the destruction.

Spot this setup and protect yourself against it, otherwise, you’re gambling with your entire account every time you place a trade.

Pay attention.

The Boogey Man

This trade hides in the shadows, ready to reach out and grab you. A lot like the Boogey Man.

But unlike the monster made up by parents to frighten their children into behaving, this Boogey Man is real.

I’ve seen it.

After more than two decades of trading in the market, I’ve seen this ghoul more times than I can count. And chances are, you’ve seen it too.

We’re going about our day as usual: Running scans, drawing popular support and resistance lines on key stocks, and we don’t see anything good enough to trade…

That’s when it strikes.

That little voice in the back of your head:

• “This setup actually isn’t as bad as I thought, maybe I’ll make a trade.”

• “I’ve been on a roll recently; none of these setups are perfect, but I literally can’t lose.”

• “One trade can’t hurt. Just so I’m not sitting here bored.”

You’re the Boogey Man!

Key to Trading in This Market

Look at my message below:

“ZERO trades for me in 2 days, I can’t remember the last time it happened and it feels sooooo goood. Quality over quantity…”

Not every day is for trading.

Some days are for studying, reviewing wins and losses, and sharpening the edge.

Forcing trades on slow days is how discipline leaks away.

You do not get paid for the activity.

You get paid for patience and emotionless execution.

Wait for your setup, be a robot, and let everyone else rush.

The market is under a lot of stress right now.

Big Tech stocks just pulled back.

The larger market sank alongside tech stocks.

The multi-month precious metals uptrend imploded.

There’s a lot of volatility, and volatility is good for traders, but only if we see our patterns on the charts.

Sometimes volatility manifests as a bunch of chop without a discernible direction.

It’s OK to sit things out until the market cleans up a bit.

My Patterns in the Price Action

The best trade is sometimes no trade at all.

I have specific patterns that I look for in the market:

• Breakouts

• Dip buys

• Panic dip buys

• Weekend swings

And I’ve traded with the same patterns for over two decades because they keep showing up in the market.

They’re a manifestation of human emotion on a stock chart. People behave predictably when they’re stressed.

I only make a trade when I see these patterns clearly on a chart. Otherwise, I’m just gambling…

Stop gambling on setups when there are much better trades on the horizon! You’re literally throwing away money.

From now on, only make a trade when you see one of our patterns.

If you have any questions, email me at [email protected].

Cheers,

Tim SykesEditor, Tim Sykes Daily