Being Picky, Waiting For the Best Setups

When I first started to trade I was always looking to get into as many trades as I could. Tonight while I was looking for a trade and another post for the Forex Trading Journal I saw several entries that looked promising. However, I decided not to pull the trigger on any trades tonight and thought that I would write a post about being patient and finding the best setups rather then settling for any old trade.

One of the major psychological hurdles for me to over come was over trading. I always had to be in a trade at all times and when I was searching for trades I would usually jump in without much thought. As I have advanced over the years in my trading I have learned to be more patient and wait for the setups I want to happen. That is me controlling my trading rather then letting my trading control me. Tonight I have some key setups that I am waiting for but I don’t mind waiting because I know that eventually they will move into a place where I can trade them.

So instead of taking any old trade I am going to wait for the pair to move into a position that I have the most confidence in my trades. Part of that is waiting for a retrace or pullback. If I missed an entry of a trade that I wanted to get into I will exercise patience and wait for the pair to move back into support or resistance before entering in the direction that I believe the trade is going to continue to move in. I never enter trades unless I am either in on the initial move or if there is a pull back. I have learned not to chase trades because when you do that, the price will usually whip back and stop you out for a loss.

Using patience and waiting for the best setup rather then taking every trade that comes my way has added to my trading profits and that is something I like. I am always looking for ways to fine tune and improve my trading and choosing the right trades has added to my totals by quite a large amount. It is amazing how a few small improvements can add up to large gains over the long haul.

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  • Thanks for the comment.


  • OJO,

    Blessing to you and your family 🙂

  • I use the 20 period SMA 40 period SMA 200 Period SMA and I use it on the close.

    Thanks for the comment please come back again.

  • User

    good article, so true

  • shallom

    always you have always been A GREAT-GOOD EXXCELLENT and CARING apt mentor

  • Graeme

    Yes so true I can identifywith this

  • I agree that age can be a factor but not always. I believe experience and wisdom have a big part of the discipline factor.

  • I think time in trading helps. When you lose lots then it forces you to be disciplined or to quit.

  • Dkoste77


  • Dave P

    I dont think age is always the reason I am 53 and really seeing my lack of patience and jumping in
    is a common theme with me
    I tend to go through phases
    Discipline is such a big one for me and gradually after a year i am losing less and less and noticing the less i trade i actually make more
    tough but rewarding
    Dave Powell

  • mihai o.

    This is so true. I think most of the time it's the age that drives you straight into the action. If you are young it's so more difficult to keep your horses calm and disciplened, but with time and experience the things are getting changed slowly but constantly.
    Thank you for great advices on trading. I feel I have much more to learn from a professional like you.

  • Andres_vahopski

    Andres W
    Hy Casey I have a question for you this is non related to this article, although I have been trading less than 6 month I understanded that quite quickly that there's no need to rush into a trade. I use horizontal resistance lines and candle patterns but recently I started to use moving averages.Oh yes and here's my question what settings do you use: open, close, high or low or some other setting.
    Hope you have time to answer btw I really appreciate what you are doing and wish you good luck.

  • Merv

    so true!

  • I look for pullbacks with in the trend The indicator I use is price and moving averages.

    thanks for the comment.

  • thanks for your comment please come back again.


  • jersoner

    I agree i had the same 'addiction' and when you learn to hold back, most of the “impulsive” trades that you now watch go wrong … what setups do you look for your best entry points ? Do you use confirmations from indicators ?

  • Melih

    Thanks for your kindly sharing.. Have a good day…

  • One setup I am looking at right now is for the GbpUsd to pull back and when it does I think I will get in long again.



  • Jason king

    Good point. But what setups are you waiting for?