Lessons from the live room: why we crushed it on Wednesday

Wednesday’s trading in the live trading room is shown below.

It’s not the completed trades that were key to the winning day, but rather, the trades we didn’t make…

As usual, morning prep provided the blueprint for the day’s trading. So after two failed short trades, we weren’t tempted to flip our view and initiate longs. Instead, we benefited from taking the other side of all those sellers who did flip their view; not once, but on two short trade sequences.

And as per prep, only after price moved to at least 0.7343 did we consider looking for long opportunities. However, notice (yellow circle) how there were numerous failed attempts to move higher? Only once it was clear the market had changed direction did we enter long, benefitting from you guessed it, buyers who had flipped their view to the short side who suddenly found themselves having to urgently exit.

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