so I wanted to talk about the idea of forcing trades what am I talking about
when I'm talking about forcing trades I'm going to go over in this video
talking about how I force some trades a day and generally work out for me I'm
talk about why forcing trade is a bad thing to do when you're trying to be a
consistently profitable day trader if you want to learn more about day trading
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questions I'll answer the question so I talked about this in a couple videos how
I force trades sometimes why forcing trades is a bad thing in why you should
never force trade so I mean it's kind of like common sense like why don't force
trade is kind of over trading but let's talk a little bit more about what it
means to force a trade and why you know what's the deal with forcing trades so
frt a perfect example it bounced off this 526 area ran up here to 550 had a
pretty nice little trend going making higher lows higher lows higher lows and
moving higher here got here to 554 it broke the trend here at 550 there was a
trendline you know that right there broke through pulled down here to the 33
so I shorted there at 550 that was a perfect setup really for this
opportunity it was looking weak it was getting overextended the volume
was slowing down had that double top a lot of resistance there so I shorted
there 550 perfect that's a good trade I did a good raid there it dropped down I
think it's a full move here but ended up covering there at 544 from that 550 I
got like 6 cents on 3000 shares so it wasn't that bad but if you look here I
went short once again here kind of over trading this and forcing this trade here
really and give you an idea of what happened here end up going short here at
5:37 kind of on this breakdown when it started to crash and you can see it came
down pretty nice came down here to 525 there and I covered there at 533 so I
got a little only about 4 cents so it wasn't that big of a deal but I got a
little bit of a move here and you can see after that it squeezed up here to
538 so really this would have been the better opportunity I should have waited
I should have been patient I should have waited for the right setup this pull
down here to that 525 area 526 has some support there and then bounces up here
you can see earlier had that support there 525 on a support so really you
know this was like kind of no-man's land I
guess if this crashes if I bounce 25 25 that would be a lot better covering down
here at that support area you know really the best setup here would have
been to wait for this bounce off the 525 area wait to see some resistance wait to
see some selling you know we get this kind of bounce here at bounces up here
to 538 kind of falling this moving average and then BOOM
double top at the 538 537 area that would have been the spot it shorted it
I could have shorted there at the 536 and then got this full move down lower
here all the way down here to 507 so that has been a beautiful trade there
and one of the reasons like I said these I kind of forced in this trade here I
shorted that breakdown with that trend there so that was a good entry I didn't
capture the whole move but still it worked out it wasn't bad but this trade
really could have been a lot better here if I'd have waited for that right
opportunity for the right setup here if I would have gave us some time knowing
that that support was there but instead I was kind of rushing it's kind of
forcing it and I forced this trade here on F RTA and if I would have waited it's
already got here the double top this would have really pulled down here it
came to just 525 again after it hit there before it ended up breaking
through there but it's really about entry a lot of times what happens is
people don't wait people forced trades and they enter at a bad time when they
just enter because they want to get into a trade or the stock kind of squeezes up
a little bit and then it comes down or you don't get the full move there what
happens is mentally you're just like clicks a profit or you're just kind of
scared you cut your loss faster because that you get a good entry but if you
wait and you use sniper precision to get the best entries that's normally when
you get the best move when you get the best opportunity because you really have
a good entry you feel good about it a lot of times when I force a trade I feel
like I don't get the full move because I'm like oh I know mentally that I got a
bad entry that I need to take profit fast because it's not really a good
entry I might get squeezed here so that's one of the things right off the
bat kind of a red flag for me if I'm forcing a trade if I get into it and
right off the bat I'm like oh man this is a bad entry I'm gonna get squeezed
here I'm going to just cover it's a loss and already from the start of the trade
I'm already in a bad place I'm mentally kind of screwing with myself so when I
get that bad entry when I force a trade it's like right from the start it's just
a bad setup so even if the stock does go lower a lot of times I'll end up
covering too soon because I'm like hey I need to get out of this trade because I
got a bad injury so right there I'm basically cutting my profits shorter
just by forcing this trade instead I should have
swayed it should've waited for the best entry should have waited and be like
okay it's easy to look at the chart now and you know hindsight's 20/20 but
really I should have noticed I should have seen the support there I should
have waited for that balance off the support waited for the resistance to
show up again and really got in there you know shorting into the strength
instead of shorting into weakness a lot of times I find that if you wait for
those best opportunities if you wait to buy at a perfect time if you wait the
shorter the best time that's what you're gonna get the best move let's we're
going to get the most profit letting that trade set up and going into trade
right off the bat you're like hey I got a great entry here this is looking good
you feel confident about it and that's normally when the best trades happen
that's normally when the best results come the best profits when you get into
that tray with the best entry so there's any times where you kind of chasing or
you just have to get into a trade because it's crashing or it's going up
really fast so you don't get the best entry but even on those kind of setups
see it you see us going good but a lot of times when you're forcing trading
when you're over treating those are the kind of setups like this setup there
wasn't a lot of volume I was kind of looking at it I'm like this is going to
crash you to get in on this and you know kind of worked out a little bit but I'm
going to got a lot better of a move I'll just waited for the perfect setup you
don't always get the best setups but really kind of going into the trade with
the thesis you know seeing like okay 5:38 just 540 areas resistance I want to
see just get smacked down from there again I'm going to see this crash down
once you get through this 525 area get a pullback to the 508 area and kind of go
into with that plan you're going to go to execute a lot better so that's one of
the things I have problems with sometimes overtreating forcing trades
but really today kind of forcing trades here on F RTA I got a bunch of trades aw
I don't want to go through them all because it's kind of embarrassing how
many trades I got today on F RTA but you can see that first short there at 5:55
and then down here for 40 kind of shorting it on the way down hitting it a
couple times though I mean more than a couple times but three or four thousand
shares of time and covering a Salvin covering a thousand and kind of let him
move on down lower but kind of missed out on this huge move here from 550 down
to 440 year that would have been a beautiful short but I was too focused on
the fast you know in the moment I wasn't really focused on the overall plan here
the actual game plan you can see looking at the 5 min chart it's pretty clear
that that 550 entry was pretty good so could just let that one run a little bit
longer 3 or 4,000 had 3,000 shares in that first 550 trade
when I mean you know actual plan like I see this trend I'm like okay this trend
looks good here but this trend breaks down I'm going to go short like so just
trying to reverse I'm like to go back down the supporters that's my thesis
that's what my game plan is if I go into this something yeah it's going up oh
it's going to crash I'm going to get into it I really know what the plan is
and you don't go into the trade with the right mindset
there's the emotion of it in the mental aspect of day trading that's so hard to
master and I'm having trouble too every single day you know I always try to work
on it try to become a better day trader and I can learn about charts and I can
learn about all these indicators and everything and all day long but when it
really comes down to it's the mental ability to be able to identify know when
I'm over trading to know when I'm forcing trades and to be able to step
back and just put the brakes on and say Patrick don't over trade this don't
force this trade give it time let it set up wait for the right setup and then
execute the plan you