Make Make Money Perfecting Only 1 Setup A True Story
The following story is a true story about a trader I both know and have helped. For this article the traders name will be Rob. Hopefully you can learn and take something away from the success that Rob achieved by doing things differently to most traders.
Trading One Setup at a Time
When Rob was learning to trade Price Action I wrote to him and said I would highly recommend that rather than trying to trade and master every setup like most traders try, he should instead take one setup that he can easily identify and make that one setup his own. I went on to also say that after he had mastered this one setup he could then go about learning the other setups, by mastering one at a time.
Rob took this advice and thought it over. Rob is not the average person and he realises that what most people do does not bring them success, and to achieve the success he wanted he would have to start doing things differently to other people. Rob committed himself over the next three months to only trading one setup. He began trading this one price action setup on the daily and 4hr time frames.
Three Months …
At the end of the three months Rob came back to me and informed me he felt like he was close to mastering the one setup, and that he had now made some basic trading rules that helped him pick the right trades and how to manage those trades. These rules were things like; he would now only trade and concentrate on the 4hr time frame, and only trade from key areas with the trend etc.
Instead of then leaving it and going on to learning the other price action setups, Rob created a 12 month plan. Rob was going to continue to only trade this one price action setup he had begun to master, but this time using the new rules. Rob went on his way and we would keep in touch just to make sure he stayed on track and in line with his goals.
At times during the next 12 months Rob had moments where he was thinking about breaking the plan and starting to trade other setups. Each time I would explain to him that 12 months is not a long time, and what he was feeling was normal. One of the main reasons traders fail is their lack of discipline to carry out their trading plan.
I would also remind Rob that he was doing things that most other people would not do, and if he wanted to get different results to other people, he is going to have to continue doing different things.
Rob stuck at it and at the end of the 12 months he was glad he did. Over the 12 months is it fair to say that Rob mastered his one price action setup, and he had made it his own. Rob now knew what to do in every scenario the market through at him, and exactly what a good setup looked like.
12 Months …
At the end of the 12 months Rob had averaged five trades a month, trading only one price action setup on the 4hr charts.
Over all these trades Rob averaged just lower than a 75% win rate. Each winning trade averaged almost 2.5 risk reward per trade. If you are not familiar with risk reward, all this basically means is that for every dollar Rob risked on each trade he made 2.5 on the winning trades. Obviously these results are incredible and it is a credit to Rob.
After the 12 months was done Rob did go onto to learn other price action setups and master those as well, however by doing things differently Rob was able to achieve results many traders only dream of all with trading only ONE price action setup.
What Rob did by learning and trading only one price action setup was concentrate all his energy and focus. Instead of trying to learn many different setups at once, and getting the confusion that comes with it, Rob’s sole focus was mastering this one setup and becoming the absolute best trader he could be with it.
Rob showed a commitment that many traders lack. So many traders will jump from system to system and complain when something does not work for them. Trading is there for people to make money.
It is however not there to give away money and if you want to start achieving great results like Rob did, you are going to have to commit to a trading method such as price action and master it.
If you want to learn more on how you can start to master Price Action trading you can check out the Forex Price Action Trading Course Page.