Top 5 Deadliest Support & Resistance Trading Mistakes
ฝัง
- เผยแพร่เมื่อ 25 มิ.ย. 2024
- Truly, support and resistance trading is a strategy that stands the test of time.
It’s important to note that too many traders make simple, but very avoidable mistakes when trading support and resistance trades.
The real “meat” of this content starts at 05:13
These mistakes are some of the most common issues we see from younger traders on our desk and even worse, when not properly identified as a mistake, can hold traders back even as they progress into becoming consistently profitable, and even six, seven and yes, 8 figure traders (even they make these same mistakes at times).
Here is an outline of the mistakes we will cover: :
Not knowing market context - Don’t fight bigger picture
Trader on our desk knowing the levels, but not seeing the obvious Big Picture context and this being a BIG mistake for his trading.
Treating every level the same- Allocate Risk the right way
Story of trader making Same trade, same risk and the feeling of “what the hell?” I only made x on this when losing 90% of x on that lesser opportunity.
Not know the real important levels - Look Left, know the real levels
Story of trading against an Intraday important level, hourly important level just below was WAY more important - hit the intraday break right into the daily level, worked and stopped working quickly and it was a GREAT scalp the other way
Not considering volume - Volume is a big clue
Trading long without volume on a break - others on the desk were licking their lips for a fade because of the quality of the level, he was bulled up looking for a trade that just was not there
Not planning what PlayBook trade to take
Trading a LCID break and covering super early as a microscalp but in review, looking at it as a PlayBook Trade and cruising it next time
We will break down these mistakes and go into some great examples and even highlight best practices to help you better take advantage of this truly important element of trading. When you master support and resistance you can better understand market direction, real entry set ups, and real reasons to sell.
Learn the top 3 trade setups we are using on the desk here: tinyurl.com/4zy5878f
#tradingmistakes #stockmarket #daytrading
SMB Disclosures www.smbtraining.com/blog/smb-...
Learn the top 3 trade setups we are using on the desk here: tinyurl.com/4zy5878f
Did Mike go to Massapequa HS?
Summary
1 Trading S&R without knowing the Market context
I thought this was a good support level, but got stopped out immediately
The whole market was down for the day and trending DOWN
Without looking at the chart, ask yourself, how do you have support and resistance on a downtrend day? You DON’T
On an individual stock, especially an Index Stock, compare the STOCK to the QQQ or SPY
If the whole market is going UP, and your stock just took a dip, there is a conflict
2 Treating every level the exact same
Volume is VERY important
Even if the Price Point is the same at a breakout level, the VOLUME is WAY more important
Know how to SIZE your trade. Small Volume = Small Trade. Large Volume = Larger Trade
3 Not knowing the really important levels
Back up and look at Support and Resistance Levels, 1 day back, 5 days back, 10 days back, 30 days back
Support and Resistance should be looked at on the one day chart. But, compare that to previous day levels
Look for the KEY areas of Support and Resistance
4 Not Considering Volume
When you have a move UP into Resistance, look at the VOLUME
No Volume, No Trade
5 Not taking the trade from your Playbook once you see the right setup
Thank you
Thanks for writing this out. Read every single line. 🎉
@@AfricanWifeinPakistan really helpful. The narrator preamble was extremely long. Great summary
Wish I saw this before losing 7k on TSLA today. 20 point move with no pullback after so much major fundamentals news, my worst day ever. Gave back all my gains for the past 2 months.
Ouch, been there. Not a fun place to be, losing two months of good trading on one trade. My condolences 🙏. You can turn this set back into a set up for your comeback! Good luck!
I feel you
Lost 3400 on tsla today
I trade reversals so trend days can kill me.
Which part of this video could have helped us? Did it break out of important resistance?
That sucks :( I believe everyone goes through this pain. Size down for a while and you'll make it up in no time. Best of luck!
How the f can you reset 2 months in 1 trade, how can that happen. The biggest mistake would be to not understand how you did that and replicate that mistake during the 6 months to come, it is just forbidden
It's good marketing that avatar/customer feels understood, but he totally overdid it.
This is possibly the most important video on trading i ever watch on youtube... Thanks for your time and effort ..
SMB are one of the rare, if not the only ones, that gives the WHY and HOW; and not telling you to simply wait blindly for a list of confluences you can't explain. Thanks a lot SMB.
Watch these long videos on 1.25 speed or 1.5 speed. Much better.
This is one of the simplest but the best lessons. Thank SMB for sharing.
Really good video, Jeff. During your intro, it felt as if you could’ve been speaking directly to me, addressing some of my biggest mistakes. So this one really resonated with me. Cheers for that.
I am not a member of this organization, BUT this is a really important lesson. Thank you for putting this out there in the universe for the rest of the trading community 🙏
Good job explaining this concept MikeyB.
Good lesson! Thanks for sharing.
This content is invaluable guys thank you for putting it up for free!
I literally made the same mistake on AMD😅
I can’t sincerely thank you enough for laying these out. I know I’ve been making the same errors, but just didn’t fully understand how to categorize and track them. So, this is a tremendous help.
Without doubt the very best trading channel by a long shot
Thank you so much for sharing ,SMB Capital always providing great content with us retail Traders❤
thank you!
Super super helpful. Wow I made these mistakes all the time except for the first mistake.
this was a great lesson!
Eye opening video
As someone finally getting a clear vision on trading S/R levels. I’ve def made all these mistakes. Great video 👍
Thanks for posting this! Yeah, going long or short on medium to large caps and NOT paying attention to what the market is doing or ignoring what the market is doing is a big big mistake. It was also so important to point out that there is a BIG difference between a breakout off of important level at the market open vs later in the day AFTER the stock has already made a big move. Past that point, I'd just be scalping these moves at best. More likely, I wouldn't even trust those breakouts and wait for the breakout to fail, retrace new support and only enter into it once I see continuation off of new support. Yes, I may miss out on an even bigger move, but getting into what is likely to be an exhaustion move is too risky and can be very costly.
Well put
Nice video 👏
thank you for your invaluable sharing SMB! I liked that alot..As a forex trader, if i dont have reliable volume per se to gauge, what are/is the next best thing i can look at other than volume?Thanks!
I had problem with mistake 5. Had idea about trade right but to hold on to trade was a problem. Anyway great video.
I've got am entire monitor dedicated to macro. SPY, TICK, QQQ, DXY and a handful of yield rates all to glance over to see where market sentiment is at any given moment. I have had great ticker setups, but learned very quickly not to try and trade against the overall market. It is like trying to swim upstream. Your setup might be great, but the macro headwinds take that trade completely out of play. Just something to keep your EV skewed in your favor.
What if you trade SPY and Q?
Great advice, thanks SMB
Awesome talk, thanks Jeff!
You bet Joe!
Thanks great to keep of this facts on mind
Great video thank you!
Glad you liked it!
I like this guy specifically. He doesn't read what he's spoonfed. He knows what he's talking about.
Thank you
Great video!
Ya for sure... I got a few problems figured out, no real solution i implemented yet, just awareness and trying to get better. 1. I dont stick to plan a lot of times in my mind i know where proper risk is, but i stop out prior. 2. my real mental stop is too tight 3. My avg winner hold time is too short.
mistake no 3 and 2 are really very important
I compiled in "Book Of Horror" learned from Trader Tom all these kind of trades.
Markets trend 20-25% of time
75%-80% go in a trading range
Set up you’re interested in must align with market conditions
If market is trending, then forget support/resistance levels
Likewise, if market is choppy/trading range, then forget using trend following indicators such as moving averages.
Finally , must be aware of 10 days ATR ( especially for day trading)
is this chart Trading View, or it’s an SMB proprietary platform?
11:20 - what percentage of the trader's account should be allocated to this NVDA breakout trade at $430 at the open when it broke out then? (was that Wednesday 12 July 2023?)
Is this for a SHORT bounce or dip bounce?
Does anyone know what trading platform SMB uses?
This video Definitely would’ve helped today. Tried fighting the trend and finding tops and got smoked😢
Never counter trend trade unless you like to be poor. Always trade with the trend. ADX indicates trends 20 and above is building trend day. Above 50 Strong
5:15 #1 mistake
10:01 #2 mistake
14:10 #3 mistake
16:56 #4 mistake
19:28 #5 mistake
8:30 at this moment QQQ looked like a possible bounce/morning reversal set-up, and if this reversal took place then he would have had the broad market wind blowing his sails. it was 50/50 choice. right? why were you so confident that QQQ would continue selloff from 9-45am?
I have never understood what is the point of volume indicator since one sees the same thing in the chart anyway.
I felt like it was me ,you was talking to
reversion instead of trend or just looking at price instead of setup. I was in the same shoes, novice mistake. yup, trend.
Can International candidates join ur desk ?
🙏❤️
Low break of the daily pattern was a poor trade. The R:R was there, however it wasn't as high of a win rate vs the gap close reversal that was setting up. He forced a setup. Taking market dynamics out of the equation, it's a bad trade. Factor the overall money flows, you had a HORRIBLE trade.
This reminds me of guys in the covid boom who simply bought dips, yet slowly bled out now that their old style doesn't work.
Combine that with reading the highest RVOL in the previous failed push on the daily, you should already know that it was going to trend down for a bit.
One thing that traders do wrong like you said in a video before is most traders trade levels which is wrong you need to trade areas because most traders start putting there stop Wright below there level so they get stopped out
Very true your stops are hunted because millions of other traders are doing the same so big money slams just outside supply and demand zones because that's where all the money is just parked for the taking. Then they rip it back the other way! Always place your stops past the wicks or you will be stopped out like most.
@@johnalderson3566 yes definitely agree
Like the video title but after 5 minutes still nothing to do with the title…couldnthe intros be shorter?
As you know, the market can stay irrational longer than you stay solvent. So much is random chance.
Mistakes start at 5:16
Only thing i hear for first 5 minutes is Mistake, miatake and mistakes..
Is shark still there?
Yes he is!
@smbcapital very nice video exposed all my most common mistakes!
Thanks!
Pain = Millions
I Want To Be The Best Person And Most Successful I Can Be ! My Mindset Is, I Want To Have A Premierships Mindset In Trading 😃 By Using Sports Analogy. I Do It Daily Week Days and Weekends ! Trading Is My Life Now !
Jeff either needs to use a bigger mouse on his screen where students can see where and what he is talking about on the charts, or make sure he is using his mouse while he is explaining where he is talking about on the chart. I'm watching this on a smartphone. I can't tell heads or tails where on the chart he is talking about. 😢😢😢😢. Then the cameras flip back and forth off the chart back to him, then back to the chart several times. I've rewound this several times and still get lost on his explanation. Wish my eyes were better than 20/20. Jeff, I love you, brother. You, Garet, and Mike B. Are three of my favorites. Just saying!
The biggest mistake is to use support/resistance in your trading at all. The big money don't care about historical levels and no hedge fund is going to look at "support/resistance". It's such a waste to sell a position at a "resistance" level when you have a strong idea that the stock may finish much higher. It's the biggest way in my opinion to kill your P/L. Technical analysis overall is BS in my opinion tbh. I have been a losing trader for 1.5 years trying to trade the tape/technicals and anything inbetween and I am now profitable (based on fundamentals & big picture) and I don't look at ANY technicals. You'll be so much better off removing them from your charts. This is just my opinion though, whatever works for you
Omg. First 5 mins of this vid just repeating how big of a problem this is. GET TO THE POINT!
Clearly someone has an extreme lack of patience. Please do not trade you ain't made for it.
@@suad1007 ok you’re missing the point. If you want to make a quality YT video, don’t have an endless teaser. It only annoys people. There’s plenty of other content out there to watch than to waste 5 minutes on a intro. Content creators do this to increase watch time for monetization.
I’ve started watching videos like this at 1.25 or 1.5x speed. It definitely makes videos that draaaag out the content or repeat the same thing much more tolerable.
Sounds like sweatshop you are running there 👎🏻
Hi there, Could you also recap the 5 trading mistakes points and list them out in the summary via bullet point headings and/or post them in comments as well for easy future reference? @SMBCaptial
Thank you