{"id":15795,"date":"2011-12-05T13:42:15","date_gmt":"2011-12-05T18:42:15","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=15795"},"modified":"2023-03-31T13:53:11","modified_gmt":"2023-03-31T17:53:11","slug":"understanding-market-structure","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/understanding-market-structure","title":{"rendered":"Understanding the market structure of the day impacts all of your intraday trades"},"content":{"rendered":"<p>Understanding the market structure of the day impacts all of your intraday trades.\u00a0<a href=\"http:\/\/blog.afraidtotrade.com\/\">Corey Rosenbloom<\/a> has done some excellent work on this important trading concept.\u00a0<a href=\"http:\/\/traderfeed.blogspot.com\/\">Dr. Steenbarger<\/a> has written about its importance. At SMB we talk about the Big Picture before we start our <a href=\"https:\/\/www.smbtraining.com\/blog\/trader-90-trader-365\">AM meeting<\/a>.<\/p>\n<p>Below is a self-proclaimed rant from a new trainee. We can learn from his monthly analysis of his underperformance about the important of identifying market structure.<\/p>\n<blockquote><p>Observing from my own poor performances in November, I\u2019ve studied the days that I\u2019m down and the day\u2019s I\u2019m up \u2013 the reasons behind it and my thinking process behind those days.<\/p>\n<p>I\u2019ve realized that knowing A\/B\/C setups, identifying risk\/reward, try to focus on psychology is important, but without this key component, I would never become a successful trader. This is the understanding of the current market structure.<\/p>\n<p>Everyone knows the crisis in Europe and how it became an inescapable headline risk that every trader must deal with across from the Equities\/Options market to the Debt and the Derivatives market.<\/p>\n<p>Everyday when I come in, I would outline my best morning idea and when market opens try to focus on that idea and find my best setup in that idea. However the problem becomes\u2026 why should that setup work today? If this setup doesn\u2019t work, what\u2019s your plan B? Are you going to wait patiently for that setup or become ichy to start making setups on the way trying to trade P&amp;L? It\u2019s these intertwining questions that pop up in my mind during the open. Keep it simple. Know all the what ifs for this stock that has potential for this day, and play them accordingly to plan outlined during morning research. Do not play the guess game and think on the fly game. It does not work and it\u2019s simply too much to handle for anyone\u2019s mind because emotions will start to factor in and result in a poor trading decision.<\/p>\n<p>Plan. Plan plan.<\/p>\n<p>I have to work on all the possible scenarios before market opens to avoid any guess work. Like carlton said, write them down and only do that on the plan sheet. Otherwise, don\u2019t trade. Unless the setup make sense and it also make sense for the market structure of that particular day.<\/p>\n<p><strong>There are A setups in breakouts, range, consolidation and fading days. But none of these things will work if you falsely identify the type of market the day\u2019s in. And I have fall into prey too many times thinking ok, if I have a good setup, good risk reward, it is going to work more times than not. False. It will only start to work only and only if it make sense for this particular day when I identify the right market structure<\/strong>.<\/p><\/blockquote>\n<p>Bella<\/p>\n<p><em><a href=\"http:\/\/www.amazon.com\/One-Good-Trade-Competitive-Proprietary\/dp\/0470529407\/ref=cm_cr_pr_product_top\">One Good Trade<\/a><\/em><br \/>\n<a href=\"http:\/\/twitter.com\/smbcapital\"><img decoding=\"async\" src=\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\" alt=\"\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Understanding the market structure of the day impacts all of your intraday trades.\u00a0Corey Rosenbloom has done some excellent work on this important trading concept.\u00a0Dr. Steenbarger has written about its importance. At SMB we talk about the Big Picture before we start our AM meeting. Below is a self-proclaimed rant from a new trainee. We can learn from his monthly analysis &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/understanding-market-structure\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[81,1828,1193,653,1354,1349],"class_list":["post-15795","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","tag-smb-training","tag-smbu","tag-trader-education","tag-trader-training","tag-trading-coach","tag-trading-mentor","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Understanding the market structure of the day impacts all of your intraday trades | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/understanding-market-structure\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Understanding the market structure of the day impacts all of your intraday trades | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Understanding the market structure of the day impacts all of your intraday trades.\u00a0Corey Rosenbloom has done some excellent work on this important trading concept.\u00a0Dr. Steenbarger has written about its importance. 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