Test Your Mettle With Discretionary Trading

Last updated on February 13th, 2020

Mechanical types of trading strategies are great for many people for a variety of reasons mainly because discretionary trading is more “hangs on”.  Having everything being clear cut and objective makes it much easier for people to follow a trade plan of some sorts.

Knowing to do A when B happens takes a lot of pressure off.

There is no question that for mechanical types of systems, Netpicks is head and shoulders above the masses.

From swing trading to active day trading and all the way to full scale trading education, 16 years of in the market experience and education has given Netpicks an impeccable reputation.


Discretionary Trading Is My Biggest Test

After you have spent some time in the winners circle using mechanical types of strategies, you may find yourself looking to take it up a notch.  After hundreds of hours of chart time, some eventually see what is going on behind the flashes on their charting package.

They recognize certain cause and effects repeating themselves over and over again.

For me, my trading takes many turns including swing trading, day trading, mechanical and discretionary.  The biggest test for me is discretionary.

  • Market structure.
  • Order flow.
  • Blocks of orders.
  • Herd mentality.
  • Exhaustion.

These four words are just some of the things you learn about….mostly from chart time…..and you learn how to take advantage of them in a discretionary fashion.

As a matter of fact, even when I trade mechanically as in an indicator based system, some things are so ingrained that I have to override the system and do my own thing.  I have found I can take high probability trades when I take a discretionary view of things.

Does it always work out?

Of course not.

Nothing ever “always” wins. However, many times when trading discretionary and the market is simply not reacting as expected, I am able to cut risk severely so the loss is minimal.


Discretionary Trading In Action

I want to show you a short video of purely discretionary trading.  It takes into account many things such as:  playing both long and short, a losing trade, using market structure to increase the reward, using market structure to decrease the risk, picking the reversal move.

It is understanding some market concepts, reading price behavior and having specific areas where taking action may be a possibility.

If this type of trading appeals to you, perhaps it is something you may want to add to your trading arsenal.  Your trading toolbox.  One warning though…..not only does it take time to learn, understand and ingrain….it is also addicting!

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