As I look back over the years on my trading journey, a lot of it has centered around a central question: What is the missing link?
Usually in everyone’s trading journey they ask this question, probably more times than they would like to ask it. I certainly asked it hundreds if not thousands of times. There is nothing wrong with asking it. The key is to find the right information, understand it in the proper way, and apply it to trading.
What Is The Missing Link?
When you first are introduced to the markets you may ask the question about what is the missing link to make money in forex. You get introduced to charts and see all these green and red bars moving up and down and the chart just looks weird to you. If those early charts that you saw had a bunch of moving averages and technical indicators, then you probably got the impression that the market is a big complex mathematical formula with these algorithms and moving averages, etc. You believe the missing link to achieve forex success is to add those technical indicators as well.
So you go on that journey and enter the beginner trader cycle. Some people stay in it for weeks, months, years, others for a lifetime.
You place a few trades, hop around from system to system, and try to find success. Eventually you may figure out that it is not working for you. You ask the question what is the missing link?
Price Action Trading
After the technical indicator cycle, some people may go into the quant world with programming, expert advisors, etc. I went into price action trading. After all, if I loaded up my charts with all this stuff, perhaps trading in a more naked way with more simple tools would be the next step. I thought it was the missing link.
I would catch a few nice trades here and there, but give the money back with a series of consecutive losses. Some people may make money with it, but I was looking for a different, higher level of success. A higher level of harmony with the markets movements. Again I asked the question, what is the missing link to achieve maximum trading profits? I went into order flow trading.
Order Flow Trading
Then I entered the world of the order flow trader cycle. In the beginning there wasn’t that much information. There was some stop hunting and option barrier info. Developing the order flow mindset, expectations, principles, and extra strategies needed to exploit the order flow traders took many months. Throughout the process I was searching for the missing link. I was asking what is the missing link to understand the market movements. I was wondering what mindset changes, habitual changes, etc I needed to make in order to be plugged constantly into the opportunity flow. I would push myself into asking the question about how I could find the missing link in order to catch a huge market move before it happened, or in the early stages of it.
It was just a constant search for the missing link. Searching for the missing information, the missing pieces of the order flow puzzle that made me understand the market movements and realize how to capture them.
And that is only for the trading system path.
There are all sorts of missing links that you need to solve and find in regards to money management, stop placement, profit targets, trader psychology, slaying inner trading demons, etc.
Recommended Trading Books
I got some of my answers from the trading books that I have read. I have read many unique trading books. Most people may recommend a chart pattern book, or one of the classic trading books like Reminiscences of a Stock Operator. And some of them are good. But I don’t know of too many people that have recommended The Greatest Trade Ever, Inside The House of Money, or More Money Than God. But I have read them, and they are great books. You just need to read them while asking the right trading questions about order flow, liquidity, etc. Getting on my recommended trading book list is a very high hurdle indeed.
The most progress and answers to the missing link questions comes when you can tie the information in those books to current market movements. That is where the real breakthroughs and rapid trading revelations, insights, epiphanies come from. Luckily I had established a certain daily regimen and habits that allowed myself to do that.
A lot of people say that many people are searching for the holy grail. Some people truly are. But many more are searching for the missing link. They are searching for answers to help them figure out one more piece, then one more piece, then one more…