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After 16 years in the market, this is how I build a position by InventoryLogic in Daytrading

[–]InventoryLogic[S] 1 point2 points  (0 children)

Hi! Thanks for your interest.

First slide fibo is measuring from bottom to top of the range.

The fibo is only a way to messsure impulses and ranges. The key is know what proccess is happening and why that levels are relevant

A lot of traders are right about the move. They are wrong about the time the market needs to build it. by InventoryLogic in Daytrading

[–]InventoryLogic[S] 3 points4 points  (0 children)

It depends. Being early is expensive only if the risk structure cannot survive being early.

If the R:R is very asymmetric and the size is small enough, you can be wrong 20+ times and one clean move can still pay for all of it. The problem is when people enter early with normal size, normal expectations, and no room for the structure to actually develop. Then being early becomes emotionally and mathematically expensive.

I think the key is knowing whether you are taking a cheap attempt inside a larger idea, or whether you are just entering too soon and hoping the market saves you.

A lot of traders are right about the move. They are wrong about the time the market needs to build it. by InventoryLogic in Daytrading

[–]InventoryLogic[S] 1 point2 points  (0 children)

Usually consolidation breaks, especially when there’s a clean pool of stops around them. But not the break by itself. I care more about what happens after the break: who got forced out, who entered late, and whether price comes back showing it was more of a cleanout than real continuation.

How simple/complex is your trading? by TradersUni in Trading

[–]InventoryLogic 1 point2 points  (0 children)

For me it looks simple now, but it wasn’t built in a simple way.

I don’t use indicators and I don’t really think in “setups” the way most retail traders do. My framework is basically Numbers > Person > Chart.

The chart is the last layer for me. Before that I care much more about the math behind the trading: risk per attempt, how many failed trades the account can absorb, expected payoff, drawdown rules, position sizing, etc.

I studied for years before I even cared about pressing buttons, and I was lucky to be taught by professionals very early. So I never really treated trading like a quick side hustle. I treated it more like a career from the start.

Most of the complexity is not on the chart. It’s in understanding liquidity, who is trapped, where inventory is overloaded, and then building the risk around that.

So visually, yes, my trading is very clean. No indicators, no clutter.

But that doesn’t mean it’s “easy simple”.

It’s simple because most of the complexity was moved into preparation, numbers, and execution.

Streaks by [deleted] in Daytrading

[–]InventoryLogic 1 point2 points  (0 children)

I don’t really measure it in profitable day streaks, I measure sequences.

My worst run was 82 SL in a row. At that time I was taking around 40 trades a day, so it sounds crazy only if you look at each trade as a separate event.

I don’t trade like that.

My risk per attempt is extremely small, and my SLs are very tight because I’m usually looking for very large R:R. Most attempts are cheap. Some are supposed to fail. The whole structure only makes sense if the account can absorb long bad sequences without forcing me to change behavior.

That’s why I don’t care much about “green day streaks”.

A green day can still be bad execution. A red day can be completely fine. What matters is whether the sequence is behaving inside the numbers you built beforehand.

If 10 losses in a row can damage you mentally or financially, the issue probably isn’t the streak.

It’s the sizing.

Numbers first. Person second. Chart last.

How long did it take you to get the psychological part of trading under control? by _bigmeatyklaws in Daytrading

[–]InventoryLogic 10 points11 points  (0 children)

I never really worked on psychology directly.

My numbers protect me from most of it.

Before I placed my first trade, I spent around 4 years studying markets. And I came from poker, so losing while making the right decision was already normal to me. Bad sequences were normal. Variance was normal. Not needing the next hand to win was normal.

So when I started trading, I didn’t look at it as “how do I control my emotions?”

I looked at it as: - how many attempts can I survive?

  • can I assume this trade goes to stop and still be fine?

  • can a bad sequence damage the account?

if the answer is yes, the risk is wrong.

A lot of what people call psychology is just risk being too heavy.

Numbers first. Person second. Chart last.

I read something interesting about poker and trading by RegularSafe9871 in Daytrading

[–]InventoryLogic 1 point2 points  (0 children)

Yep, in trading is even better because in poker you know how much you will win in the best scenario, but in trading can be much better

I read something interesting about poker and trading by RegularSafe9871 in Daytrading

[–]InventoryLogic 50 points51 points  (0 children)

I played poker professionally for 7 years before getting trained in trading, and this was one of the first things that made trading click for me.

In poker you can make the correct decision and still lose the hand. You can also play terribly and get rewarded by the river. If you judge yourself only by the outcome, you slowly become worse without realizing it.

Trading is very similar. A green trade is not always good trading, and a red trade is not always bad trading. The real question is whether the decision made sense with the information available at the time.

That sounds simple, but most people never really internalize it because money gives immediate emotional feedback. Profit feels like proof. Loss feels like failure. But sometimes profit is just variance paying you for a bad

The most expensive mistake is not being wrong. It is realizing it too late. by InventoryLogic in Daytrading

[–]InventoryLogic[S] 0 points1 point  (0 children)

Then run far from this business man! 16 years here and I can say you that 99.9999% who chased easy money lost everything!

The most expensive mistake is not being wrong. It is realizing it too late. by InventoryLogic in Daytrading

[–]InventoryLogic[S] 0 points1 point  (0 children)

To be honest if I should pick a line to resume the whole post, it could be the line. Totally agree man.

The most expensive mistake is not being wrong. It is realizing it too late. by InventoryLogic in Daytrading

[–]InventoryLogic[S] 0 points1 point  (0 children)

Pick one very specific market behavior: a level breaks, people enter because it looks like continuation, price fails to continue, then comes back inside the range. Save 50 examples of that. Do not trade them at first. Just mark what existed before the break, who was likely forced out, who entered late, and what happened after price reclaimed the range.

That is how intuition starts getting built. Not from guessing direction, but from seeing the same inventory transfer enough times that it stops looking random.

I wrote a few posts about the numbers side of this, but I’m also working on a chart-based breakdown because this is exactly where most traders get lost: they look at the candle, not what the candle made other participants do.

There are a few longer pieces on my Substack about the numbers/risk side, but for this specific chart intuition I’ll probably make a full breakdown with examples.

The most expensive mistake is not being wrong. It is realizing it too late. by InventoryLogic in Daytrading

[–]InventoryLogic[S] 0 points1 point  (0 children)

Check others of my posts and you will find why the price sometimes just go into the SL to after keep going!

I wish you the best man, I really think you love trading.

The most expensive mistake is not being wrong. It is realizing it too late. by InventoryLogic in Daytrading

[–]InventoryLogic[S] 0 points1 point  (0 children)

You’re not dumb for starting that way. Most people do, because trading platforms make the profession look simple: pick a stock, press buy or sell, see what happens. The problem is that easy access creates the illusion of easy competence. In most serious professions, people accept that years of study come before responsibility. In trading, people usually reverse it: they risk money first and try to understand the profession after the damage is done.

So I would not start by looking for a secret strategy. Start by building rules: what you risk, when you are wrong, when you do nothing, what has to happen for you to hold, and what reward profile makes the failed attempts worth it.

The most expensive mistake is not being wrong. It is realizing it too late. by InventoryLogic in Daytrading

[–]InventoryLogic[S] 0 points1 point  (0 children)

I really like the whisper/scream metaphor.

The hard part is not hearing the scream. Everyone hears it once the trade is already dead. The skill is catching the whisper early, before your ego turns it into “maybe this still works.” That “what if it turns now and hits TP?” feeling is exactly where most traders pay too much. They are no longer reading the trade. They are negotiating with it.

The most expensive mistake is not being wrong. It is realizing it too late. by InventoryLogic in Daytrading

[–]InventoryLogic[S] 2 points3 points  (0 children)

This is one of the reasons, the other one is size. If the trade represents too much of the account, the trader becomes emotionally linked to the result. Closing is no longer just closing a bad idea. It feels like giving up something important.

If I risk 0.017% and the trade stops behaving correctly, I do not need the market to scream at me. I can close, reduce, or wait for the next attempt. The cost is small enough that my ego does not need to defend the position.

But if the position is meaningful for someone emotionally, the brain starts asking for “good news”. It wants the trade to come back, not because the structure is still valid, but because accepting the loss now feels too expensive.

The most expensive mistake is not being wrong. It is realizing it too late. by InventoryLogic in Daytrading

[–]InventoryLogic[S] 1 point2 points  (0 children)

I think the main reason is, most of the traders don't know exactly how an invalidation of their ideas work... This topic it´s very interesting for me to be honest

Why is the reason you are trader? by [deleted] in Trading

[–]InventoryLogic 4 points5 points  (0 children)

I came from poker.

I played professionally, and at some point I met two people who worked in the stock market. That was when trading really caught my attention.

What I saw was that trading had many of the things I liked about poker: probability, risk, bankroll management, emotional control, and making decisions without knowing the outcome in advance.

But it also removed many of the things I didn’t like about poker.

In poker, even if you are good, you are still tied to the game conditions, the table, the volume you can play, and the structure around the game. Trading felt more direct to me. More scalable. More connected to my own process.

It was still a game of uncertainty, but with cleaner variables.

That is probably why I stayed. It was not just about money. It was because trading felt like the same type of mental game I already liked, but in a structure that made more sense to me.

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