Keeping things simple and focused is essential for great trading. One way we do that is we have a series of foundational concepts or questions we teach and use in various aspects of trading.

One of those core concepts you’ll often hear me reference in Livestreams or trade assessments is 2S or TD2S. This stands for the 2 questions you should be answering to when in a trade to ensure you’re reading the chart correctly.

These 2 questions focus your mind so that you’re not just assessing but you’re actually predicting price action and reaction zones.

The 2S Questions

These 2 questions are really opposite of each other:

  • What should happen?
  • What shouldn’t happen?

It’s that simple.

This article isn’t to go into how to apply these questions. That is for other sections in the trade management and places like the pattern library.

I will leave you with this.

When applying these questions you’re looking at the charts or the 4-Chart setup and asking…

What should happen in order for this trade to unfold on how the system projects?

What shouldn’t happen?

Enough things that shouldn’t happen means you reduce your risk or you get out of the trade all together, or with a system like ours, where we try to be “always in” you might reverse position.

And upon this reversal you then start over and begin to asking and answering the 2S as price action unfolds.