26 apr

Trading is a Path to Freedom

FROM DR BRETT"S ENHANCING TRADER PERFORMANCE

http://traderfeed.blogspot.com/2010/01/what-it-means-to-be-free.html

"Let us not forget what it means to be a trader. It means that I am free to own property: shares of a private company or contracts in a commodity. I can take delivery of my property and dispose of it as I wish, or I can trade it to others. My decisions are mine to make; I need not follow the dictates of those who would put other interests--those of gods, governments, or guns--above my own. If I lose, it is my loss. If I profit, the gain is mine.




Freedom means that I have a voice. If I like an investment, I can tout it in online bulletin boards and blogs. If I don't like the way the government is managing the economy, I can vote my conscience, not only at the ballot box, but in the marketplace by investing or withdrawing my funds.



But freedom is even more than that. Freedom is the ability to make one's living by one's judgment, and not being limited to subsistence through the toil of his or her hands. Freedom is the ability of a single individual sitting right here, right now, at a personal computer, to write words that can be read years later, in faraway lands. Freedom is downloading reams of market data and conducting research that, just years ago, would have taken weeks to complete. Freedom is the ability to see who is bidding, offering, buying, and selling in global marketplaces. It is the unfettered opportunity to participate in the economic vigor of developing nations.



Without freedom, there is no trading. Trading is a celebration of economic and political freedom. Slaves are traded; they do not trade.



All this freedom, however, is for naught if we, ourselves, are not free. It is the deepest of ironies that we experience greater freedom--far broader potentials--than those who came before us. And yet, in our lives, in our abilities to master ourselves, we are no freer. Amid opportunity, we remain partial; tethered to our conditioning.



What it means to be free is to be able to choose, to live with intention. The free life is one that we guide: a life lived with purpose, direction, and meaning.



Trading, like all great performance activities, is an opportunity to cultivate the intentional life. Pursued properly, it is a path to freedom."



p. 253-254

Chart can be an optical illusion

I remember when I was in school, I look at figures of optical illusions (OI)
OI can fools the eyes.
And things that can fools the eyes, can fools the mind.
When I review my charts, i realised that they are full of optical illusions
Traders needs to be aware of this fact.

As always - Avoid Whipsaws !

Before I forgot

I learned a lot from blogging my trade. The only problem is I always forgot.

I need to remember this.

1) lines 3 touchs (need extra screen)
2) 1 volume indicator
3) 2 chart formats
4) Be familiar with 2 markets as it will give you a power of choice
5) OHLC lines are the battle zones
6) Marobozu considered as confirmed candle
7) Need to play sentimental music during trading
8) Chart can be like an optical illusion

As always - Avoid Whipsaws !

Internet problem

Due to unknown reason, my trading ISP @home said they have some problem.
I write this post from office.
Hopefully it will back to normal.


 

Teleport King

Trade what you see

This is a good phrase for traders.
And it depends a lot on charts

Talking about charts, I have switched to Sierra chart, I've to familiarise myself with it.
At most time the markets are RANGING around. So I will switch to RANGE chart. Common sense is it?.. not ?.
And most of my mistakes during ranging markets simply because I CAN'T SEE the triggers and force my trades.
That will take me back to As, from Xs. I know. But not from Zero..:-)

 For now, I still simming. And yeah my SIM is always green...wonder why....
Sim has value to a trader like me( I used to hate SIM, as I want to be 'real' trader ASAP)
The best part of SIM is NOT about experience...
 .
.


I don't lose money.

Life indicator

The best indicator, in my opinion, is either the market is energetic or lifeless.
In other word, if the market has energy or not.
Only an exp trader can tell if the market conserving energy (small range), expanding energy (trending), or simply no energy (also small range).I cant explain it further, because it cannot be captured by any trading indicator like MACD, RSI...But sometimes it can be captured by ADX. Sometimes.
Some warning. Lifeless markets could affect traders. Be careful.


Positive SIM trades in ZS. Missed SIM trades in CL.
Self-note: Hi Lo lines is helpful. MA period shortened, ADX 35 added with  ADX 20. A Marobozu alert will be include in my chart if it can be done

Previous Support & Resistance line

I always have put previous day S&R lines on my chart, but from now I will put it in pro-active use.

Ref 1)

http://electroniclocal.blogspot.com/2009_10_01_archive.htmlMy trading method is fairly straight forward:
- I usually only trade against one of the support or resistance lines I have drawn on my  chart.
- When price is near one of these lines I look at my chart to see if there is a setup.
- If “Yes”, I look for it to trigger and I fine tune the entry.
- That’s it. From here, it’s managing the trade.

ref 2)
http://www.mytradingedge.net/2010/04/using-key-levels-to-flip-bias.html
Being aware of price relative to previous key levels (see chart insert) makes it easier to recognise changes in trend and flip your direction bia