Your Success Is In Question

I am troubled by your response. It is not from the lack of activity but rather from the lack of your interest. My last post to you dealt with trading psychology and I saw that fewer than average bothered to view it. That really concerns me because psychology is an important key to success.

The purpose if this post is not to send you back to read that post, but rather to caution you about avoiding things that will determine your success or failure. You may or may not have noticed that my posts are not sell pieces but rather an effort to help you understand the path to success. I have already accomplished that goal and I have a constant income to provide for my needs.

My future is not dependent on your purchase of my products. I continue to write new studies that address the constantly changing market environment and I do so more so for my own needs than developing a product to be sold. The selling of the product comes only after it helps me achieve my own personal goals. Others have helped me get to where I am today and now it is my turn to help those seeking it.

Maybe you think you have gotten a handle on this trading business. But if you have already done that, why are you still seeking an answer of how to do it? Did you really think it would be so simple that it would not require some effort on your part? I won’t lie to you. It is not easy, it is hard. If it were so easy then why are so many still struggling to become a successful trader? Why are 80% of those who are in the market unsuccessful? Why is the market place filled with those offering “simple ways to beat the market”? It is because there is always someone looking for an easy way to do a complex task. It does not exist.

I wish I could tell you that by buying the Power Trader you would have immediate success. I cannot tell you that as I would be a fraud. Can it help you? Probably, but not certainly. I can provide you with all the tools at hand, but if you do not use them and use them correctly they will not help you.

I encourage you to be curious and question all things. Even question what I tell you. For in doing so, you will learn what is true and what is false. It is through that questioning you will acquire wisdom of this crazy business of trading. Some of what we know today will not be so tomorrow; some of what we know today will be true forever. It is to the seeker to determine the difference. If my comments cannot stand your review then they are not fit to be published. I am confident I will never lead you astray. Take what you wish, leave behind that in which you do not see value, but never discount it before questioning.

See you on the other side

A Trader’s Psychology

Your “self”, or whatever you want to call it, is so incredibly important in all facets of life and particularly so in trading. Your frame of mind, attitude, focus, and confidence will, not can, but will make a difference in your trading results.

If you do not struggle with theses feelings, then you either have mastered your ability to deal with those feelings or you are a machine. There is no alternative. We are human thus we have human feelings, different in each of us, but yet so similar in a lot of respects, particularly so in trading.

You will see a lot of discussion of things like fear of loss and confidence in your trading abilities and they are, in fact , incredibly important. But today I want to address a topic that lies beneath the obvious churning that goes on in the brain and stomach. Yeah, I know, that is a lot of emotion. OK , so maybe you do not get that worked up.

I confess, I love to trade, perhaps too much. I am not bothered with any of the aforementioned emotions to a point that I cannot deal with them. Thus, my love of trading is one that I need to deal with. You see, if I am not incredibly careful, I find myself over trading. I recall Orson Wells back in the 70’s doing a wine commercial for Paul Masson wines where he states,
” We will sell no wine before its time.” That was a comment that I have taken to heart by paraphrasing it into “I will take no trade before its time”. Perhaps the wine was not that great. but the slogan was priceless.

Sometimes little things make big differences. In my case, that slogan has made a huge difference. Waiting for a signal with everything right about it was the sure answer to successful trades. Knowing when not to trade may be even more important than knowing when to enter a trade. Equally so, knowing when to get out is huge. So I have developed a little routine that I follow and it never fails me when trading the e-minis.

First picking the right time to trade. When I say time I mean time, like the time of day. There are ways to trade market open but it is not just entering when market opens. That can be an equally rewarding as well as a painful experience. Large rewards are most often combined with large risks so one must keep that in mind when entering the highly volatile market open. You cannot get greedy at that time and must be ready to exit at the first signs of a reversal in your fortune. The problem exists; when is that? And that is why I rarely trade market open unless it is a continuation of pre-market trading and rather smooth in comparison to normal market openings. This morning was one of those times and I did extremely well trading three of the indexes.

The time of day between market open and approaching lunch break for wall street generally offers good opportunities to enter trades going both directions. If the market is not highly charged when it opens it will find a time where profit taking happens before the lunch break. When they return you will likely see a similar setup for an hour or so until you see end of day position settlement. Time is critical because plans and intentions are connected with time. Remember price is a reflection of people. People with emotions just like our own. When the herd goes one way so does price, but only until it is no longer a herd mentality and there is where we hope you find yourself. Knowing what to expect might happen is huge because sometimes it actually does. If we are watchful enough we will find we get it right more often than not. And that my friends is the markings of trader.

What about getting out? Through experience I have learned when to take profits and let it go regardless of where it goes. I keep a close eye on the power indicator to tell me when when the fizzle is fading off the champagne and that is where I exit. Sometimes too early, you ask? Never, if I am at profit. Learning to accept an acceptable reward was hard for me, because, well, I was greedy. Guess what, greed is an emotion too and something we need to get a handle on as well. My TW trade manger shows me what the calculated risk is but I am not obligated to accept it. I generally do, but more important I sometimes use that same amount as an exit point. Sometimes I get right back in, but now I have money in the bank and fear no loss. One might say that a 1:1 loss to win ratio is too tight. If I were not diligent in my entry actions that would be so, but with a high winning ratio it is just fine. And who is doing the calculations and what is an acceptable loss? If I follow what I see before me, I will have a high winning ratio. From there on it is about trade management and that is where a lot of folks get burned. Using the tools offered by Tested Wisdom and controlling my emotions, I am pretty much guaranteed a positive return. I may not hit a home run everyday, but if I can just avoid striking out most of the time, I should end up on the bases. Games are won with base hits.

Sorry about the baseball analogy, it just fit so well.

See you on the other side–

TWSRT Part 2

This is the continuation of the “TWSRT with price action”. This video is a discussion of how trade entries are associated with the TWSRT. Here we cover how to use the TWSRT to enter trades and improve your results. We also discuss how to use the TWSRT to determine trade exits.

Using the TWSRT for entering and exiting trades.

TWSRT and Price Acton

This a second video on the TWSRT, however it is a updated explanation of how the TWSRT details price action. It gives you a great deal of information of what price is doing and what one might expect it to do in the near future. The TWSRT is a great addition to any methodology you choose to use to enter or exit your trades. Check it out here and look for a futures follow up video to come including incorporating the TWIndexTrader.

How you can read price action the easy way

Planning Your Trades Before They Occur

The title may sound strange to you, but it is actually something you might want to consider. I know you have heard the expression of “having your ducks in a row”, well that is pretty much what this is about. Only to applies to being prepared by knowing what you need to do before you actually enter the trade. Check the video for more.

Predicting the Future

It has been said that no one knows what price will do and that is true. However, it is entirely possible to know where price might make a change in direction or make a well defined move to indicate continuation of current movement.

This video helps to understand how the TWSRT does just that. It is a bit unconventional, but highly effective in doing what it does.  You can only get it here, no one else has it.

Market Open Trade Tip 1

I have several posts regarding trading the market open. Some address entering a trade and others, more often than not, speak of avoiding trading specific times altogether. Market open is one of those times and here we tell you why.

Also learn about other things to look for that will give you a clue as to what price might do. Check out the video for more info.