06-20-11 05:37 PM If you read BF or BS on the home page of Behavioral Finance you get a succinct look at some trader hazards out there. Beginning traders also have to deal with small accounts and how losing affects the capital in those accounts. emotions can run high from either perspective. Some real 'tells on this are expressed in this thread. One person cannot deal with the deserved opportunity to trade more contracts that progits have earned her the right to trade. another person posts charts of trades that use almost no part of the trading opportunity and, to boot, they are poor trading entries on his sparsely annotated chart. Fear is their common bond. BF states the trader causes and emotiions control as well. The fear is focused on money and NOT on acquiring skills or knowledge. Skills and knowledge IS the antidote for fear it turns out. Finding this out tacks alot of observayional time while working systematically with other learning traders. You can take their word for it. There is little fear associated with learning. The fear has much to do with not having the experience of being wealthy. The same applies to problem solving when there is only a small budget to solve a large problem. The solution to handling fear is to develop a routine that you can believe in. The one caveat is that the routine be absolutely risk free. PA trading does not have a risk free routine built into it. Why not? The reason is this: A simple repeated process has to be used. PA embodies an up/down orientation where horizontal lines are deployed. None of the lines work. There is only one horizontal line in trading that always 100% of the time always works. this line is the line that proves to the potential trader just when a parallelogram has failed to complete. What is all traders could begin to learn with only a few tools and they could always counton those tools? This does happen for many trading approaches and they all have this common characteristic. It is a trend following characteristic which is a leading characteristic. by using this one line you get to always know when a trend is going along or when it is about to fail. this converts trend following which doesn't work to trend monitoring and analysis which foes work all the time. the trafer's goal is to always "know that he knows". Using the bookmark on the FTT is where the begining of the end of fear happens 06-20-11 05:50 PM where is the POWER in using a horizontal line to monitor and anlyze a market? The bookmark is the dividing line for whether the slope of a trend has failed or whether it is continuing. Lets say you do not know how to annotate but you may be willing to recognize that always "knowing that you know" is a DEFINITE TRADING ASSET. One person recently posted that an entry and an exit are identical but opposite. This first sentence of a post was immediately rejected and called into doubt (probably out of fear of facing a new market reality type idea). When the greenline is used at the point where two trends begin to overlap it is a powerful tool. It deals with point 3 of the parallelogram just the way "clean page 4" deals with point 2 of a parallelogram. Taken together both rules always give the monitoring and analizing type trader full confident inthier trading approach. fear is not in the picture as a consequence. What this thread is about is the fear in the hearts of most posters in the thread. So I am taking this commonist element of learners and dealing with it head on with VERY POWERFUL tools that always work and NEVER fail to work. Fear and anxiety need not be part of any trader's emotional set. 06-20-11 06:02 PM Take one more look at the greenbook mark stemming from each FTT where the trend overlap begins. Savor its POWER to help you not fear what you do not understand. read the BF piece named BF or BS; get used to the idea that you have personal failings called over reaction and under reaction and irratioinality. fear is the 'tell that you use to make reasonable changes in your approach
06-20-11 06:11 PM Quote from jack hershey: Take one more look at the greenbook mark stemming from each FTT where the trend overlap begins. Savor its POWER to help you not fear what you do not understand. read the BF piece named BF or BS; get used to the idea that you have personal failings called over reaction and under reaction and irratioinality. fear is the 'tell that you use to make reasonable changes in your approach. Rule 5 of the rule seT tells the trader WHAT to do when the green line is violated. His job right then and there is to RETURN TOTHE CORRECT SIDE OF THE MARKET, There is no taking of profits on this trade and it is more important than taking profits. The price moves (two) are just being folded back intothe last move of the prior trend. It is all that simple to understand and make part of your knowledge and skills. Can you read this? Can you copy and hi lite it? I do notthink most people can. they have too much uncertainty and fear to not over react and NOT keep this post in their collection of facts about the reality of markets.
The parallelogram makes three moves as it goes from beginning to end. at some poiint most trafers think through the principle that the market is a fractal oriented structure. They may also catch on the the fact that the slope of the parallelogram is a binary vector: that is it is either long or short and that it has a magnitude called a velocity.(the first derivative with respect to time). this all means that a trader can move up in the world by trading point to point instead of just FTT to FTT. In fact it IS still the same except the ftt to ftt is lower case and three times more frequent and a lot more money is mafe. The bookmarks also migrate to the ftt level on this faster trading fractal. Some people switch off the 5 minute chart in trading a PA style. They have explained why. some PA traders stick to the 60 minute chart. they all have the same reason: FEAR. dealing with fear CAN be done by acquiring knowlefge and skills. Here in ET you get to see spurt chat with Murrey R. because spurt wants to know more about how multichart trading works. Lets wish him luck in his new quest. Once a trader becomes aware of the slope of the parallelogram, he does begin to orient to the sides of the parallelogram and finds that he is gradually facingthe REALITY that markets are more left/right than up/fown. The green bookmark is NOT an up down division it is a slope division and the slope is related to the sentiment of the market as measured in long and short trems. All money making is done by taking trades on the correct side of the market and the trade is always in a parallelogram. The end of the parallelogram is where you place the bookmark to tell you, AT THE VERY BEGINNING OF THE NEXT TRADE, what slope to have on the next trade. The exit is the entry Event wise) and it is opposite your last trade's profit taking sentiment. when you take this new trade you are looking for point 2 and then point 3 and then the end of the trade at the FTT or the ftt depending upon the speed of the fractal you are trading. I did a boot camp once. Printed it was 1938 pages long. can you imagine a person taking 1936 pages to become a skilled trader with full knowledfe of how markets work.
Quote from jack hershey: This thread is not an important thread. Even the OP has left the thread. Mostly this thread discusses missed trades and mistakes made. The OP, you and several others have asked me not to post. It there a reason for these people's fixation. It is a common enough one. I do have a rather large global audience. One of the things they enjoy is seeing me post with respect to any market anytime that market has liquidity. I noted that mostly all posters in this thread cannot annotate by simply providing the more correct tradable monitoring and analysis. Those in my audience find this to be reinforcing. as you saw I posted several progressive charts and their 8 steps for trading any market right from the time a potential traderbegins to learn. This is the proverbial "one pager" people hope to find. It is attached for your review and comments. If you think you can find any errors or ommissions, I will straighten you out promptly. The market speaks a language. Calling the end of a trend the Failure to Traverse is a natural notation for me. I spellout bookmark since it is so appealing to speak of. a lot of other terms are also spelled out. dvxxxx uses rail for the Left Trend Line. I see the LTL as the side of the parallelogram that causes acceleration of the velocity of the slope of the Right trend Line. I call this a parallelogram Volatility Expansiion. Again it all seems to be such a natural vocabulary for me and for all my audience. A slow down of slope is "fanning" to me. Fanning only happens when the internals (the yellow and blue boxes we had put on Trade Navigator to make reading the market much easier). I really like the idea of just 8 rules for taking all the market offers on any market with sufficient liquidity. I certainly recognize that demonstrating making three times the range of the chart is "unbelieveable" To posters on ET. It will always be that way. The offer is made by the markets; everyone can see it and it is still unbelievable to take that market's offer day after day. The SEC couldn't believe it either......LOL.... They had to be instructed in how it was done fairly. They finally concluded, wrongly, that I could not know so many people in such diverse locations to be doing what they saw me do for all those accounts I had POA's for. ET is the same way as the employees at SEC. Finally, one of them married a social acquaintence of mine (Henry Cooper's sis) so we got to golf and ski together in Cooperstown. (Bill Carey)
Hi, could you explain bridges or straddles the RTL ? (I'm not a native english speaker, so the true meaning of these words escape me. -- thanks, innersky
In order to trade Jack's method, I need to annotate 3 fractals (the faster fractral, the trading fractal and the slower fractal). Referring to the above attachment "the 8 basic rules for annotating and doing analysis to stay in the market all the time.doc", do I only apply basic rules 2-8 to trading fractal? or I have to apply all basic rules to 3 fractals? TIA.
Jack is a visual person, bridge = price goes in horizontal movement from one side to the other side, hence 'bridge'. straddle = going back and forth above and below of a trend line like you have a straddle sitting on a horse now you have prices sitting on a trend line. its a visual thing.
apply it to all 3 fractals and find out, my guess is at smaller fractal it won't make any difference.