Tips on the Mental Game

You can probably just skip that last question. I saw something pretty amazing in the SPY this afternoon. Some properly drawn diagonal lines paved the way for a P.T. - gave me almost the exact price and time to exit.

I also saw a top form in ONXX perfectly mid day - I'm thinking the same projecting phenomena should hold true if/when I get the top/bottom calls correct.

Also by using longer TF analysis in the SPY I was expecting this mornings battle. Good stuff.

 

That was a great post RN, traders are indeed not born, they are made, and moreover, they are self made.

 

Now that BD - is good to hear Sir

btw; don't be surprised if you find they work so well you start getting get lulled into a complacency of sorts - don't allow it to happen...

Always use a stop

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Fwiw I’ll answer


Cycles/ waves intrigue me to no end…

I’ve studied a lot of different material.. read several books…. and unfortunately all I’ve concluded is that I am not smart enough to “get it”

Everything I’ve studied gets to a point then simply goes over my head

End result…, I don’t have anything definable, usable, repeatable, or exploitable….

But I ain't dead yet..

RN

 

Thank You Sir

RN

 

RN,

I am trying to wrap my brain around how price bounces between TF's.

Here is what I see: After some type of top or bottom formation, the initial trend either fails or holds.

If it fails, price finds it's way back to the elephant tracks for another potential blast on a different plane.

If it holds, it looks to put in a new high/low that aligns with S/R levels just prior to the lowest low (or highest high)

This move (on a different plane) after the initial trend is where I believe multiple TF's are coming into play. Are there any other variables, such as time, I should be considering to better understand this? Am I not watching the different TF charts close enough to see?

BTW, I've been trying to become a stock guy but I think I am better suited for futures - and perhaps position or swing trading stocks

 

BD


First let me say, trading – is only about making money… It is absolute that we find what fits our personality and supports/ enables us in doing so

So if you’ve found that futures and longer (swing) trading – suits you – PERFECT



I’d trade dirt – if it made me money… and be totally fine with it


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The body of your post covers a couple, of the many – aspects of reading PA/ using multiple TFs


Please allow me to summarize your post into a single question… and respond

Btw if I’ve misstated the question – please say so


Q = Having trouble developing my “eye” for deciphering how various TF interact together, what can I do?


A = It takes time staring at charts to develop an eye for it….

To help, and recalling one of the things I did…. I offer up this drill

Bring up two charts only on your platform– a higher TF, and your trading TF

Say a 30 minute and 5 minute (I picked these TFs as examples only – pick what works for you)


Throughout the day – focus primarily on the 30 min… while on the 5 min using vertical lines to segregate every 6 candles

Essentially you’re focusing on the longer TF candles…. while- noting on your trading TF – how the longer TF candles are being formed…, by using vertical lines on your trading TF to define each 30 minute candle into what it is comprised of in 5 minute segments


While doing the above, pay special attention to the time, and PA – just as the current 30 min candle closes… and a new candle opens…

Do this for the 5 min candles also…, but remember – keep your main focus on the higher TF


See if this helps develop your “eye”


Let’s label this – Aspect #1 – How smaller TF candles build higher TF candles

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I’ll talk about some other aspects of PA/ across TFs if you like Sir

Other wise – why bore ya

RN

 

I meant to ask you this previously, would the TIME you enter (and exit) trades differ based on your TF? So an hourly TF, for instance, would you only place trades near 9:00, 10:00, etc? For a 15 minute, only 8:45, 9:00, 9:15, etc? - assuming the right set up is in place (be it from building on a prior TF, or using the bar's open price for a setup - are quick reverses back thru opening price not ideal?)

In other words, utilize the opening price principle on each trade, each bar (by getting in early/right direction)? That would make life a tad simpler (I could focus on setups that could potentially lead to trend bars, avoid chop, etc)

....I started getting quite a complex 'matrix' going w/ trend lines today visualizing a couple potential paths (got chopped up before the real move happened.

-if the above questions are doable - the opening price principle - trend lines could be for projecting targets rather than predicting price action which is what i began doing)

 

This is how I built context today. Still a bit of a mess. I didn't pretty it up and still lost $$.

A 1-2-3 failure on the longer TF (blue) combined with a short-term TF failure (after the 3rd bounce) sticks out as an easy short after the fact.

I am defining the TF's by the distances between peaks and valleys. (Blue was 'hourly')

Just curious your thoughts...thanks as always my friend

 

Everytime you make a trade, note down why you did it. What you thought would happen vs what happened.

If it was luck, NOTE IT.

If it went against you, figure out why. Any psychological variable will be quickly apparent if it was a factor.

Then, as far as psychology goes, do the EXACT opposite (in terms of emotions) .

Here's how I HAVE ALWAYS LOST money.

On days that I make a handsome profit (I only trade options- rarely an underlying), I get too excited. Wayy tooooo excited. I'm like Scooby Doo, Muttley, etc etc...

So I go ahead and make a trade that I think will do good the same day to make even more and disaster strikes. Greed kills it.

So what do I do? Now, I almost never make trades on days that I close my positions and collect over $1000 ish...

Whenever I collect more than $1000, I DO NOT TRADE that day.

At the very least, I don't enter into credit spreads. NO NO NO. I'll still get into other extremely low risk positions if I really feel confident after much due dilligence (hours).

Thats what I do to control myself.

 

BD

Appears I am going to have to beat you about the head and shoulders (virtually speaking of course)

Think and trade - Big picture in

Keep it simple

Keep it clean

Let price lead... let price tell you

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Going to post 3 charts

1st - Spy overall

2nd Spy - over all, but with focus on yesterday - showing a path to today (use the arrow as a point of reference)


3rd - How my platform layout would look - if I were trading SPY (which I'm not btw)

And if I knew how to post multiple attachments in one post I would..
But I don't