I rarely have time to write my own posts let alone read others. Today one caught my eye so I took the time to read it, and even read the comments.
I was fascinated by two things.
As a marketer, I think his strategy of engaging traders is terrific.
As a coach, however, I have a different opinion about a trader/blogger yelling and ranting at someone, as if they will listen. I have problems making myself listen to the subtle shifts of the market, and my own inner voice. I want to help the next guy or gal, but charity begins at home. I need to help myself first.
That means remaining as unemotional as possible, and seeking objective clues.
Try putting 6 people in the same room and have them all agree on the toppings they are going to put on a pizza.
We all learn by different modalities; some are auditory, some visual, some kinesthetic, etc. Some of us respond well to in-your face yelling, others who wilt under that pressure may respond best to praise rather than intimidation.
I like Eli, so I offer him that insight out of respect, not in a patronizing way. As someone trying to help traders I am faced with that dilemma all the time. We understand our own systems better than the traders we are teaching do, but we don’t really know them. Extreme patience is required, as they haven’t developed the insights yet without enough “experience” seeing the methodology work over time.
[15:53] Janelle _: an amazing system you made, E
I have found working on ourselves, not the market, is more helpful.
It takes time and hard work to make progress; anything of value usually does.
I post tweets not to show my brilliance, but to share ideas with other traders who are kind enough to do the same. I presume no one is silly enough to take my trades, especially if they are already well underway or those traders don’t know my system.
The second thing that caught my eye was how some traders think individual traders have no edge because of commissions.
Walmart here I come, or maybe flip burgers at the local Burger King if that’s my mindset.
This is not sot say that trading is easy; it is in fact one of the hardest businesses I have ever seen. Danger and Pitfalls abound. It takes time to learn how to find high quality trades with low risk. Zeek and I agreed that today was one such day without a lot of good opportunities for conservative traders.
Walking through today’s charts will give some idea into the complexity of simplicity. I prefer the reverse concept; find simplicity in complexity, and both are valid ideas.
Mandelbrot understood that.
I chose to start the team with expecting the half gap area 97.5 as resistance. Maybe you were aggressive, maybe not.
Then the test became try to break down 92/91 as an objective for shorts.
Someone wanted 84 as a target. Some one wanted 1415 for longs.
We need to get by the 89.5 target after the 92 area. Simple.
Day traders are becoming position traders to get to our targets.
[13:22] E: “I have no clue” why market is so sluggish today.
[13:23] E: Working off OB through time rather than price
Month end bias vs overbought. Almost every day has a thesis, and the cup is usually half full or half empty.
[10:30] E: i am neutral
[10:30] E: i think we test for support this am
[10:30] E: and then bounce
I thought we may have a mirror day of Friday. We did, the colored rectangles I used to show that concept. Simple idea, complex in executing the trades.
Why? Throw in a Chicago PMI Report at 9:45 with members getting it at 9:42.
Then a non existent lunch move, then continuation but really no zip; an apathetic move lower. Volume and tics said so.
The divergences we noticed in volume also spoke to us. More complexity.
The simple premise worked, but it was hard work staying focused and disciplined. Catching pieces of the move help, rather than thinking home runs.
Singles and doubles and bunch ‘em up is how we score runs. On base percentage changed the rules of the game, right? Opportunities, even if scratched, are still opportunities. Try scoring with both feet in the dugout and warming the bench.
Some risk capital is required if we are going to play this game.
All we can do is take trades, decide if they are worth taking, and accept stop outs when we are wrong, profits when we are right.
Get in the right neighborhood, use a stop if we are on the wrong street.