Monday, February 12, 2007
Saturday, February 10, 2007
All gambling games have specified beginnings, middles, and
endings, based on a sequence of events that determine the outcome
of the game. Once you decide you are going to participate, you can't
change your mind—you're in for the duration. That's not true of trading.
In trading, prices are in constant motion, nothing begins until
you decide it should, it lasts as long as you want, and it doesn't enduntil you want it to be over.
endings, based on a sequence of events that determine the outcome
of the game. Once you decide you are going to participate, you can't
change your mind—you're in for the duration. That's not true of trading.
In trading, prices are in constant motion, nothing begins until
you decide it should, it lasts as long as you want, and it doesn't enduntil you want it to be over.
Sunday, February 04, 2007
Useful Douglas
"Most of the structure in our minds was given to us as a result of
our social upbringing and based on choices made by other people. In
other words, it was instilled in our minds, but did not originate in our
minds. This is a very important distinction. In the process of instilling
structure, many of our natural impulses to move, express, and
learn about the nature of our existence through our own direct experience
were denied. Many of these denied impulses were never reconciled
and still exist inside of us as frustration, anger,
disappointment, guilt, or even hatred. The accumulation of these
negative feelings acts as a force inside our mental environment causing
us to resist anything that denies us the freedom to do and bewhatever we want, when we want."
our social upbringing and based on choices made by other people. In
other words, it was instilled in our minds, but did not originate in our
minds. This is a very important distinction. In the process of instilling
structure, many of our natural impulses to move, express, and
learn about the nature of our existence through our own direct experience
were denied. Many of these denied impulses were never reconciled
and still exist inside of us as frustration, anger,
disappointment, guilt, or even hatred. The accumulation of these
negative feelings acts as a force inside our mental environment causing
us to resist anything that denies us the freedom to do and bewhatever we want, when we want."
Monday, January 29, 2007
Gambling
Even gambling games have built-in structures that make them
much different from trading, and a lot less dangerous. For example,
if we decide to play blackjack, the first thing we have to do is decide
how much we are going to wager or risk. This is a choice we are
forced to make by the rules of the game. If we don't make the choice,
we don't get to play.
In trading, no one (except yourself) is going to force you to
decide in advance what your risk is. In fact, what we have is a limitless
environment, where virtually anything can happen at any moment andonly the consistent winners define their risk in advance
much different from trading, and a lot less dangerous. For example,
if we decide to play blackjack, the first thing we have to do is decide
how much we are going to wager or risk. This is a choice we are
forced to make by the rules of the game. If we don't make the choice,
we don't get to play.
In trading, no one (except yourself) is going to force you to
decide in advance what your risk is. In fact, what we have is a limitless
environment, where virtually anything can happen at any moment andonly the consistent winners define their risk in advance
Sunday, January 21, 2007
Tuesday, January 16, 2007
Market's structure
This structure has to exist within each
of us, because unlike society, the market doesn't provide it.
The markets provide structure in the form of behavior patterns
that indicate when an opportunity to buy or sell exists. But that'swhere the structure ends—with a simple indication.
of us, because unlike society, the market doesn't provide it.
The markets provide structure in the form of behavior patterns
that indicate when an opportunity to buy or sell exists. But that'swhere the structure ends—with a simple indication.
Sunday, January 14, 2007
One of the greatest post I've ever seen...
Credits to Mike-pdt,
" Glad Bruce clarified that, seemed to me he's very methodical. I don't see discretional trading as whimsical but with familiarity, complexity becomes simply recognized. I notice 3 pushes where some see a 5 wave, that might not be part of a written plan but it's still good to notice.If I don't strive for science then afterward I don't know what happened, rather it was good or bad nothing can be learned from it. Of course it's not science like a holy grail algorithm, that would require a most awesome computer. Fortunately we have one, unfortunately it takes years to get it programmed. There will never be a better pattern recognition processor than our gray matter.They say it takes about 10 years to 'master' anything. Surgeons, sports pros, traders whatever, some debate over musical child prodigies, but in general 10 years, with an apex at 20 to 30 years. "
" Glad Bruce clarified that, seemed to me he's very methodical. I don't see discretional trading as whimsical but with familiarity, complexity becomes simply recognized. I notice 3 pushes where some see a 5 wave, that might not be part of a written plan but it's still good to notice.If I don't strive for science then afterward I don't know what happened, rather it was good or bad nothing can be learned from it. Of course it's not science like a holy grail algorithm, that would require a most awesome computer. Fortunately we have one, unfortunately it takes years to get it programmed. There will never be a better pattern recognition processor than our gray matter.They say it takes about 10 years to 'master' anything. Surgeons, sports pros, traders whatever, some debate over musical child prodigies, but in general 10 years, with an apex at 20 to 30 years. "
Saturday, January 13, 2007
Monday, January 08, 2007
Don't trade the news?
"news is exellent stuff to trade , before I was mentored by the “Monkeyman “ I was always taught don’t trade the news , but the Monkeyman said whaaaaat ? ??? he will take a break and say Bruce I will be back at a time for the news , he takes breaks but wants to be at the screens for the news to trade it IF there is opportunity "
Saturday, January 06, 2007
The Safeguards
To operate effectively in the trading environment, we need rules and
boundaries to guide our behavior. It is a simple fact of trading that
the potential exists to do enormous damage to ourselves—damage
that can be way out of proportion to what we may think is possible.
There are many kinds of trades in which the risk of loss is unlimited.
To prevent the possibility of exposing ourselves to damage, we need
to create an internal structure in the form of specialized mental discipline
and a perspective that guides our behavior so that we alwaysact in our own best interests.
boundaries to guide our behavior. It is a simple fact of trading that
the potential exists to do enormous damage to ourselves—damage
that can be way out of proportion to what we may think is possible.
There are many kinds of trades in which the risk of loss is unlimited.
To prevent the possibility of exposing ourselves to damage, we need
to create an internal structure in the form of specialized mental discipline
and a perspective that guides our behavior so that we alwaysact in our own best interests.
Sunday, December 31, 2006
Mike Davis says:
For most of us, this is the eternal struggle trying to define a reversal or correction. You get some help with the rule of alternation as quite often, if 2 is simple, 4 is complex or visa versa. At least that is what a lot of the wave people think.
For most of us, this is the eternal struggle trying to define a reversal or correction. You get some help with the rule of alternation as quite often, if 2 is simple, 4 is complex or visa versa. At least that is what a lot of the wave people think.
The Measured moves happen a lot but as you point out, differ in outcomes. The only thing that might help you realize what is happening in the first wave down is the count and pattern of the previous move up.
With the waves, there is always an alternate count lurking around. I try not to get too stuck on the wave counts and hope that the win/loss percentage helps pick it up.
Saturday, December 30, 2006
Tuesday, December 26, 2006
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