Well, I guess it’s time to put it all to work. This experiment is specifically for finding out if a guy like me, who has been an inconsistent, mostly bad trader can, in 40 days, change the way he thinks and by doing that, change the way he trades. I have spent the first half “figuring out” my bad habits, bad thinking, and hard wired reactions. Now it’s time to see if those things can change by replacing them with positive thinking and actions.
I started this out four weeks ago thinking I could trade that moving average cross once a day. That didn’t happen. It didn’t work. And the funny thing is, I was having problems doing it because I knew it didn’t work but I wasn’t willing to admit it. I still wanted to be a “robotic” trader without being able to perform like a robot. There is such a big difference!
One of the greatest things I have learned:
So much time is spent asking traders to trade without emotion, to trade like a robot and just work the system. IF YOU WANT TO TRADE LIKE A ROBOT, CREATE A ROBOT! IT WILL BE A LOT LESS STRESSFUL!
If not, then don’t even attempt to kill Richard Parker, Pi’s “self” in Life with Pi. Learn to live with the Tiger, he is your ally! Control your emotions; the want for money, the desire for the surreal, and the want to be somebody, and then learn how to use who you are and what you know to trade the markets. If you don’t know something, don’t try and hide it with an indicator, learn it. If you want to trade every set up of an indicator, create a robot. Just find peace in it and be honest about what you know, what you can do, and where you want to go.
So, I spent some time this weekend pursuing a theory I have been burying in the back of my head on price action. And I am finding that just being honest about what I know and what I want to know, changes everything.
4hr EURUSD chart
bottom level at 1.3015 seems to be supporting in the short term. Little descending trend line on top. I am sort of “4hr agnostic” at this point. I am using 4hr charts purely to identify longer term trends.
one hour charts are now for price action tells. Like I said, I have found price action rectangles to be my favorite “indicator” I have ever used. It is what I have been looking for from the market on a discretionary basis. On this one hour, price rose sharply, and then it seems to always rest. Sometimes hours, sometimes days. There is a lot of money to be made both in the resting periods and the breakout periods. one hr eurusd is “in the box” and I will be looking to buy the bottom edge. I am undecided as to whether to sell the top edge or just trade with the trend. Dunno yet.
and the 15 min is where I will make trade decisions. Same box as the 1hr but more detail. buyers have come in 3 times at the bottom of the box. There is also sellers coming in earlier and earlier as shown by the descending trend line.
**Trade Idea for Today**
Will be a seller on a break and retest of the bottom side of this box on a 15 min basis. I may dip my toes on the buy side if that trend line on top is broken.
Its time to get to trading. I didn’t go through hell for the last 20 days and let everybody watch not to come out on the other side a much better trader. Lets get some work done!