SZ or DZ with long wicks

Tip :

- Zoom down to LTF at the wicky areas..

Adv

1. Instead of putting trade at proximal line at HTF SZ or DZ,  you have better trade

(Rem :usually long wicks SDZ. . Price have tendency to go deeper into SDZ zone to reach  the wick)

2. Higher WoW probability trade at LTF. . HTF WoW may miss and LTF  WoW higher chance to trade

How Weekly CP DZ win Daily reversal SZ

Notes

1. Weekly CP DZ in control. . A strong fresh and original with good base and good departure

>> remember weekly still up because no demand zone has been taken out (bullish consolidation )

2. Monthly also up (bullish consolidation)

3. Monthly reacting bullish on a flip zone

4. Clean and strong arrival to weekly zone  ( hence odds enhancer that weekly DZ will rebound high)

5. Confirmed by strong bullish engulfing after reacting to weekly CP DZ  

6. Daily overextended  and rather compressed with a lot of wicks 

7. Weekly also overextended ending into a strong and fresh DZ. .hmm.. think of spring effect. .. rebound fast?

*** Listen to Hugh sharing  - " it's been one week and I been so bored only one trade.. I know I am breaking the rule but I just wanna short it when I am not allowed. . I have found a lot of reason to justify my wrongdoing (e.g. I found a confluence of weekly Ema 20 etc. .)

Bull and Bear traps

E.g of bull trap (and very bad WoW trade). Daily dropping to extreme demand zone.. long opportunity here?

But

1. Monthly SZ in control
2. Weekly SZ in control
3. Daily DZ nested not in weekly DZ
4. Worst.. Daily DZ is part of a long weekly candle wick that gets liquidity  from the weekly DZ 

(Note : this so called "extreme DZ" is not found in weekly nested DZ but part of the top part of the weekly candle wick)

Hence. .v likely bull trap..

-------------

2. See the CP  Supply zone tested many times. . Finally broke with a gap up but there is a bigger demon  waiting.. fresh and original  extreme daily supply and and extreme not tested WICK and area of weekly SZ supported by monthly SZ. . Hence the bull trap

Good e.g. of WoW trades

1. Monthly in control (wick hit)

2. Weekly WoW

3. Daily WoW nested in weekly

4. Optional : look for H4 entries

E.g. of Failed SD trades

Good example of poor WoW even follow the rules..

Reasons why Short failed at daily even follow rules?

And : reflect and read the price action!  Ask what is against me?

1. Monthly up

2. Weekly SZ by very wicky  candles

3. Weekly up.. EMA 20 in control
   No weekly demand zone removed..

4. Daily.. CP demand formed. . Reduce risk reward

5. Monthly CP DZ in control

Optimism key points (hidden stuff)

If I think deeper. .

1. Take note CAGR more than 12 percent..

E.g. Sino grandness is 42 percent!.. OSIM , ezion

2. Look for GIANT  .. by FA and Optimism

2 a.  Wait for giant to "fall down"
2 b.  When to "support" the Giant?

3. Financial crisis?

  3 a.  Stock near 100%
  3 b. property near 100%
3. C. Commodity near 100%

4. Don't just see index. .like Dow Jones or S&P .. near historical high..

^^ remember that there is inflation. . So naturally the index should go up!

5. Key for optimism.. need to go through 2007/2008!

HTF - if the HTF is bad.. all the LTF is bad!

E.g. if weekly SZ in control. . All the DZ in LTF is bad...

Note : E. G. weekly  SZ in control, reach a daily area of flip zone.. that is not a reason to long as there is no DZ..

We are SD traders and we strictly only trade on SD levels.. no level no trade even though there can be super reversal or  continuation candlestick of super support or resistance  line. .

Rem.. the key of SD traders is to trade with the institution. .

Divergence trader tips for SD

1. Use 1 hour intra charts for entry

2. Use divergence at major supply and demand zones

Key for Jeff Sun

1. Scanning is only first part...

2. The 2nd part and one of the key is his buy stop and sell stop.

E.g. although i sxan and find 41 bullish reversal scan.. and yesterday DJI drop 300 points ..

However all my longs are not executed because of the buy stop. Whereas my sell stop orders are executed.

3. the next key is using stop loss using ATR

Pre CP - Supply and Demand

Price action examples

1. Monthly chart.. all time high with fake breakout

2. Weekly.. strong resistance as candles can't close above.  Also see there is a harami and later a bearish engulfing

Harmonic trading essentials

Essential slides

CP continuation patterns trading

1. The higher we are on the curve, the smaller probability of CP patterns success

I.e. too high on the curve don't trade CP patterns

2. CP patterns are good at

2 a.  Beginning of the trend
2 b. Reversal of the trend
2 c. Break of a trendline

Trading = Probablity, Many traders make huge profits during a bull run, but lose everything and more when the market corrects (Robin Ho)

In the last few slides, Robin covered the essentials of trading. Things like:

[important]

• Trading is all about probability.
• Never ever work against the trend.
• There is no holy grail and secret formula to help you reap big profits in trading.
• Many traders make huge profits during a bull run, but lose everything and more when the market corrects.

http://www.martinlee.sg/my-visit-to-robin-hos-futures-trading-course-preview/

SD - good e.g. of compressed demand can go short

1. Demand going up compressed

2. Supply zone reached. .

3. Hit monthly supply zone (see 2nd pic)

False break

http://2ndskiesforex.com/forex-trading-strategies/forex-strategies/price-action-forex-trading-climax-exhaustion-reversal-bars/#

False break - bearish

http://cdn.2ndskiesforex.com/wp-content/uploads/2014/11/usdchf1.png


Robin Ho - Trading against the breakout

He doesn’t like to trade on the breakout, as the majority of breakouts tend to fail. Rather, he will see the opposite trade as a good probability trade once he sees signs of the breakout failing.

Good example of valid and non valid supply and demand zones

The strongest type of Supply and Demand trade

1. This daily demand is nested in a weekly and demand zone

2. The monthly is up..

> hence this is a momentum plus location type of trade

3. Also the demand zone is formed with GAPS. . Which signify big imbalances

Truth of the market - what goes high goes higher! !!

E.g.

- Dow Jones, S&P  : 2009 till now

- Alibaba ( I kana big time)

--------
My fucking challenge

I keep thinking at historical high.. the price will go down sooner or later..got a lot of "space" to go down..

But the reality is... what goes high goes higher !!!

(Robin Ho wisdom)

Dr Tee special project

Agenda for first update

1. Scope
2. Talk abt multi scale optimism teams assignment
3. Ask all to share their charts with us also
4.plan to collate and start studying on Jan
5. TA team scope
6. Q&A and more importantly get suggestions and feedback

City index lesson 1

Sideway market

- market waiting to happen. . To a trend

-----
3 key tenets of Wycoff market cycle

1. Time
2. Price action
3. Volume

2007 drop

1. Accumulation - 2008-2009

** usually insider buying happen

2. Markup - 2009 till now

** here I can buy on retracement and support

3. Distribution - 2015?

Topping process. . Usually 1 to 3 months

4. Markdown -

----
Breakout strategies

1. Must have prolonged compression first.. cauz likely more explosive

----
**** business of trading = managing risk!!!! Manage risk must always always come first!!!!!!!

----
Average True range.. highest price and lowest price..average out. .

This ATR help me to see the trading range.. can help me see volatility..

And then later I can use this volatility to set my stop loss

Post to my supply and demand learning

Pic 1 - failed supply zone. . Due to big timeframe demand area..hence demand in control and this left supply zone is low odds

My Trading business

3 C s framework

A viable biz is abt creating, communicating and capturing value

1. Creating
- create net value for customers (user benefits exceed user cost)

2. Communication

- it is not what I think.. it is what my potential customers think!!!!

- how can I reach and convince what my solution is value for my potential customers or partners to become my actual customer and partner?

3. Capturing value
- capturing net surplus from the value created against other customers..

------

1. Identify my potential customer pain..

2. Is my product a painkiller? I can immediately solve her problem...

Vs vitamin. . V slow effect..hard to sell

----
Do Porter 5 forces to analyze my situation and competitors

-------
Dear All,

  Split to 3 teams now

1. Multiple optimism study

2. Optimism scanning

3. TA scanning

4. FA scanning

Recognising my mistakes

George Soro : I am only rich because I am aware and I realize my mistakes!

Supply and Demand Benny

In SD.. we are looking for key imbalances..

Not just normal imbalances

If we sell at supply..we buy at demand

-----

If there is a very big cheong up. . Who can cause this? Only the big players..

Vs a Normal rise and retrace. .. small imbalances. .

Professionals. . Trade hundred of lots which are millions of dollars vs retail traders. .

.. now just 2 ERC candles can push the price down already.. vs previously usually need 10 candles etc..

------
Support and resistance may be same as supply and demand.. but they are different rules. .

In SD.. we look at buyer and seller key imbalances. .

However looking for key imbalances is just the first step! ..  there are many other rules and considerations. .

----

Tip : For beginners.. just take 1:3.. do not be greedy..

Swing trades. . SD trades can last days and weeks..

----

Risk - 1 percent rule..  if I follow strictly this 1 percent rule.. I will never be bankrupt and lose my account

-------

Use driving car as analogy

1. Learn theory

2. Practice basics

3. In circuit

4. In road

5. Pass exam..

But does that mean I am a very good driver liao??? Will I be able to avoid accidents? ??

I need to keep driving day by day and clock hours to gain my experience! 

Attending a workshop is not enough..

--

Use buying and selling a property as E. G. .. say I want to sell a property at 1 million.. suddenly price drop to 500k. . I miss it even I keep reducing my price. . 900 k, 800 k...

So when price come back.. will you be likely to sell?

Another analogy... like chopping a tree at the same spot.. first time you try to hack the tree..the tree won't fall.. but if you keep chopping at the tree.. the more bark I remove.. then weaker.. easier for tree to and higher chance for tree to fall. .

-----

Hence. .. SD is different from traditional support and resistance.. see below. .

We want to trade the first time..the first chance..

-------

Gap.. gap as key imbalances. . Remember Steve nison say gap is the strongest support and resistance..

Why are there gaps?  When the market is close. .retail traders can't trade. . But institution and market makers can make the trades. .

Hence..say when there is a news.. the gap occur..and cause the greatest imbalances. ..

----

Put a pic. .

Me versus the super big guys

Me versus a pack of wolves eating meat..

-------

In SD.. we need to know the market turning point in advance! 

------

Why do we want to set and forget and not wait for confirmation? 

Reason is to.sell or buy the highest.. hence I can have the risk reward 1:3 the highest..

------

Key for synergy : each team member or student need to specialize on one currency pair because the behaviour is different

----

Team viewer and any meeting (free webinar tools)

----

News

Trading with bigger timeframe.. can avoid most news except non farm payroll,  FOMC or other interest related news

------

Backtesting is critical!!!..

1. Because we need the confidence to set and forget and not wait for confirmation. .

2. Learn the currency behaviour

3. Build intuition to know if the supply or demand level is high or low probability

4. Slowly build up my winning rate and percentage

Trading like a Robot, Investing like Zhugeliang

Trading (Put Robot pic)

-Supply & Demand

-Harmonic Patterns

-Candlestick and Chart patterns (Reversal)

-Cut Loss at 2% max of money

-Journalling and FOLLOW RULES disclipine

- TP levels (Exit)

Investing (Put Zhugeliang)

Entry

-+ve long term CAGR

-Long term Optimism less than 25%

-Tail (short term rebound confirmation)

-Fibonacci

-Volume OBV

-Candlestick reversal/Continuation

Exit

-LT Optimism 50%

-RSI oversold

-Candlestick reversal

A Good Trader (Print out)

•Trading is about 60% psychology, 30% money management and 10% technical or strategy

•Do not let your emotions, fear and greed take control of you

•Be patient to wait for the right signals

•Be discipline to follow the rules or system that you set up

•Learn to do your own analysis on the chart and do a lot of practice to build up your confidence

•Take care of your downside and let the upside take care on its own

•To be a successful trader always follow the rules

Goal : Making the most money using the least possible effort exposing ourselves to the smallest amount of risk and making the money in the shortest possible time

Success in Trading in Forex = Money earned / (Amt of effort * Risk * Time)

(Think deeply abt above formula what it means and therefore i Know the importance of

1. System,  2. Trading like a robot (mechancially) 3. Ignore market - set and forget , 4. Swing/Position trading, 5. Disclipine

Article from BigFatPurse - http://www.bigfatpurse.com/2014/10/what-catherine-pichotta-and-game-theory-taught-me-about-investing-2/

Avinash Dixit and Barry Nalebuff are professors of economics at Princeton and Yale respectively. They specialize in Game Theory. In 1991 they co-authored a best seller called Thinking Strategically and their second book The Art of Strategy: A Game Theorist Guide to Success in Business and Life is an extension of the previous.

Dixit and Nalebuff defines game theory as

Rigorous strategic thinking, the art of anticipating your opponents next moves, knowing full well that your rival is trying to do the same to you

The Prisoner’s Dilemma

The most famous instance of game theory is the prisoner’s dilemma where two prisoners are kept captive in isolation. The police does not have enough evidence to convict, and would require the cooperation of at least one prisoner. If both confess, they would end up with a standard sentence, say 2 years in prison. If both refuse to admit to the crime, they both get off with at most a fine.

At this stage it would seem sensible for both to deny vehemently their involvement. But if the police could get one to co-operate with them and confess, they would have sufficient evidence to find the non coorporative prisoner guilty and send him to jail for a long time. Hence, being the first to confess might be the safer option. The dilemma lies in both prisoners wanting to protect their own interest and in the process, actually compromising it.

The Prisoners’ Dilemma is but one example of game theory scenarios. There are many others. In fact, we are all game theorist in our everyday life. We play mahjong and try to double guess what our opponents’ tiles are. We go to meetings anticipating our bosses questions and objections. We sit for exams, and try to spot the questions that might show up and choose to concentrate our efforts on them. We buy an air ticket online because we think it is cheap and the price will not go lower. We are gaming against our mahjong kakis, our bosses, the examination board, the airlines and businesses.

Sometimes we are successful and come out ahead. Other times we are not so successful and end up being gamed instead.

The Art of Strategy

The Art of Strategy is laden with real life incidents. The authors uses examples from pop culture, art, sports, politics and business to illustrate how almost every human and business interaction has a game theory component to it.

The authors also shared many little nuggets of personal experience throughout their teaching and consulting careers, one of which is as follows.

Before the book was published, co author Barry Nalebuff distributed copies to his undergraduate game theory class in Yale and announced that for every mistake or typo the students identified, they would get a two dollar reward. The only catch being you would have to be the first to spot the error.

The intention was twofold. On one hand, his students would read the text cover to cover. On the other he could eliminate most mistakes before the book goes to press.

The person who ended up as the big winner was a lady called Catherine Pichotta. She did not find the most number of mistakes, there were others who were more prolific. Yet she walked away with the most money. How did that happen? Simply because unlike every other student, she thought ahead and decided to employ one killer strategy.

She started from the back of the book.

I was blown away when I read about it. It was elegant. It was easy. And it was such a simple solution right under the noses of everyone yet no one saw it. Catherine Pichotta not only won the game. She aced it totally.

Aceing the investment game.

As investors, we play the money game. We want to make the most money.

To ace the game, we would do very well to take a leaf out of Catherine’s book. Here is what I learnt from her.

Acting Against the crowd

Acting with the crowd is comfortable. It is fun to compete with everyone and see who can read faster and spot mistakes and typos others have missed. It is fun and safe to buy the same stocks that all your family and friends are buying. Or to purchase the investment property when all your neighbours are upgrading.

On the other hand, acting against the crowd is uncomfortable. Especially when it comes to investing, it requires tremendous courage and perseverance.

It is a well known adage that 90% of investors lose money. The crowd loses money. If you want to win the money game, do not do what everyone is doing. Act against the crowd.

Seeing through distractions

Many an eager Yale undergraduate in Barry Nalebuff’s class would have jumped into the book straight away. They wanted to be the first to spot errors. The faster you start the more errors you can spot before others get to it.

They were not wrong actually. It is a sound strategy. But is it the best strategy? Catherine saw through it all. She realized that speed is but a distraction. It is merely to throw people off the track. The emphasis on speed prevents people from stepping back and thinking clearly. They were blinded by the need to act, to do something.

And no other group of people in the world is as distracted by investors. We are bombarded by news, influenced by gurus and analysts gunning for our attention. We are ring fenced by analysts hawking their shares, fund managers peddling their funds.

We get jittery when we hear about stocks correcting in the US and feel compelled to act. A possible interest rate rise sends us scurrying. Potential mergers, buy overs, hot stocks, sexy stories.

Distractions. All of them distractions. They compel us to act, often in a manner detrimental to our investing fortunes. The sooner we learn how to see past it, the sooner we will be able to ace the game of money.

Understanding the game.

Finally, Catherine Pichotta understood the game. She saw that winning the game is not about finding the most typos. She goes beyond that. She went up a notch. She saw that winning the game is about finding the most typos that others have yet to find.

The ability to understand the game is crucial. If we as investors do not understand the game, we are simply going around in circles. And here I will define the big picture for you. The big picture is this – The big picture is not about making the most money.

Let me repeat myself again. The big picture is not about making the most money.

The big picture is about making the most money using the least possible effort exposing ourselves to the smallest amount of risk and making the money in the shortest possible time.

If you are only thinking about making the most amount of money, you are like the blind man grasping at the elephant’s tail and thinking that the elephant is long and thin. It is hardly a true representation of the elephant.

Put the other components into the game and you can see how the big picture changes. Would you employ a risky strategy that can potentially double (most money) or wipe out your capital or would you go for one that will give you 50 percent returns with a 20 percent downside?

Would you want to trawl through financial reports every evening and every weekend, forgoing precious family and leisure time for a 20 percent return (most money again) or would you go for a passive strategy that returns 15 percent?

Understand the game. There is no way an investor can win the game without understanding it. And as Catherine has shown, once you bring your understanding of the game up a notch, there is little chance of you losing it.

Game theory and Investing

I will leave you with what authors Dixit and Nalebuff had to say.

Though it involves simple common sense, much is counter intuitive and can only be mastered by a new way of seeing the world.

Of course the authors are talking about Game Theory, but deep in my mind I know without a doubt it is the greatest takeaway an investor can ever have.

- See more at: http://www.bigfatpurse.com/2014/10/what-catherine-pichotta-and-game-theory-taught-me-about-investing-2/#sthash.cUcv6gBT.dpuf

Solution to my 2013 and 2014 extreme losses

Mind

1. Daily let go
2. Coach
3.  Ignore news and daily price movements and only use price alerts

Method

1. Supply and Demand and Patterns trading..trade what I see
2. FA+TA+PA template, positive cagr
3. Cut loss

Market

1. CFD
2. Forex
3. Stocks

Giving

1. James Hon and TDTP
2. Dr Tee and Ein55 coaching
3. Facebook Supply and Demand

Forex fundamentals

1 Standard lot = $100,000

1 Mini lot = 0.1 standard lot = $10,000

1 Nano lot = 0.01 standard lot = $1,000

-------

Always use Pending order.. and not market execution!

--------

Buy stop and sell stop v similar to market execution.. (Breakout strategy)

Key strategy for multiple timeframe in ANY instrument when I am doing trend trading

Black October - to AVOID!

This is, after all, October, infamous for some of the most notorious stock market crashes in history;

~ The Panic of 1907 (October 1907)
~ Black Tuesday, Thursday and Monday (October 1929)
~ Black Monday (October 1987)

Let’s also not forget that fateful October in 2008 that effectively ended the lives of Lehman Brothers and Bear Stearns.

Trivia:

• The first day of October Expiration week has been up on the DOW 27 of the last 33
• Expiration week is usually bullish
• October Expiration Friday has seen the DOW go down 8 of the last 10 (this is the anniversary of the Crash of 19 October 1987 – DOW went down 22.6% in one day, the single worst loss in a day.)

Question for Supply and Demand

1. Probability of a RBR breakout.. then later becoming demand zone for DBR?

2. Level on level?  I trade on which level pullback?  Also is generally level on level higher probability?

3. Gap.. is it correct for the left and right candles?  Can it be considered supply or demand zone?

Candlestick analysis

Candlestick patterns

Hammer and Shooting Star in a trend!!!

Strongest candlestick signal
Need confirmation. .follow rule strictly!!!!!

1. valid for 4 days.. if by 4th day it break hammer high.. valid
2. Volume at hammer range shud be increasing

----
When hammer fail?.. Price drop below it's tail

----
Price patterns

1. Bullish flag

a. Flag pole
b. Small few candles drop
C. Sell Volume drop

2 parameters for confirmation

A. White candle breakout of flag channel
B. Volume drop during drop and rise more than half intraday during breakout

***Logic - hedge fund buying. . Won't put all funds in at one time for big fund... they will put percentage money..E. G. 30 percent first time. . Then even put 20 percent to sell their stocks to push price down and force retailers to sell them..

Then buy the rest. .. Key is to average their costs

-------------------
HK market do not trade Hammer!

Hammer v good for Singapore market

What a Professional Trader thinks

Scalping

Scalping - Sideway

1. Trade on Channel top and bottom

2. Spike signal

Scalping - Trend

1. Scalp using support and resistance using EMA 30 (of current time that I Enter.. E. G. 1 hour,  30min, 15 min)

2. Follow the big trend (daily) using EMA 30.. no need draw lines

3. E.g. if short.. need to wait for lower high to be confirmed

For E. G. See below

4. For trend strategy. . I shud only lose once. . I. E. During a big trend change. .

5. If there is a direction, I can set my stop loss at 50 pips. . Because I atm trading with trend,  my probability of winning is high

----------------

My journal

- record my P&L with my emotions recording

- E. G. I don't follow rules, I anyhow trade

- best way Is to stop trading and go to bed or go for run

--------------

Follow news and trend

www.dailyfx.com/calendar

HPB talk

1. Noise - Ignore the noise

Relationship bet happiness and mental wee being

- Add animation on ppt

- turn to your neighbor and say "take care of your mind"

- close your eyes and "don't think of a pink elephant"

2. 3 min breathing exercise

-visualize breathing in fresh air
- breathe out visualize release all the tension

------
Kopi - 3.5 teaspoon
Kopi siu Dai - 1.5
Teh kosong - 0 teaspoon
Soda - 7 teaspoon

---
Screening frequency

Obesity -once a year
High blood pressure - once every 2 yrs or advised by doctor
Diabetes - once every 3 years
Cholesterol -once every 3 years
Colorectal cancer - faecal 1 yr,  colonscopy - once every 10 years

----
7 min HI IT workout

--------------------
Key hand movement by Marianne
1. 50 thousand thoughts. . -use hand cheong left

2. Kana stuck in one thought - flap hands

3. Worst. . Rationalizing -both hands slap each other

4. Kana emotion angry.. use hand pump heart

5 . People also *flap hands.. now put my pen.. my pen (I. E. Argument or defense).. I kana flapped!!!!!!

6. Drop.. use pen drop down..

7. Then drop all my thoughts and judgement and comment. .and just LISTEN to them..and touch them..touch their hands and shoulder. .

-----
Use egg in container vs tennis ball

----
Victor Frankl story.. he is v resilient.. thats why he survive..

Everyday he visualize him cleaning up and giving a lecture.. at one time how he escape.. he jump into a wagon of dead people.. and then escape

-----
Next time in angry..m E. G. With James, Selina, KH etc..  Count 3 2 1 .... and deep breathing. .

Pivot points, CCI

CCI numbers

1. CCI (14d)
2. EMA (3)

--------

Coincident indicator

10 day EMA and 10 day EMA open

---
Pivot points..

----
Support and resistance

----
Candlestick

----
RSI -10

-----
Stochastic % k (14d)
% D (3)
Smoothed % D (3)

My forex strategy thinking

1. Trade only when there is obvious trend and buy/sell on pullbacks

- Daily chart - never go against the daily chart trend.. best only trade when there is a obvious trend on daily. .. ignore if consolidation and worst if it is choppy

----
Keys

1. Must write down my thinking and plans. .every fucking detail

2. All build upon price action as they are leading indicators..  (Price patterns, Support and resistance, higher high and higher low,  swing points,  3 types of trend - Uptrend,  Downtrend, Consolidation)

The RSI etc. .are just for fine tuning

------------------------

Strategy

1. Trend line - Daily, H4, H1

2. Supply and Demand zones

3. Key swing points

4. Fibonacci retracement

5. Key support and resistance zones

6. Price patterns - Flag, triangle, rectangle boxes..(reversal and continuation)

----

6. Add lagging indicators

Key important things

1. Never go against daily chart trend!!!!

When daily chart is down..

I.e. at least 2 lower high and 2 lower low..

Use the swing points. . As 

2. Alex story - within 1 month from Normal to depression and go to IMH

a. He was worried

b. He compare a lot with his peers

C. He was unhappy

D. He lost 100k,  lost his job, loss his girlfriend

***as traders.. it is much much more important to know when to enter and enter to exit..then why.... (e.g. why S&P go up, why dollar drop etc..)

Summary - Trade what you see not what you think! !!

Trading is a personal journey. . No 2 people are the same!...

Key principles for Ein55 Super Traders

Key Principles

1. Buy low, Sell high
2. FA + TA + PA (#1)
3. Position trading vs intra day or Swing (#2)

Principles and rules like light beacon to guide us

-----
Add Metaphors

1. Windsurfing Ein55 style 3.. ride the largest wave

I am a OWL and a SNIPER in my trading and investing

Owl - The Sage

A sage is wise and deliberate in his thinking. He doesn’t act rashly and he has great patience. He sees through the surface of things with his deep knowledge and experience. He continues to acquire knowledge even though he already knew much more than most people. He attracts many disciples as he preaches wise words to them.

The Sniper

A sniper in the military has an edge over his or her enemy; their edge is unwavering patience, mastery of their weapon, and the ability to remain consciously in control of their mind and body for long periods of time in high-stress situations. 




---------
What Is Your Investment Archetype?
By Alvin Chow
The Greeks have recorded archetypes through the mythological figures in their stories such as the Iliad and the Odyssey. These Greek Gods have personalities like humans, with only the special powers that separated them from men.
The psychologist Carl Jung purported the collective unconscious of mankind. It was a radical idea even today. I am no expert in this area but I will attempt to explain it as simple as I understand it to be.
Stories have been used to communicate since our ancestors were cavemen. Stories are also passed down through generations, albeit with lots of modifications. These stories often have characters or personified animals, and overtime, these archetypes are formed in our minds. They are so ingrained in us that we would immediately form an impression; for example when we say someone is a “motherly” figure, an image of a caring, protective, and sacrificial woman would appear in our heads. Jung said that the society has formed such collective views of these figures or archetypes unconsciously. A newborn would have began downloading and installing this societal views from day one. Unconsciously of course.
To make it a little interesting, let’s see if we can adapt the common archetypes to the world of investment. I am not sure if anyone has done this before. If not, I will blaze the trail.

The Sage

Let me guess… Your first investor who came to your mind is the Sage of Omaha. Right?! A sage is wise and deliberate in his thinking. He doesn’t act rashly and he has great patience. He sees through the surface of things with his deep knowledge and experience. He continues to acquire knowledge even though he already knew much more than most people. He attracts many disciples as he preaches wise words to them.


----

Trade Forex Like a Sniper…Not a Machine Gunner

Posted on July 20th, 2011 by Nial Fuller in Forex Trading Articles

Today’s Forex Lesson is “Awesome”. In fact, It’s probably one of my best trading lessons I have ever written. It took me at least 2 days of brain power and probably 20 coffees.  Please pay it forward, share it with others. Enjoy.

A sniper in the military has an edge over his or her enemy; their edge is unwavering patience, mastery of their weapon, and the ability to remain consciously in control of their mind and body for long periods of time in high-stress situations. We can apply these same concepts to Forex trading…

Forex trading is very similar…you need a trading edge (weapon), you have to master this edge, you need to develop and maintain rigid self-discipline and control, and you have to execute your edge flawlessly in the face of constant temptation to over-trade and over-leverage. Now, trading is nowhere near as stressful as war, but it still requires conscious control of mind and body.

Those traders who learn to pick and choose their trades wisely, trading like a Forex “sniper”, are typically the ones who succeed long-term, whereas those traders who act like machine-gun traders by shooting at everything they see (trading too much), tend to run out of ammo (money) very quickly and fail to accomplish their goals in the market. Let’s discuss how you can learn to trade like a sniper instead of shooting at everything (taking every trade) that comes your way…

• Accept that less is more in Forex trading

One of the things that we traders can learn from a sniper in the military is that in certain situations less is indeed more. Forex trading is definitely a “situation” where less is more. However, it is very common for beginning traders to feel that more is better; more Forex indicators, more trades, more analyzing, more money on useless trading robots, etc.

What is the result of such misinformed beliefs? The result is almost always over-trading; indeed, most beginning Forex traders are like machine-gunners; spraying bullets (money) at everything they deem to be a trade and likely causing more damage to their trading accounts than good. The first step that you need to make if you want to trade more like a sniper and less like a machine-gunner, is to truly accept that less is more in Forex trading.

Just like a sniper waits patiently for his or her pre-determined target to come into view; you need to learn how to wait patiently for your pre-defined trading edge to show itself in the market. As price action traders we have a very effective trading edge that allows us great opportunity to trade the market with sniper-like precision, and the daily charts provide the best “battleground” for us to execute our edge on.

• Higher time frames

As I mentioned previously, the daily chart should be your “battleground” for developing your ability to become a Forex sniper. Why, you ask? Because it is the daily chart that gives us the “highest value” or highest-probability targets when compared to any time frame below it. Weekly charts are also accurate, but they don’t give us enough targets each month and they are less practical to trade than the daily chart.

These targets are price action setups, and you should think of them as higher-value on the higher time frames, because in reality the higher the time frame the higher-probability the setup becomes. This is the primary reason that trading higher time frames drastically increases trading success. Think about it this way; a sniper is on a pre-planned mission to take out high-value targets that can change the course of a war, and in Forex trading you should be looking for the highest-probability trade setups that can have the greatest positive impact on your track record.

Machine-gun trading the lower time frames is not going to do anything but cause you to lose all your ammo or money a lot faster than you think. There is really no sense in ever trading any time frame below the 1hr chart since the value or probability of the targets or setups decreases dramatically as you move lower in time frame. You want to stick to the high-value or high-probability setups of the daily chart as much as possible, and especially while you are still learning to trade.

• Patience

If there is one thing that a sniper in the military definitely IS, it’s patient. Patience is like the “magic” ingredient that makes everything work for a sniper in the military, and it is also the “magic” ingredient that you will need to use if you want to become a Forex sniper. Most beginning traders lose money in the markets, and most beginning traders are also anything BUT patient. See the connection here?

There is a tendency for traders to want to “force” the issue of trading by manifesting signals that aren’t really there or by jumping into a signal that has not closed out yet. When it comes to money it is human nature to be impatient, this is otherwise known as greed, but if you don’t learn to become a patient Forex trader, you will never forge the type of overall self-control that it takes to succeed as a Forex trader and become a Forex sniper.

• Mastery of strategy

A sniper will train for years to sharpen and perfect his or her shooting skills, and a sniper knows exactly what their target looks like and pulls the trigger without hesitation. Similarly, you will need to “train” with the particular Forex trading strategy you choose to employ in the markets so that you know EXACTLY what you are looking for every time you open your charts. However, you will need to do more than that; you will need to truly MASTER the Forex trading strategy that you choose, because if you don’t master it, you will never achieve your full potential as a Forex sniper.

Mastering a trading strategy begins with education. If you choose to employ high-probability price action trading strategies, I can provide you with the Forex trading training you will need. However, you must put in the time and effort to learn and master it; I cannot do this for you. You need to be realistic about this, it will take time; it takes time to become a master at anything, and Forex trading is no different. But, if you put in the necessary time and take advantage of the insights discussed in this article, you will begin trading like a sniper sooner than you might think.

• Developing a sniper-like Forex trading mindset

Sniper-like Forex trading breeds confidence and discipline. The more you strive to trade like a sniper and less like a machine-gunner, the more your Forex trading confidence and discipline will improve. This is because you will be rewarded for patience, and as you start to see your patience pay off over time, you will want to maintain it.

It is the initial stages of developing a sniper-like Forex trading mindset that most traders fail at, usually because they do not understand the power of patience and discipline. It tends to feel better to be a machine-gun trader because you feel powerful and “in control”. The problem with this mindset is that you can never control the market, in fact, the more you try to control the Forex market the more it will actually control you. The only thing you CAN control is yourself by learning to trade like a sniper, and if you do this you will significantly increase your chances of success as a Forex trader.

Trading Like A Sniper is part of my ‘core trading philosophy’ that I teach my students. If you want to learn more about becoming a disciplined price action Forex “sniper”, check out my forex trading course and traders community here.