02-03-2012 Mid day chart.
Attachment: 2012-02-03_1208_mid_day.png
I got PM asking to go into little bit more detail about my long trades on 02-03-2012 after 8.30 am Employment data.
Pattern is there, recognition is there, need confirmation to execute the trade. Availability of one of following or all three is needed
1) System1 ( part of brain which executes skilled responses and generates skilled intuitions) has seen the patterns enough of time and has developed enough via screen time that INTUITION is REAL. System 1 and 2 part of the brain work as ONE. ( idea explained in Daniel Kahneman book)
2) Mystery of indicator for confirmation. Only for confirmation not for trading opportunity.
3) Mystery of system 1 & 2 of the brain and indicator.
FIREWALL AROUND EQUITY AND EMOTIONAL CAPITAL:
On top of above 3- Past trading success in the market- last week, last month, last quarter, last year etc.. matters a lot. Longer the time frame better the RESULTS and CONFIDENCE in executing the trade.
A trader who has booked 1,000 ticks from the market last month will have more confidence in executing a set up vs a trader who has 200 ticks from the market even though both of them has all 3 above mentioned pre requisite for successful trading. If i had traded per my SCREEN TIME pattern recognition ability to the fullest, Friday had a 400 ticks opportunity. But, i did not as i am working on building my FIRE WALL along with making sure my System 1 and 2 work as ONE.
Difference in FIRE WALL matters a lot. So, keep building the FIRE WALL. Keep practicing with SCREEN TIME so that impulsive nature of System1 of brain is controlled and lazy tendencies of System 2 side of the brain are fine tuned to a point where they act as ONE.
Traders interested in learning about System 1 and system 2 can listen to Jim Dalton free webinar " Understanding how we make Decisions" slated for January 12, 2012.
http://jdaltontrading.com/webinars.php
Attachment: 2012-02-03_1208_mid_day.png
I got PM asking to go into little bit more detail about my long trades on 02-03-2012 after 8.30 am Employment data.
Pattern is there, recognition is there, need confirmation to execute the trade. Availability of one of following or all three is needed
1) System1 ( part of brain which executes skilled responses and generates skilled intuitions) has seen the patterns enough of time and has developed enough via screen time that INTUITION is REAL. System 1 and 2 part of the brain work as ONE. ( idea explained in Daniel Kahneman book)
2) Mystery of indicator for confirmation. Only for confirmation not for trading opportunity.
3) Mystery of system 1 & 2 of the brain and indicator.
FIREWALL AROUND EQUITY AND EMOTIONAL CAPITAL:
On top of above 3- Past trading success in the market- last week, last month, last quarter, last year etc.. matters a lot. Longer the time frame better the RESULTS and CONFIDENCE in executing the trade.
A trader who has booked 1,000 ticks from the market last month will have more confidence in executing a set up vs a trader who has 200 ticks from the market even though both of them has all 3 above mentioned pre requisite for successful trading. If i had traded per my SCREEN TIME pattern recognition ability to the fullest, Friday had a 400 ticks opportunity. But, i did not as i am working on building my FIRE WALL along with making sure my System 1 and 2 work as ONE.
Difference in FIRE WALL matters a lot. So, keep building the FIRE WALL. Keep practicing with SCREEN TIME so that impulsive nature of System1 of brain is controlled and lazy tendencies of System 2 side of the brain are fine tuned to a point where they act as ONE.
Traders interested in learning about System 1 and system 2 can listen to Jim Dalton free webinar " Understanding how we make Decisions" slated for January 12, 2012.
http://jdaltontrading.com/webinars.php
