Quote from ChrisMMM:
First of all I would like to thank you, Jack for taking the time answering my ?s, and especially thank you for posting that chart.
âCheck your stack of calenders where you have marked the days you have looked at volume. I could be running around 15,000. I'll give you five years or over a 1,000 business days it actualy could be less for you.â - Ha ha, yeah I could say I really havenât spend that much time
Here is a word for you. Purposefully. A carpenter with 20 years experince may have just repeated the first year 19 times. â Kinda reminds me of myself. Iâve been studying the markets quite intensely. I imagine I can sure talk like I know about the markets, however only problem is I really ainât making any $$$
About that chart that you gave meâ¦
Jack,
I ended up creating an indicator that plots a red bar if price is below DU volume, a yellow bar if volume is between DU volume and FRV, and a green bar if volume is greater than FRV.
When you get a bar (30 min) that meets the FRV requirement do you use an indicator to show the direction and go that way, like if the fast line on the MACD is > than the slow line buy, and if the opposite go short?
I really like by using DU, FRV, and Peak how you define volume, and of course the PV relationship. Jack, is there more material that you have on the PV relationship. Iâm very interested.
Thanks
My comments below sort of combine a few things.
You are keen on inventing stuff. the colored volume bars.
I don't color them but they do follow a convention from the platform. It is above average and the platform designers were sort of lazy.
The chart I posted works on lists so no charts are involved.
Let's say I am setting up for the week and its the usual. What I am going to do is make money. I do have money in each stream of capital and it is invested in a stock.
Durng regular hours the markets show net declined year to year. At night when the markets are closed, over the years there is a pretty steady gain. The net of 24/7 is positive over the years.
This is where buy and hold comes from and why balancing portfolios came into being for financial analysts to have jobs and charge fees. THeir performance level is a standard for many many people.
I use the crayola standard, however.
To use the list to make money, you have to put the right stock symbols on it. The rest is just fun.
So learn to make lists of stocks that fit into a batting order for each stream of money you are running.
Have the batters bat in turn by just using the timing of their cycles and how a few batters for each stream can do the trick.
Those three questions and the scoring do the trick.
The IBD meeting 5 (June of 2006) where the transcript was redited is a good one to read and annotate. It is called "Putting the Pieces Together" and it illustrates a person using 100,000 dollars in four streams to make 1,000,000 dollars by trading for 100 business days or less.
There you see four batting orders in my hand writing and there are three stocks on each team. Two pinch hitters, as well.
We made the notes on a Sunday AM and the narration is how it goes on Monday. The notes set things up for the whole week.
There are 31 pics of the "unusual volume" on the batting list. for Monday.
It just took some pics and a narration to come up with the example which is 70 pages in color.
This is just business as usual for me when I am mentoring a local person.
The concept is that taking 100k and 100 days and becoming a millionaire can get the person ready for making money and doing a business plan.
You can figure out that if a person starts with 10,000 dollars he gets to 1,000,000 dollars by doing this twice.
1. choose the stocks.
2. put them on a list.
3. monitor.
4..trade as required.
5. repeat 100 times.
You aren't making money. That is fine and even good. You are being told to make money and you are creating a desire to do it.
What comes next is just recognizing how to do it quite well. It is obvious how to do it and make money.
You use cycles and you always know how the cycle is going.
You only use top quality stocks that do what you want them to do.
They are chosen automatically by thier quality and the list length is adjusted to make it the same length all the time.
So all the stocks you trade are clones that do the same thing. You put them in betting line ups and make money with them.
Beginners do it
Intermediates do better
Experts do some tweaks that make the above roll along quite a bit faster.
Someone will post here where to go for what you need to get going. It is all over the place and listed in the journals I, II and III.
Later this year we will finish up the expert parts.
Most people work for about a couple of years getting to rich starting from anywhere. At some point it clicks for them that this template can be used anywhere also.
When that happens and it is fun to go through, then the person is sitting in a neat place. He readily sees what others preceding him are doing and he gets with doing that. Everything in the person's like takes on new meanings. He can do as he wishes with his time and money.
Giving people purposeful and critical path methods for going the route is now down pat from our point of view. Communicating this is not too easy since it is best done by going to where the person is and bringing them forward as rapidly as they adopt a purposeful orientation.
Most people want to postpone being rich because they are driven to "invent" instead of doing "batting practice" which is how getting purpoesful of getting experience is done.
To see what making 1,000,000 million dollars looks like takes a weekend and about 50 daily charts 6 months long. You just start six months ago and log your trades on the those stocks you chose by sorting to get the list. you start with 25,000 in four streams and you have batting orders working for all four streams for 100 days.
Take out a 10B and do the math so you can see how many log sheets you need before you start.
Post your results on Monday. This will give you a nice booklet and it is a story of how to turn 100,000 dollars into 1,000,000 dollars during a five month period leading up to today. You will think you wished you did it six months ago. Or work harder for the weekend and do 200 days worth where you take 10,000 to 1,000,000 dollars.
As a person does this he gets to see that the template can be used elsewhere. Then he just changes gear and does a practice run to take one contract of ES up to ten times what he started with and then repeat that 4 more times. Here in et it has been noted that people using this teemplate at an intermediate level have had 3 100,000 dollar days thiss year as they operate at the 20 to 30 contract levels going up from 1 contract not too long ago in days. yuo can see that if you profit by 100,000 dollars that as the day goes by you can add several contracts during the day.
Again you have to do the crayola assignment on the ES and start frome one contract.
Most people cannot make any sort of decision to do any of these things. The reason stated most frequently is that they cannot afford to spend the time compared to other more important things that they choose to do. One person here has consistently memorized and collected everything for six years and he keeps deciding to not do it. He has proven to himself that he can't do it nor, since he can't , the other people doing it really can't do it either. Except that they are doing it.
What I think is very neat about making money in the markets is how fast a person goes from one level to another when he works purposefully. It is so different than what all the people you know are doing.
the chart I posted is kind of neat because you do not need to have any chart to look at. You have real time data coming into the list and you sort by the "unusual volume". The list is automatically arranged to the correct batting orders. I know it seems to take all the guessing out of it and it makes a lot of money very rapidly. All that had to be done was make the chart for people to use once the platform people got unusual volume thought up to make is automatic. Before that it ws a little harder, you had to do it on a log. during the day. I kept a case of my logs from that period when it was manual on sheets of paper.
