Iterative Refinement
- Thread starter Spydertrader
- Start date
Hello all,
I did not post a lot last week. I was sick in the middle of the week, which made me behind on everything in my life.
I do have some reflections I want to pass by and make sure I am on the right track, since last week was an ABYSMAL week for my trading, though this week has been ok so far (I owned SOFU for the Gap up, but stopped on on the early morning decline, so I missed about 1/2 of the profit I could have had....)
What I want to make sure is that I am finally grasping the basics of the method, and starting to see the bigger picture, as Spyder advised. I have been reading some of Jack's writings and I fully understand the P/W boolean Algebraic relationship and the jokari window. Basically, increasing volume means continuing trends, decreasing volume means changing trends. I have also been reading his formation summaries so that I can try to recognizes them when drawing my daily channels (not moving into daytrading just yet). I do not have them memorized, but I am working on it. So far they have helped me pick out a few good trades (JRJC, FMCN today on Pennants forming) and understand better my good trades in the past (STP right before the solar stock bounce).
Perhaps the most helpful analogy Jack gave was one I read where he compared drawing channels and watching volume like lining up a put in golf. The channel is your trajectory and the volume is your velocity. As long as the ball stays within the trajectory and has enough velocity, keep your position. As soon as one of those begins to break, take your profit. I relate more to inertia and escape velocity terms, but that's the astrophysics minor in me coming out.
IF (a big if) my understanding seems to be on the right track, please let me know, because I still make an awful lot of bad trades (not enough to make me lose money, fortunately). I'd like to know if this is due to one or both of the following:
1)My UNDERSTANDING needs work. I know I can always understand thing better, but what I mean here is whether or not the basics are solid.
OR/AND
2) I just need to put my correct understanding into better practice. Through drawing channels and charts I will refine my skills and build upon a correct underlying understanding.
Thanks all!
JF
I did not post a lot last week. I was sick in the middle of the week, which made me behind on everything in my life.
I do have some reflections I want to pass by and make sure I am on the right track, since last week was an ABYSMAL week for my trading, though this week has been ok so far (I owned SOFU for the Gap up, but stopped on on the early morning decline, so I missed about 1/2 of the profit I could have had....)
What I want to make sure is that I am finally grasping the basics of the method, and starting to see the bigger picture, as Spyder advised. I have been reading some of Jack's writings and I fully understand the P/W boolean Algebraic relationship and the jokari window. Basically, increasing volume means continuing trends, decreasing volume means changing trends. I have also been reading his formation summaries so that I can try to recognizes them when drawing my daily channels (not moving into daytrading just yet). I do not have them memorized, but I am working on it. So far they have helped me pick out a few good trades (JRJC, FMCN today on Pennants forming) and understand better my good trades in the past (STP right before the solar stock bounce).
Perhaps the most helpful analogy Jack gave was one I read where he compared drawing channels and watching volume like lining up a put in golf. The channel is your trajectory and the volume is your velocity. As long as the ball stays within the trajectory and has enough velocity, keep your position. As soon as one of those begins to break, take your profit. I relate more to inertia and escape velocity terms, but that's the astrophysics minor in me coming out.
IF (a big if) my understanding seems to be on the right track, please let me know, because I still make an awful lot of bad trades (not enough to make me lose money, fortunately). I'd like to know if this is due to one or both of the following:
1)My UNDERSTANDING needs work. I know I can always understand thing better, but what I mean here is whether or not the basics are solid.
OR/AND
2) I just need to put my correct understanding into better practice. Through drawing channels and charts I will refine my skills and build upon a correct underlying understanding.
Thanks all!
JF