Iterative Refinement
- Thread starter Spydertrader
- Start date
Feel free to post questions (but please include a chart), comments, concerns, observations and commentary on others' work. The collaborative iterative refinement process benefits everyone in the process.
First of all, nice trade. I watched EXM move rapidly all day wondering if anyone jumped on that train. Nicely done. Where you need to go from here: Start to learn to 'see' the signals provided by the market. A good first step sits in last year's futures journal. Read through the monthly posts (Tums once posted a series of links to all these), and begin to 'see' things in terms of the Price - Volume Realtionship. The time has come to begin to remove the training wheels (indicators), and as a result, you need to learn "what must come next" in order to learn to enter and exit at the appropriate time. The beginner level 'low band' DU and other levels provide a 'beginner level' mentality in terms of market signals. You need to learn to see the entire picture - rather than - only part of the picture you see now.
Leave the stocks on your list for now, but stop trading them. They represent market signals beyond your current skill set. As you begin to learn your improved set of trading skills (see previous parsed answer), intermittantly review these same stocks. At some point, what once provided confusion will begin to signal clarity. That is how you can 'know' the dominos are beginning to fall into place.
The methods work in any market on any time frame - provided sufficient liquidity exists. Luck plays no part in the signals provided by the market. Again, you already are 'seeing' some signals the market provides. Time to move forward and learn some more.
Equtiies represents the 'warm up drill' for futures, and on the futures side of things, people enter from both sides of the market. I feel it very wise to learn to do so in equities as well. However, learn from the long side first. After all, short represents nothing more than a mirror image of long.
- Spydertrader
Quote from Spydertrader:
If you thoroughly annotate your charts (M), and know the sequences and permissions (A), while understanding what must come next (D), then you'll not need me to point out on which track you find yourself.
- Spydertrader
I know Spyder, this is a journey for self starters. There are times that for me the best way to fully ingrain the knowledge and cement it in place is when your mentor tells you you are on the right track and what you have learned and practiced is moving towards the right way to proceed. The eval that I did was about P/V and WMCN from what I saw on the chart you provided. I just need to know if what I saw was correct so I can build on that knowledge and then go from there. When I have MADA completely down, your right, I won't need you anymore, except to shake your hand and buy you many cold beers.......(or your beverage of choice)
Thanks
sscott
Read my post again - several times if need be. While you read, evaluate whether or not you meet - or exceed - the criteria listed. If not, then perhaps, I have already provided you the answer needed. I just didn't provide the answer you wanted.
- Spydertrader
I will do that. The P/V Relationship. Does this have to do with something I think I have observed. Volume brings to light the pattern of price. In other words, as volume increases, it will expose whether the stock is moving in an upward or downward trend. So a stock will jump on lots of volume, deteriorate on lower volume, and then jump again on high volume. Eventually, there is a shift in this pattern, but as you said, my skill set is limited, and I cannot decipher exactly when that shift is.... though I can feel it coming sometimes
.JF
Quote from Jesus_Freak:
I will do that. The P/V Relationship. Does this have to do with something I think I have observed. Volume brings to light the pattern of price. In other words, as volume increases, it will expose whether the stock is moving in an upward or downward trend. So a stock will jump on lots of volume, deteriorate on lower volume, and then jump again on high volume. Eventually, there is a shift in this pattern, but as you said, my skill set is limited, and I cannot decipher exactly when that shift is.... though I can feel it coming sometimes
JF
I think you are on the right path JF... do a search on here for 'jokari window' and enjoy your journey
I have a question which Spyders reply brought to mind.
When should I make the move to futures? Is there a threshold of understanding/experience that I will just "know," or will it be a leap of faith no matter what? Or should I "test the waters" first to see what it is like?
Thanks again!
Jamey
When should I make the move to futures? Is there a threshold of understanding/experience that I will just "know," or will it be a leap of faith no matter what? Or should I "test the waters" first to see what it is like?
Thanks again!
Jamey
Hi Jamey, Here is my opinion.
Good trading to you
gooch87
Quote from Jesus_Freak:
I have a question which Spyders reply brought to mind.
When should I make the move to futures? Is there a threshold of understanding/experience that I will just "know," or will it be a leap of faith no matter what? Or should I "test the waters" first to see what it is like? After following along in the equities journal I started daytrading stocks on a 5min fractal. After dealing with tax paperwork with all of those trades, I moved to futures. No hassle with the tax man now.
Thanks again!
Jamey
Good trading to you
gooch87