Quote from stevegee58:
Spydertrader, so have you reached a point where you just make picks by eyeballing the charts with the "Hershey Posting Chartscript 3.0" chartscript every night? Or do you also do the usual dry up and bruno r scans?
I used the "Hershey Posting Chartscript 3.0" to post the BTUI chart as it provides the 'cleanest' version of a Wealth-Lab Developer chart - free of lines, squiggles, channels, shading and other things that assist everyone in determining when (or when not) to trade. However, over time, everyone should get to a place where they simply 'see' where price plans to head next. I do realize posting such a statement on ET opens me up for a great deal of criticism. Suggesting anyone has the ability to forecast future price levels with any degree of accuracy is akin to suggesting the sun plans to rise in the
west tomorrow morning.
Fortunately, with time, hard work, experience and some effort the puzzle pieces really do begin to fit together. Almost as if you wiped away the dirt from a pair of mud covered sunglasses, for the first time, you begin to see things differently - more clearly in fact than ever before. The big picture comes into focus and you have another one of those Aha! moments.
Journal one focuses almost entirely on a 'beginner' method for equities. This beginner method suits the new trader as it provides high probability for success using specific entry and exit rules. In short, enter late and exit early to make money fast. By focusing on the MACD Histogram and Stochastic Indicators in the Beginner Methods of Journal One, a new trader trains the mind's eye to look for specific sequences of indicator set ups in an effort to obtain a greater and greater percentage of the overall move in price. At this point, we move to Journal Two and see how using 'Bruno R', Rockets, High Noon Hold and other indicator levels can provide opportunity for significantly greater levels of profits. However, such high levels of profit potential comes with added risk.
As one moves along the continuum from beginner to intermediate and advanced levels of trading, one sees the potential for a stock to 'breakout' from any point along the 'natural cycle,' and as such, one sees opportunity everywhere one looks. They key at the advanced levels changes from seeking stocks to make profit to choosing the fastest way to profit among the opportunities presented each and every day.
In an effort to motivate individuals to move beyond their comfort zone and seek higher returns, Jack posted his "Too Long" document describing the use of second derivatives for trading each and every day. Because these intermediate and advanced trading methods have added risk, a new trader must have a strong foundation built from the methods outlined in Journals One (and the beginning of Journal Two) in order to 'see' when the strict rules apply, and when they do not. In other words, through repetition and following a rigid outline of rule sets from Journal One, those who build a strong foundation upon the methodologies described have unconsciously (or subconsciously) trained their mind to 'see' things others do not. Those individuals who have the ability to look at a chart and 'know' the direction in advance can relate to these words. If anyone hasn't found the ability to do so just yet, don't worry. If you followed the advice given over and over again about reading through the Journals, then it is only a matter of time. Assuming, you've already put in the effort, and didn't attempt to 'shortcut' your way to success, then you'll get to the point where you just seem to know in advance. After that point in time, you know you have it.
Quote from stevegee58:
I'm finding that the scans haven't resulted in many trades for a while now. I'm thinking that I'm too focused on rigid rules and I'm missing out on the spirit of the framework which would give me more trades without really increasing risk.
Lets look at the context of where the market finds itself right now. Geopolitical risk from the Middle East, an upcoming election, High oil Prices, negative sentiment and the end of summer have resulted in significant indecision in the marketplace. Low volatility levels have many people complaining about the difficulty in extracting money from the market. Use this time to your advantage. Rather than having concerns over the lack of tradeable signals, use the current environment as an opportunity to review fundamentals, review Journal posts or study the charts. Notice what happens when certain indicators line up a certain way. Continue to study the PVAD relationship, and over time, how you see trends starting and stopping within a price channel. These fundamental building blocks of the Hershey System find usefulness each day either trading equities or when trading the Index Futures. Whichever path you choose, you'll need a strong foundation to make money. I encourage everyone to make sure they take the time to insure their own success.
I hope you find the above information useful.
- Spydertrader
