The 3-2-1 Approach: A Simplified Method for Trading Any Market

[bthomas]

Clarification

Reaver let's clarify two points. First, I did not delete any of your posts or ask that any of your posts be deleted. If that was done, it was without my knowledge.

Second, I posted Charles Cochran's bio in the full disclosure part of this thread. I have copied it here for you.

Charles is a partner in the Trademaven Inside Edge, the educational arm of Trademaven Group LLC and has been in the securities and futures industry for nearly 30 years. He has been a broker, analyst, CTA, Independent IB, publisher and developer of software programs. Since 1997 he has taught Market Profile classes at the CME, CBOT, and NYMEX exchanges.

If only you could channel your immense talent and energy into assisting traders to succeed, this would be a better forum. I look forward to hearing your most productive trade set-ups, created with non-proprietary software with a free data feed, that work in all markets for 70%+ winners. In the absence of that data, I'll assume that you are still studying, like the rest of us, to stay current with the market's behavior to improve your recognition of trade set-ups, execution, and trade management.

 

[ZAL]

Quote from pitbulltrader:

any chance I could get you folks to post some ES analysis? Bonds don't do it for me...Don't have time to sit in the trial now but later this summer I'm hoping to give it a try..

Thanks

Bruce

Although Charlie covers the ES in the TradeMaven Inside Edge Traders Room, we have been posting the Bond charts because we want to introduce a market that contains a higher degree of participation of institutional/commercials/hedgers than the ES.

The Bond is easier to trade, plane and simple.

If there is a market easier to trade than the Bond then I would introduce it to you. All we should care about is our ability to make tics. The market that gives us the best probability for consistent success is the one we should concern ourselves with.

 

[bluebolt]

Quote from traderNik:

Hello bthomas

So basically you are telling your subscribers that if they use your system, they will be able to know that at any given time, the market will either go up or it will go down? Is that an accurate summary of the facts? If not, can you give us some guidance in terms of the quote above?

Thank You

When will you ever think for yourself and stop looking for guru's?

You must be getting slaughtered

 

[ZAL]

Quote from bluebolt:

When will you ever think for yourself and stop looking for guru's?

You must be getting slaughtered

When I think of the word 'guru' I picture some guy on a mountain top in India, incense burning, flowing robe, white hair and beard proclaimimg his wisdom and 'the truth'.

Personally I don't know of any trading gurus. I do know of a few talented educators. Charlie Cochran of TradeMaven Inside Edge is one.

There is nothing wrong with seeking help to improve anything in ones life that needs improvemment. Finding the right tutor is the hard part.

 

[Reaver]

Quote from 5Pillars:

MP/AMT/CD does not have to be drawn out into a many month long task.

5P hit the nail on the head with this.

Seriously, data and platforms are expensive enough. Do not go blowing your trading capital on chat rooms and theories. Part of running a good business involves keep overheads as low as possible. Doesn't mean always buy the cheap stuff...but it does mean to make sure you are not overpaying for your tools.

Read good material (Cisco site, Dalton, Steidlmayer comes to mind) and pay attention to the screen. Get the concepts down (which you can get in the resources I previously mentioned) and then watch the screens til it clicks. Bingo. That's it.

The rest is discipline, cunning, and testicular fortitude.

It is a HEURISTIC and INTENSELY PERSONAL PROCESS.

Even Steidlmayer himself emphasizes the importance of self-discovery.

If you have inherited a few hundred grand or just sold your business for a large sum of money and have absolutely nothing else to do, then hey go spend $400/mo on chat rooms to have someone teach you THEIR way (not YOUR way) to trade.

Not knocking the concepts by Trademaven, as AMT/MP, etc is sound....but you are essentially retarded to spend that much money on education unless you just seriously can't think of anything else do with the already large sum of money you are sitting on (ie you are trading as a hobby, not a living).

Again, awesome post from 5P, an expert in the field. One would do well to listen to him. DO NOT OVERCOMPLICATE IT.

Trading is a lifetime learning process, but doesn't have to be overly complicated...just like playing guitar isn't complicated, but anyone who plays is constantly learning...you do not need someone to inundate you with tons and tons of theory. Once you get the basics and rudiments down, you go learn your own style and progress the rest of your life. In fact, outside influences can actually hinder your development (in music and trading).

One more time for possible penetration. Read what 5P said. Don't make it any more complicated than it has to be. Those who make it so complicated just want to make themselves sound smart so you will pay them money to "teach" you.

Case in point: I recently cut away all the extraneous shit I have been trying to learn and started focusing on what I already know to work. I understand auction markets, it's in my blood. My granddad started a Cadillac dealership from dirt poor scratch in the mid 1940's and ran it until he passed away a few months ago in his 80's. I wanted to make my own way in life, not ride his coattails...so here I am. I grew up around sales and haggling. It was ingrained into my head all my life. As soon as I became aware of auction market theory as it relates to being a trader, it clicked. I wasted a lot of time trying to figure out other ways to look at the market, but common sense kept bringing me back to what I am good at. Reading situations (whether it's on a car lot, or in the market). It just makes sense. Maybe it's harder for others to understand, I don't know...but apparently 5P agrees with me. That is at least strong circumstantial evidence that this whole process is somewhat intuitive and possible without overcomplication. Just an example of a situation I found myself in...even if we already know the right answer, we keep looking for something better and better.....Easy to get wrapped up like this, especially in trading.

Just wanted to post an example of how I fairly recently screwed up and ignored the obvious answer....just so no one accuses me of claiming that I am some sort of expert trader/genius (I most certainly am not, not by any stretch).

 

[bthomas]

Recap for ZB on 6/10/08

Following are Charles Cochran's comments about the Bond trading on 6/10 and what to look for early on 6/11.

F2 Comments: The market did hit our recommended sell zones and sold for the rest of the day. ES directional uncertainty held the market in a range until it broke into the day session close. The news was negative w/most of the focus on inflation. Inflation is not good for Bonds. Little in the way of news to drive tomorrow’s trading. Tomorrow’s API’s followed by the Beige Book at 1300 is all that is on the slate. If the ES is sideways to higher, I want to sell early strength and see if 112-30 can be taken out. If it holds, will cover. Aggressive sell is 113-11/15. Back up sell is 113-19/23. Cover, if 112-30 holds.

 

[FanOfFridays]

Quote from bthomas:
TraderNik,
I recommend that you read the Market Profile thread and the entire 3-2-1- thread in this forum for the answer to your questions.

We don't offer a system, we offer a methodology. Proper interpretation of the Market Profile chart will reveal where the really big institutional players are "likely" to enter the market. It is these players who the small trader must follow in order to be successful.

Hi bthomas

Thanks for the reply, I appreciate it. Actually, my question relates specifically to your post in this thread, in which you stated

it means the market will do one of two things: It will continue moving in it’s current direction or retrace its recent move by trading in the opposite direction.

Here, you are saying that your methodology will indicate to your subscribers that at any given time, markets will either move up or they will move down. Since this is literally what you said as opposed to my interpretation of it, I thought I would request a clarification.

Can you explain this unusual statement to us? If you are unsure about where you said this, I would be happy to provide the link, or you could just navigate to the first 20 or so posts in this thread, where you will find it quite easily.

I believe that your customers deserve a clarification here, seeing as this statement is so unusual.

Also, could you please provide an explanation of the difference between a 'system' and a 'methodology'? Many market observers have pointed out that a system is the same thing as a methodology. You seem to be saying the opposite. Any comment would be appreciated.

All the best

Nik

 

[ZAL]

Quote from Reaver:

Again, awesome post from 5P, an expert in the field. One would do well to listen to him. DO NOT OVERCOMPLICATE IT.

___________

Once again....I invite you to attend our free 10 day trial in the traders room. Ask the traders in the room if we have made trading more complicated or less complicated as a result of the traders room and our TradeMaven Inside Edge software.

Our goal has always been and will always be to make trading less complicated.

You seem conflicated with the idea of charging a fee for a service or product that alleviates the complexity of an endeavor.

 

[bluebolt]

Quote from ZAL:

When I think of the word 'guru' I picture some guy on a mountain top in India, incense burning, flowing robe, white hair and beard proclaimimg his wisdom and 'the truth'.

Personally I don't know of any trading gurus. I do know of a few talented educators. Charlie Cochran of TradeMaven Inside Edge is one.

There is nothing wrong with seeking help to improve anything in ones life that needs improvemment. Finding the right tutor is the hard part.

Well you are an ET sponsor so that's a bit like Stalin giving a lecture on democracy and humanitarianism

 

[Reaver]

Quote from ZAL:

Quote from Reaver:

Again, awesome post from 5P, an expert in the field. One would do well to listen to him. DO NOT OVERCOMPLICATE IT.

___________

Our goal has always been and will always be to make trading less complicated.

You seem conflicated with the idea of charging a fee for a service or product that alleviates the complexity of an endeavor.

Dubya?? Is that you? Shouldn't you be out doing something about the oil crisis instead posting here under aliases?

Maybe you should recordify a webinar and post it here. lol

You must really be misunderestimating the intelligence of the people here. There's a saying in Texas, fool me once, shame on...shame on you...fool me...you can't get fooled again.

P.S. You seem to think I am trying to learn your method....I am not. I have no interest whatsoever in your chat room. I think that this false, and self-flattering assumption on your part is what is causing the hang ups with our dialog here.