The day to day psychology of a trader

Preface

Should have started with the Preface, but I'll do both : Preface and Chapter1.
Then Chapter2 and 3, etc...

* Idea of Risk-Reward Ratio :

Here what is important is to link Risk-Reward with Win Rate.
Though AlBrooks emphasises in his preface only Risk-Reward.

* Idea of SetUps :
Above, you were given 2 set-ups based on the Doji.
This is one way of trading - set-up based way.
There are various ways of trading. Understand that this is
AlBrooks approach. And his book is about pointing out setups
and why - in his mind- one should trade such a setup.
 
Now PSYCHOLOGY/SPIRITUALITY :):):):):)

What is the link between a market crash in the Market, and DYING in real life?


compared to DYING ( yes DEATH of the body, being DEAD)

(let's notice the good health, and relatively young age at which these very rich people died).
 
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:eek::eek::eek::eek: what about the one with "eyes issues " and the one with "brain" or "heart" "weaknesses" ?
I am not opening a health shop.
I can't say as I have no idea of the history, nor state of their "issues".
Please pass your request to the priest with as much info as possible,
and if "miracles" are possible, "miracles" there can be.
 
Unexpected Market Crash compared to Unexpected Deaths.

There are come certainties :
- one day, each person will die ( no matter how young, how healthy, how wealthy)
- even when young, healthy and rich : one can die today, or even tomorrow.
or even in one month, or even in one year , etc

The cases above were cases where one could not expect a death :
as athletes, they have normally weekly full medcal check up, and still some
diseases were missed. Others died from accidents ( car accident). Others
from the most unexpected crimes ( here killing by a partner, obviously the
reasoning AFTER teh facts were the person had mental illness that
was not taken seriously).

- death comes in unexpected way.
But one certainty: death is a given.


So the market crash ( or black swan event) we have the same certainties:
- one day, it will happen
- even if the market is great, doing tops, healthy and free raising to the highs: one day a crash will happen
- and it happends in an unexpected way : when one least expects it.
 
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Can we be sure at 100% that when going into bed, we'll wake up the next morning?
==> Can we be sure at 100% that when putting a trade, there won't be an unexpected market event?

Can we be sure at 100% that when taking the car just to go to the shop, we'll not wake up from a car accident, leading to death ?

Can we be sure at 100% that going to the gym, we might not acivate something unhealthy that will lead us to
a dead state ?
 

Unconsciously, we do our best to always forget that we can die at any moment.
Hence the clues of "you're going to die soon".
But, actually, one has no idea when Death will come to call them :
the baby who dies, the infant who dies, the teenager who dies,
the young person that dies, the healthy adult that dies, the wealthy that dies
suddenly.

DeathComesKnocking.jpg


When Death comes knocking : it is a surprise. OK I agree. This is a certainty.
A certainty we do our best to forget. :):):)
In the dame vein, a certainty we do our best to forget, not think about : market crashes,
trade losses. :D:D:D:D:D

One question I have : why do we do our best to make sure we forget about
market crashes, trade losses. In the same vein we do our best to forget that
at any moment Death can comes knocking.
When Death comes knocking, can we say: give me one more hour, one more day, one more month, one more year? ;););)
Now when a market crash comes knocking, can we say: one more minute please, one more hour please ?
Now when a loss comes knocking, can we say : one more minute, please ? :rolleyes:
 
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Al Brooks Chapter1 : the Title Trend Bar vs Doji Bar.
Set-up yestergay were about Doji Bars.

Bullish Trend Bar set-ups :

Bullish Candlestick pattern :
Exemple1
- downtrend + support
- bullish engulfing pattern
Again : long, stop below support
Exemple2: 3 white soldiers bullish candlestick pattern
- after a consolidation ( range) or a downrend.
 
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Al Brooks Preface ( many "considerations", till XVI )

* Uses candlesticks for better risk-reward ratio ( timely entry + smaller risk?)
* Uses ( like everybody according to him?) Edwards and Magee - aka
trendlines, breakouts and pullbacks.

Basically method based on :
( trendlines/breakouts/pullbacks = overall trend ) + Candlestick patterns ( = improve risk-reward).

Let's make AlBrooks EASY to understand.
Then each person can make their own mind about trading this approach or not.
 
One more theme I have to reflect over the next FOUR months!!!!

* One guy ( A) has read the pleasures, benefits and advantages of having a friend.
A friend, he reads will call you once in a while to go and watch a football match, etc.
So much that A decides that he wants a friend.
* Now the question is for some obscure reasons, A has never really had a real friend.
* A thus looks for how to get a friend. And comes across an "friend finder agency" that promises
him that they will find him a friend. Don't laugh : that's my exercise for FOUR months.
* Turns out that A hear that person B is actually the ideal friend one can have.
So A says to his "friend finder agency" to get B as his friend.
* "Friend finder agent" contacts B and say to B to be A's friend.
For some unknown reasons B finds all of this strange, and, make the choice to not get involved
into anything to do with "Friend finder agent".
* So "Friend finder agent" proposes other people on his book for A.
* Things being as they are ( God does he exist): these "Friend finder agent" friendship things always
finish badly ( Does God exist?). So each time it finished, A get even more convinced that B is the solution:
true B did warn not to do "that", B advises to "work on oneself" and to go out with no expectation,
B advises to "trust God" to bring the right friend when God believes A is ready for a friend.
But "Friend Finder Agent" has a business to run, so comes up with a solution.
After spying on B, "friend finder agent" finds out that B is going to one retreat.
So "friend finder agent" registers and coaches all his "friends candidates" to the same retreats,
with twisting facts and stories, manage to manipulate the retreat staff, and
arrange to record, and transmit messages, and so on. Arrange a way to interview
"friends candidates" and B. B realises the setup and leaves.
Few days after "Friend finder agent" arranges a street theater event
where the agent is declaring to B ( without B asking anything), "A is now teamed
with one of my guy's list for friendship". B prays to God to have mercy on them.


I have to interview various persons on :
- what should A do to find a friend
- what do they think about "Friend finder agency" : methods, mindset
- evaluate B's reaction

I started with one person and the answer was :
" One does not do things like that.
We are talking here about friendship"
When pressed further the person said
"For me it is obvious that this is not something to do,
but I can not explain".
Then I insisted saying " yes but it is just creating friends".
The inteviewed person basically said " I'd never accept something like that."


I have to interview one person daily about
"Friend Finder Agency". Some more learning.
 
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