The Trouble With Scribbles
- Thread starter Buy1Sell2
- Start date
What you need to define are the areas where todays support and resistance is based upon todays momentum, not yesterdays. That can only be done as the market noise unfolds, not before. Learn to identify market direction by current activity,lose a little when wrong, and win a lot when right. Numerous other more nimble approaches have since been developed since the time of Wyckoff. These methods look at the current activity and the current momentum, whether the activity is at or near yesterdays range or not. In addition, diagonal trend lines are much more important than horizontal lines which are static through time. --And most importantly never lose more than 2% of Total Liquid Net Worth on any one trade/idea.
I've notice that there are SLA students who are in the observation and sim stage for literally months on end. The more time that is spent in observation and sim, the more bad habits and curve fitting are engrained in one's approach. Once that person finally begins to trade, they will have to unlearn all the the tactics that they think they have mastered. the decision process is much much different once there is real money on the line. One must first be well-capitalized to begin trading and then they need to spend a day or two learning the logistics of the market and then begin to trade. You will only learn to trade by losing real money in the real market. This is what I am demonstrating here---how easy it is to post trades and how easy it is to post losing trades. You must be ok with admission of losing in order to trade successfully. You must lose to learn how to win.
Actually not exactly correct. Trend followers many times buy highs and sell lows in the quest to hold the trade for large gains.