Hey Journal!
Well, I don’t have time to talk now. But, I read something, just now, that blew me away. So, all I’m going to do is paste it here, and tomorrow I’ll explain how it pertains to myself.
I’m just saying…it speaks to me. At this time, on my journey.
Mike
Good Morning Journal!
Good Morning Mike!
Yeah Journal, I was just reading, again, that article. It’s so good. But, I got to tell you. Yesterday, when I read it, boy, did it jump out to me. And, I’m like, it really talked to me personally. And you want to talk about exciting. It was just another one-of-those-things that confirms to me that I need to take this leap. It is right. And my dreams are going to come true.
Ok. That’s nice. I need to continue on here. (Lot’s of things I want to mention)
While it’s still a fresh subject, I need to share who I find extremely interesting. It’s that guy up there. James Clear. Boy, am I glad I ran across him. One thing led to another, and now, I’m subscribed on his mailing list. Each and every week he writes on a self-help subject. This guy is something. He’s smart. I explored his web site. Yep. This is someone who I can learn from. Plus, I didn’t know how well known he is. We’ll call him very well-known. So, let’s see. How would I describe him? He’s one of those thinkers. Kind of like a self-help, motivational speaker. Basically, you can transform yourself into the kind of person we really need to be. It’s all wholesome stuff. He makes you think. What I’ve been doing is going back to the beginning, and reading all of his write-ups. That one was his first article. Ok. So. Yeah. He’s awesome. But, I wanted to explain a little about that particular article, and how it rings true to me.
Well, first off, to be objective about it, I do think that subject can be debated. See, immediately after I first read it, I told Trish (actually read it to her). Well, then started the debate. And here it is. Is this one of those extreme stories of someone who is naturally gifted, or extremely lucky in which, no matter what, they will accomplish whatever they want? And then, is it right to, then, believe that everyone else can become successful, in the same way? Well, I don’t know. But, I guess you really have to find what the point is there. Just because that guy (Branson) took risks, does that necessarily mean that it can work for everyone else? Look…this is interesting. (I just pulled it up, to review it again). He even says it. “Branson is an extreme example, but we could all learn something from his approach.” And this is the point. Successful people start before they feel ready.
Well, you should know me by now, Journal. I’m going to look for a principle. What is it? Well, probably many things. Let’s see. It’s not being a procrastinator. They are active. Actually proactive. They just do something. But, what about the notion that you shouldn’t jump before you leap? Isn’t it a smart idea to know what you’re getting into before you do it? Everybody knows that you need to prepare the way before you do something. Planning is important! Especially in my business. If you haven’t spent the amount of time needed, learned what becoming a real trader entails, then you surely are doomed. There’s truth to the fact that 90 some % of traders fail. Sure. But, I don’t think that statement above is being contrary to that. There’s got to be a balance between being reckless, and smart. I think the key to that statement is about the when. When is the right time, to do something? Do we wait till we feel like we’re ready? Surely, emotions should not be a factor. Plus, we’re talking about successful people here. I’m sure there’s a major difference, in regards to how we feel things, between those who are successful and those who are not. Those who are, probably do not wait around for the right time and when it feels right. The difference has got to be about taking action. Those who have made some serious head way in life, the successful, probably have realized that all they have to do is try. It’s taking that leap. And those, who have never found success, probably lack that thing, deep inside, that causes them to jump. I think that’s the point. Think about it. It’s all about risk! Are we willing to take the risk, to find out what will happen? That has got to be what it is that separates, from those who get what they want, from those who don’t. I can see it. In people. It’s a combination of a daring, careless, risk taker, as opposed to a cautious, careful, hesitant, doubtful kind of person. And it all comes down to what they actually do. Successful people do something. Non-successful people don’t. Oh, and let’s see the other key word. That would be start. That’s not necessarily saying completing, or getting to the end of something. Simply meaning trying.
For me, it means taking a jump. Ok. As I look back at that last paragraph, that’s what I’ve been trying to say all along. Sorry for all those words. I was thinking out loud.
Anyway…I want to jump. I’m going to jump. This is my opportunity. And I believe the timing is right.
That’s nice.
Grab some more coffee, and talk to me about what you’re coming up with, buddy.
Ok Journal.
Alright. So. This is what I’ve been watching.
As you know, I only trade those 3 pairs. And I like this set up. The bottom right is the daily time frame. Bottom center is the 4hr. Bottom left is the 1hr. Top is 1min, 5min, 15min time frames (left to right). I got my 5 / 9 lines on each. Oh, and I prefer the Heikin Ashi candles. But the good thing is, current price is stated as the actual. ( Man, I don’t know how they do that, but I’m glad). So, I feel that this is the best perspective. Oh, by the way, you can see that I’ve added something new. Volume. I’m still trying to figure out a good pattern to work with. Somehow, I believe, it will help me. I like watching it live, especially on the lower time frames. But, what I find more interesting is correlating the 5/9 ema lines to one another. I haven’t laid down any hard rules yet. But, I’m working on it. Something like this. I would start with the daily time frame. If it’s trending in a particular manner, then I would consider the trade.
I need to back it up a little, Journal. It hit me this week. You know, where I really need to start from is, from what I have already built. So, I guess I can give you the path.
All my daily numbers, that I retrieve, results with this chart. This tells me that the JPY, in a macro sense, is running weak. You can’t see it, but they have just come off a strong run earlier this year. And now, in the last 9 trading days, they have turned weak. The JPY has been sold off. (Going up, on this chart, will look the same as it does on the real charts) Ok. So, I will short the Yen. Well then, my only other choices will be to either the AUD, NZD, or CAD. So then, I would then start with the daily time frame, and look at the 5/9 lines there (the above charts). If I see the 5 above the 9, then I know it’s trending high. ( The 5 is the light blue line, 9 equals the dark blue) I would go on down the line, from there. 4hr, 1hr, 15, 5, 1. Something to that affect. Maybe they would all have to line up a certain way, as in a checklist before I decide to pull the trigger. Well, you get the idea. This has been going through my mind this week, as I was watching everything move.
But, take a look, at my 3 pairs. The AUD, and CAD both were trending high on the daily time frame. But not the NZD. So, I was thinking of ruling them out since they haven’t technically crossed over the first hurdle. But, I tell ya, they were moving higher this week. So, I was just wondering if I should make that a hard first rule. But, I want to make note of something that happened this week. On Friday, something happened, late in the day. If you look closely, the AUD, and the CAD’s took a nasty spill. But, did the NZD? Nope. You have to see it on the 4hr charts. Look at the last 3 candles, on each pair, on the 4hr. Well, now that I am thinking about this. What’s more important than the candles? Well, to me, that would be the 5/9 lines. Ok. So, regarding the CAD/JPY pair, those lines crossed down. Pretty close, but not, on the AUD/JPY. And of course, on the NZD/JPY pair, the candles didn’t even turn red. I don’t know, but, something happened. I don’t know if we had the beginning of a change of direction, or just a good correction, and the NZD gained some momentum during this time. It is too early to tell yet, because we would need to see a change on the daily time frame. Don’t look at the 15 min time frame. Top right on each pair. The ending of the week. That will fool just about anybody. According to the AUD, and the CAD, you would think something is changing. But, not with the NZD. They almost made it back up to the top. Pretty healthy. Surely, not according to the CAD. I don’t know. Maybe this is all profit taking, for the end of the week. We all know how strong the CAD has been lately, (and for how long). Maybe everyone just jumped out now.
Well, Journal. I must confess. I did too. I took profit.
Ok. CAD/JPY. So, I bought some (1k units worth) on May 9th. Then another 1k units on the 16th. Yeah, made some pips. That’s nice. But…I’m not too sure I feel good about that. Cause, on Friday, (and I’m being honest with you) for some reason I took a look at the charts, on my phone, at lunch time. I rarely do that anymore. But, hey it’s Friday. And, lo & behold, man…look at those long, red, hourly candles! I seen about 4 of those. So, I immediately jumped. Out of everything. CAD, and the AUD trades. Those have been running. But, my point is, I wonder if I acted out of emotion. I mean, it’s not a planned exit. One of my principles is, ‘wait to the end of day’ price. That’s the true price point.
Look, I’m sorry. I will deal with that. Cause I can’t afford to be acting out of emotions. Maybe I won’t take a look, like that again. Anyway, that’s what happened.
Here’s the AUD/JPY. Pretty similar to my CAD trades. (The third row down from the top is my trades row) Yeah, so, anyway, I might have banked some pips, but nothing matters more than operating out of principles. Planned action.
I do feel bad about that. I’m only hurting myself.
Learn something from it, Mike. That’s all.
Ok.
What else.
We’ll see how it plays out.
I’ll have to find a place that I want to get in, set the order, and see what happens. I think I might just keep with that one pair for now.
Oh, that’s right. I just remembered. Follow the blue line!
So, I’ll check out the daily time frame, on that pair. And since there hasn’t technically been a crossover yet, going up, that’s the point of where I want to get in at. Somewhere around 76.30 - 76.40 range.
Anyway, all of that trade talk has to do with my daily, longer term trading. Not the intraday stuff.
Back to that.
Well, like I said earlier, I think I want some rules, to abide by, having to do with the crossovers. Plus, sticking within each specific time frame. Cause, I know I can mess things up, regarding any diagnosing, if I jump to higher time frames for an exit. In and out on the same time frame, is what I’m really trying to say. I don’t know, maybe I can just use the colors of my Heikin Ashi candles. They sure do seem to stick to some kind of consistency.
So, that, and I’m still trying to figure out how volume will fit into it.
That’s what I’ve been up to, Journal.
Well, one more thing. This isn’t much, at all. But, I am trying to come up with some pretty pertinent questions that I need. On a daily basis. I am working on this, also, Journal. But this is all I got so far. The ideas will come.
Ok Journal. I’m exhausted.
Will catch ya next time. When important events happen.
Mike
Good Morning Journal!
Good Morning Mike!
Alright Journal, finally, I can talk. Just got done with the numbers. Man, that took more time than usual. It’s approaching 4:30 now. I just might need my second cup already. Anyway, how about that market, huh? Geeeez. Make way for the Yen. They’ve come back with a vengeance, this week. Pretty dog-gone strong.
Ok. Yeah. That’s all good and nice. We’ve got more important things to talk about. Journal, I got a lot of news to tell ya. Quite a bit happened this week. So, let’s see if we can unravel this as it went.
Ok, so, at work. Tuesday came. The big guy did pay the store a visit, with the managers only. And thankfully, my boss did pass along our concern. And he told me the answer. He says, “Mike…the answer to your question is YES.” Meaning, we will be able to collect unemployment, when it all goes down. Journal…when I first heard that…talk about joy flowing through your body. It sure did. Oh, I played it cool, on the outside. But, on the inside, a party was taking place!
And the answer to the most asked question, became a little bit clearer. It’s not definite yet, but this guy thinks it’s June 30th. And that seems to be the consensus. It’s matching what the latest, strongest, rumor has been.
So, that’s the latest. And, of course, the talking continues. On a daily basis. As it should. But, I don’t think it should take place when the work is still coming in, though. I seem to be the only one motivated these days. Cause, there’s this not caring attitude prevalent. I don’t know…maybe it is warranted, because of the situation. But, I only need to worry about myself. I work to the best that I can, in all that I do. That’s just how I am.
And that’s probably why I got the talk from my immediate boss, on Friday. Boy…he wants me. Even though we’ve talked before, and I told him my plans. He gave it one more shot. "Can’t you come over to VW? We will make sure that you have a computer in your bay, and you can do what you do, while you still fix cars. Just between me and you.
Man…as nicely as I could, I told him no. He doesn’t know how much of a long shot that is. I summarized it this way, for him. This chapter of my life is over. I’m done with cars.
Geeeez. I’m done caring about anyone else. I’m gonna make my own bed. And it doesn’t involve anyone else.
Speaking of that…Journal…guess what? You’re NOT gonna believe this.
But first, round two. Hold on.
Alright Journal.
Mmm…Mmm…Mm.
Alright Mike. Talk to me.
What the heck am I not going to believe?
Ok Journal. I’ll tell it to you the way it went down.
It was Tuesday. And I get calls on my phone that are bogus. Like, I remember getting one from China one time. Basically, stupid phone numbers. I’m not going to pick them up. It happens to the other guys also. So, just like any other day, Tuesday, I got a couple like that. Even on one of them, I answered it, (hit the button) then immediately hung it up (hit the button again). But then, late in the day, I got an email.
"Hi Mike - Sorry we haven’t connected. I’ve tried calling you a couple of times (just finished trying again) but this time it rang, answered, and then disconnected???
Anyway, I left a message before saying it would (be) great to talk again and I would really like to hear about your progress."
That’s the exact message from the man himself.
TERRY!
He’s still living! I can’t believe it! How long has it been, like 3 weeks since I shot out that email to him? That’s when I first found out that my day time job is going away. I was quite scared, at the time. But, week after week, no word back. Even Trish has been asking me if I heard anything yet. See, I realize, and have been thinking, that I need to surround myself with smart, experienced people in this business. Well, sometime soon, I was going to move on and try some others. But…Terry showed up! ( If you don’t know it by now, Journal, I see him as a God. He’s all-knowing. His intelligence, experience, is like none other. I consider myself lucky to even know him. If he was in the same room as me, I would be bowing down to him. )
Ok.
I’ve been known to get excited. Especially regarding very smart people. But then, couple that, with the excitement that I have for this business, period. It all spells one very appreciated, happy, individual. That’s why, whenever I encounter someone with some serious knowledge, in this business, I get so dog-gone excited.
I revere intelligence.
I revere age.
I revere experience.
Anyway, boy, did I apologize to Terry. We went back and forth with some emails. Then, we finally talked that evening. He called me. Not at the time he was supposed to, but it was ok, even though I just sat down to eat dinner. I didn’t care though. I was just so happy to hear his voice. He’s still living!!!
So, in short, I got to telling him of all the events leading up to the present. So then, he says, "You were a swing trader, right? And now, you want to be a daytrader? Well, have you traded any other markets, than the Forex?
My answer was no. Tried a little with the futures. Actually, had a futures broker account, but never funded it. I don’t think it was the right time, for me, at the time.
Ok Mike. Well, you’re gonna have to learn something about volume analysis.
Man, is that funny he said that!
Look…I don’t know how to put it, but, that’s been knocking on my door lately.
We’re gonna have to get together. You need to know about …blah, blah blah…(I just couldn’t understand, and even remember what he was saying at the time)…it’s not only the when to get in, but the where.
Ok. So, we appointed a time for that. Monday, at 1pm, my time (10am his).
Journal…I’ve been thinking about it. I’m gonna have so much paper ready, for notes. I will be like a sponge on every word he’s saying. Maybe I can tape record all what he says. I don’t know. But, all I know is that I need to GET IT! I want to understand exactly what he’s gonna convey to me.
Needless to say, Journal, I’m pretty excited about that. I’m also wondering if I need to learn another market. Like the futures. I would prefer that one, next. Cause, there’s pretty much everything in there, even the currencies!
And, there’s another thing I’m looking forward to, Journal. I’m off of work this week! Yeah, I put that in like 3 weeks ago. Plus, every year, this is one of the weeks that we always take off ( Christmas is the other one). But, this time Trish won’t be able to take off. She just started a new job a couple months ago. So, yeah, bummer, no doubt! (Believe me, we always want to be together. Honestly, in short, we’re not like most couples. We’re very, very close.)
Anyway, this week, my plan is to start building my office. I have so many ideas of how I want it, so this will be the time to begin on that. And, of course, I will continue to monitor, take notes, even think, on the intraday trading techniques. But, I need to remember, that Monday Me and Terry will have convened. Maybe that content is what I will concentrate on for the rest of the week. It probably will be.
Oh, don’t worry Journal. I’ll have the time to visit you. I will need to spit back out all that he throws down. That’s how I really know if I got it or not. If I can explain it, then I know it.
In fact, that’s what I did when he mentored me a year and a half ago. I don’t know, maybe I should go back and review all of what I learned back then. See, that’s the beauty of print. It never goes away. Well, we’ll have to see what I get, come Monday. Then, on Tuesday morning, I’ll share it.
Oh, and another thing. (Just as it has been, for over 5 yrs now) It’ll still be a 3am wake up time for me, this week. Seize the day! Is my motto.
Ok Journal. Thanks for listening.
We’ll think of something to talk about tomorrow.
coughMarket cough.
Mike
Good Morning Journal!
Good Morning Mike!
Ok Journal. I got an idea. How about we talk some trading?
Whoa Mike…no…don’t do it…
I know Journal, it’s been awhile.
But, ok…I guess so…why not…hindsight is always 20/20.
Yeah…and evil also.
And there we have it. The JPY. Count 5 numbers from the right. We have Monday. It followed the trend. For one more day. And, let me tell you, Journal, I seen exactly when the tide turned. It was Tuesday, early morning. Now, did I know what was going to happen next? Nnnnnnnnnnno. It was all downhill from there.
This is how the week played out.
And, speaking of hindsight, how about that volume? Well, I’m not too versed with that yet. But, in hindsight, it sure looks like everybody and their mother was in on it (one way or the other), at about the London open. It turned out to be an extreme. A top. Like, it won’t happen again, anytime soon.
Again, did I know this, at the time?
Of course not!
That’s why I think hindsight is evil.
Well, let’s continue. Look at the 8 o’clock candle. That’s pretty much when the US comes aboard. It’s the longest red candle. Then, the next 3 immediate candles were some serious doji’s. Small ones. Ok. Then, we got to think about when London is going to end. I think it’s around 11 or 12 noon, my time. If you look at the bottom of that chart, you can see where noon is. Well, looks like the US takes it down. I’m talking about the trend. And, my definition of the trend happens to be when my 2 lines cross, according to the time frame. (5/9 ema)
Look, I don’t necessarily know whether it’s something constructive or not, by trying to understand how the events have played out. I mean, I guess, theoretically, after the consolidation took place during the London, US, overlap, that it could have gone the other way. But, it just went south instead.
One thing that I AM going to learn, is, that I need to be more objective. I can’t hold onto this recency bias. (I’m not sure exactly what it’s called. But, it’s a psychological term.) The definition is something like how we want things to happen again because it recently has been. I mean, I know I was sitting there, having a bias that this chart, for that matter, the whole risk-on scenario, was just going to continue. I was rooting for it. It was going to make my job so much easier, if it would have continued.
I know. Tops, and bottoms are the hardest, to figure out. Everybody knows that. But, when it actually happens, you just don’t want to accept it.
But, I need to!
Journal…I need more coffee.
I’m sorry. I woke up late this morning. Yeah, it’s because we couldn’t go to bed at our normal time. Dog-gone company. Oh, it was pretty late, when they finally left.
Geeeeeez.
Alright Journal, what else can we look at?
Let’s step back and see.
Well, to be honest with you, after Monday’s results, I seriously thought, because of the AUD strength, that they would bring up the NZD. You know, a coming together of the Comms. Nope.
Man…Tuesday’s, end of day results, don’t even reflect the turning tide yet. I mean, of course. What we got done doing up there is such the short time frame analysis. The daily, is a bigger perspective. And yet, the weekly is even bigger. Well, ok, so, what do we got now? Uhhhh…it don’t take a genius to see that the JPY has mad a monster move up to the top. Just look up there to my first chart. See what kind of an angle that Yen strength has taken on? So much more than anything recent.
Alright, how about this? Let’s go through all the possibilities.
–JPY strong–
Given, the quick rise up to the top. Apparently everyone onboard. So much money poured into the Yen. Why wouldn’t it continue? I mean, this very well could be the beginning. At the least, one more week of everybody making money. Why not?
Oh, and another thing I was thinking. We have to see the really big picture. Which is the time of year. We are entering into another season. All the kids are getting out of school. Big businesses are going to go on vacation. It’s the summer season. Things slow down, volatility inevitably diminishes. You know how the market sees these things coming. This just might have been the setting-it-up move. Which spells risk-off.
–JPY temporary strong–
I don’t know. Think about it. This very well could be an, across the board, profit taking move. I mean, I’ve seen it. Usually when we see something drastic and quick like this, it doesn’t always turn out to be very long lasting, relatively speaking.
I think I should bring up my first chart again.
The point here is, that, longer lasting trends tend to be more gradual. What we had here, this week, is kind of out of place. And therefore, needs to be realized, that an up-move can surely happen. It is, all about the possibilities.
So, as a trader, how should I think?
Well, first off, I need to know what the current, latest, sentiment is.
What we have here…is…a risk-off sentiment occurring. Don’t believe me? Check this out.
Where’s the CHF positioned? Yep, right up there! Geeez. I remember a day when they traveled closely with the EUR. What a separation lately, huh?
Ok. So. Back to the point. We have risk-off prevalent. That’s what we do know, now. And, just like always. The question is. Will it continue? And…as always…the answer is…we just don’t know.
But, for me. What am I supposed to do? Well, I follow the market. More specifically, I follow the blue line. Well, let’s take a look at what my latest looks like.
This is how I proceed with it. Bottom right, daily time frame. Technically, the 5 is above the 9, but, just barely. We’ll call it even. This just tells me that it’s decision time. The market can easily bump back on up ( hitting a support level). Or…it very well can be a continuation of the trend. Ok. So. That’s what I got there.
Then I move on in to the 4hr time frame (bottom middle). The trend is down. This is just after a consolidation period. So, fact, trending low. My light blue line is below the dark blue line. (5, 9)
Then, over to the 1hr time frame. We got down trend again. At the present time. I kind of like to see that bottom row of time frames all similar. Surely it’s easier than when one is up, the other down, and the other up.
Ok Journal. This is where I’m at. I’m not going to pretend I have all this figured out. Cause I don’t. I’m still trying to figure out a system. I mean, the idea in my head, is to find a way to follow the trend. I would like it if I can get in when a crossover takes place (5 over the 9). Then, I would want to stay in it all the way until it crosses back over. In each specific time frame. That is very important. I wrote that down this week. Staying focused in each time frame. See, the intra day trading will occur with those top time frames. And, of course, the bottom time frames will last much longer.
Look…I know this is a primitive, newbie thinking, naive, unrealistic, methodology. But…I want it to work!
I don’t care. I like it. I mean, it makes sense to me. See, there is something that tells me where I should get in. Something that tells me that I should stay in, and not do anything. And then, something that tells me I should get out. It’s what the market is telling me I should do. Actually, what the average price is telling me. I don’t know…isn’t this the epitome of trend following? So much so, that you don’t even need to do any kind of back testing, to see that it will work. A trend, by definition, produces pips. And especially, on the higher time frames.
But, the more I am looking at these charts, the more I think I need the help of the colored candles. I mean, they are, in fact, average candles. So, that should help even more. But, I want to incorporate, somehow, that, to tell me when I should execute.
I don’t know Journal. Don’t mind me. I’m just blabbing.
Maybe I will get learned tomorrow. When I meet with god, himself.
I can’t wait.
And I’m not going to hold back.
It’s gloves off. Let’s get real. Let’s learn something.
Will tell you everything, Journal!
Mike
Good Morning Journal!
Good Morning Mike!
Alright Journal, here we go. This is the official kick off to my vacation. It’s nice and early now, on the day everyone goes back to work, from the long holiday weekend. And I am…so…very …happy.
See, whenever I get this happy, I just want to make the most of it. And thankfully, I woke up 15 min before my alarm went off, also. (Due to a bad dream…and had to go to the bathroom bad) But, I’ll take it. I know I got a lot of work I want to get done, during all this time that I have coming to me. But, I’m telling you Journal, I want productivity! There ain’t nothing more important to me, than utilizing my time wisely!!!
And, that’s why I am here. First. Cause, I want to kick start it off by sharing with you all that’s going on. We got lots to catch up on. Plus, this is the best way I know how to get organized. By thinking it through, carefully.
That’s nice, Mike.
Talk to me!
How’d it go with Terry yesterday?
Did you learn anything?
Well, actually, no. Not in the way I was thinking. But, the more I thought about our, little over an hour conversation, I actually did. This is how it went down.
See, before the time came, before he was to call me, I was preparing. What I did was write down some questions that I really wanted answered. Cause, he told me, last time, that he wanted to show me something about volume. But, in my mind, I wanted some big picture questions answered first. And then, maybe to move on in, from there. So, these are the 3 questions that I had written down.
- What would you do differently if you could go back and start all over?
- What would you do, if you were in my shoes, right now?
- How did you start, in the beginning?
Boy, I tell ya, Journal. These are the same questions that we get right in here, B.P.'s. Well, I don’t care how newbish it sounded, I wanted to know. From the man himself.
So, it was in the beginning of our conversation, after the pleasantries, that I asked if he could answer these, sometime before we’re done. And so, I laid them out. And then, he took it from there. This, actually, set the stage, for the entire conversation. (I will be working off of my 5 pages of notes.)
He started from the last question, first. He went on to tell me, basically, his story. How, in 1990, he retired. From his business consultant, business . Blah, blah, blah…helped his son get his career going, as a mortgage banker ( I don’t know, something like that) …but then, figured out what he wanted to do next…which was becoming a trader…Fascinated with it…Started out the typical way, with a million computer screens…very much into it…reading book after book…even getting a hold of each author of the books…but still, crashing account after account…losing a whole lot of money along the way…finding the frustration that ends most beginners…but not giving up…even to the point of meeting with those guys on the trading floor, in Chicago…and finally, meeting the person who turned the tide. Jim Dalton. Now, Terry is adept with computer programming. That is his forte. Well, Dalton had a program already established, called Market Profile. But, for some reason, it wasn’t going to continue anymore. So, Terry, got permission, the rights, from him to take it over. And he did. Modified it, and now, it was his baby.
Now, I’m not going to divulge all of what that entails, cause I couldn’t explain it even if I wanted to, that’s why there’s a book out, explaining how it works. (I have it. Read it. And even subscribed to the software, for a time) Too rich for my blood. One of these days, I will get that again. An absolute must. Man…I need to remember that.
The bottom line here is that Terry found his way of approaching the market. You can say that it’s all summed up by the Market Profile. Oh, he says that he has had very good success, by it. But the point is,
He found his own way! And that is where he goes, regarding the first question.
If he could go back and do things differently, he says that he would not follow in the shadow of anyone else. He says that he screwed up! He believed in others too much. Rather than trusting himself. His premise, all starting out, was to find those who had found success, and to adopt the same thing. He now realizes how much of a mistake that was. It was such a waste of time. He has such the regret of not believing in himself.
And, the whole time he was talking about this, I kept thinking…so…does that mean, for me, my way should be so much more different from his? So then, how much should I really, then, take from him? Even though I think he is the ultimate, all-knowing, master trader, business man, that he is. Because, that is him. But, it is not who I am. Mike Wolski.
Well, I need to be smart about the whole thing. I need to find the principles, that work. And use them.
For my own way. And, I guess I need to trust in myself. Find my strengths, capitalize on them. Find my weaknesses, and strengthen them. Develop my own system. And when I think about it, I’m already like that. If there’s one thing that I simply do not like to do, is do what others do. For instance, do you know what my most hated currency pair is? It’s the most popular currency pair on the planet. And I hate it! I have never, ever done any kind of analysis on it. I haven’t ever pulled it up, to look at it. The EUR/USD. And I know why I don’t like that one. Because everyone’s doing it! Sure, they say it’s the most liquid pair (whatever that means), but, I don’t care. Everyone is doing it, and that’s why I don’t. For that reason only. (Btw…I know what liquid means, Journal)
Anyway, I need to move on, Journal. What else did I get out of our meeting? Well, how about that last question? What would he do if he were in my shoes? Let’s see. He really didn’t directly address it. He did ask me a question, relating. Can you afford to do this, financially? Well, ( and I had to collect my thoughts about it ) that’s the reason why I’m giving it 6 months of a try. And you know what his response was?
YOU BETTER GO INTO IT 100%!!
Do not just give it a try. Do not make it a trial and error thing. You are a trader. Man…you should see how big I wrote those words down, in my notes. I AM A TRADER!
Me and Trish are going through all of our bills, obligations, etc…, planning for the next 6 months. I just don’t know how much unemployment I will be getting yet. But, we’re going to map it out. We understand what’s most important. That’s a given.
In any case, I do understand who I am. I am going to build this business, for myself. You know, he was telling me. That’s the reason why the average client of his, all of who he mentors now, is about the age of 55 years old. He finds so much joy in seeing traders succeed. That’s his primary purpose in life now. He loves relationships. And he has seen it time and time again, where it’s the young people who don’t have their priorities straight. All they think about is the money. For instance, he was telling me of a very recent example. Someone has been a trader for the last 10 yrs. This person comes to him for help (which is how it always starts, with him). They get to a bad place in their career. They need help. And he took him on. He told this person, in the beginning, that he will give him a couple of weeks of instruction. By the end of this time, he will know, for sure, where he will go, from here. As long as he took it serious (Terry takes his business very serious). So then, he teaches him the basics, …basically everything that I’ve learned from his program (which is outlined many, many pages back). Then, during all this time, this person was giving him some very good feedback. Even wrote a letter to Terry about how much of a godsend he his. He’s learning a lot. So, it all looked good and promising for this person. Looks like Terry was going to be successful in developing another real good business minded trader. But…it didn’t turn out that way. At the very end of their time together, this person broke down. And finally told Terry that what was more important to him was his family. He was going to go in another direction, and help his wife with her business. Boy, Terry was shocked. Because of the seemingly good feedback he was just getting from him. But, Terry realized, and told him, that he did save him a ton of money, and heartache. See, because of their time together, he made him discover who this person really is, or should we say, who this person really isn’t! He wasn’t a trader. And that’s what Terry is really good at. Weeding out the real traders from those who are not. He gets to the core of a person.
And when I think of myself, in this context…that’s the whole entire purpose of this journal. Cause I know who I am. And I want it to be seen, in print, how the transformation process takes place. I want to look back, see the mistakes, see the learning take place, and then, eventually, to see where I’m going to end up at. There’s only one place that I want to be at. Unless I am taken from this Earth, I will end up having my own successful trading business.
Ok. Enough talking. I want action.
Anyway. That’s nice.
Where was I?
Oh, I wanted to throw out to you what I really learned, from our conversation. It didn’t hit me until afterwards. My brain processes stuff on a delay. (I am slow)
But, see, Terry has a habit of rehashing stuff that I have already heard (Maybe there’s a reason for that). He, in a different kind of way, talked about the Anchor Trade. Remember that stuff, Journal? (Yeah, now that I think about it. I probably have all the answers that I’ll ever need. Written hundreds of pages ago, when I went through the program). I just need to take it seriously. Well, this hit me. Maybe he’s right. For as much as I like correlations, relationships in the market, for that matter, currencies! I’m a trader, first. (Let’s see if I can break this down.) I’m not a currency relationship expert. I’m not a JPY expert. I’m not a risk-on / risk-off expert.
( Although I do love those things with a passion.) But, I’m a trader! In my mind, I am starting to see a difference. My job, is to make consistent profit from trading. I can’t get hung up on what it is that I trade. And, in this light, doesn’t it only make sense to find what your anchor trade is? Like, what he says, find that trade that you know you can do. Get so dog-gone good at it. Then you can branch out from there. Well, Journal, I’m finally going to act upon that. And I did think of what that is. It is what I chose before. You know it, Journal. It’s the AUD/JPY. Well, hey, I was in the ball park lately, right? I definitely learned a lot about the JPY. Actually, when I look back on what I’ve been working on, I’ve, slowly, been narrowing it all down. I stuck with one currency. The JPY. Then, over time, I finally went with the Comms and the Yen. (3 pairs) Well, now, it’s time for my Anchor Trade.
So, that gives me something to work on this week. I want to draw up some notes on everything that I know about that one particular pair. And it will be the only one that I watch. (I did start that yesterday)
Well, Journal, I do have a lot to do today (now that everybody is gone to work). I have an office to build. Well, gonna start it anyway. Should be fun. And, of course, got to take a nap. Journal, have I ever told you how much I like taking naps?
Nope.
Never.
Sorry, Journal.
Well, I do have to get going. But, there was so much more that I wrote down, from Terry. How about this…
Since words mean nothing, unless you act upon it. I’ll throw out to you some real golden gems. You can probably write a book on each of these subjects. So, here’s exactly one entire page of my notes. (And remember, I had to write as fast as I could when he was talking) Good stuff here.
Anchor Trade – know the probability of it.
- is it obvious? – (a trade) Don’t force it!!
1st job is not to lose money. – Protect Capital!!
- Market must come to you - Get to break even!!
- Get a Free Trade – then manage what the market is doing.
- Find the High Probability Zone – Area where the market pauses, it then either goes with the trend again, or reverses.
See, if there’s one thing I’m learning in life now, Journal, it’s this. We can receive such good information, advise, stuff that we really need to hear. But, you know what? It will amount to nothing, if I don’t act upon it. Eat it up. Chew, and chew and chew, till it becomes ingrained in me.
It’s gonna get personal.
Mike
Good Morning Journal!
Good Morning Mike.
So, how you doing buddy? Vacation been going good?
Talk to me. What you been up to?
Well, I tell ya Journal, my body is feeling pretty good. Time off does wonders for the body. Mind also! And speaking of that, I was very productive this week. That is what makes me really happy! I got a lot accomplished, that I wanted to.
Ok. Well, let’s review the week. It was a short one though, cause it didn’t start till Tuesday. And, in fact, that’s when we kicked it off together, remember? Well, Tuesday ended up being the day that I had gotten a lot of stuff done that I just can’t do when I’m at work. Calling a company…visiting the bank…stuff like that. And also, that’s when I put together my office. That was fun. So now, this is where all the fun work takes place. (Which is different from where I parked it before). So, all I got to say is, it’s awesome. Change is taking place, right before my eyes. I’m so glad. And, it’s about time. It’s been a long time coming. The family is getting smaller. And, before the end of this summer, we’re gonna be kid less. Yep, her last one is moving off to college then (Aug). Man, Journal, this year is definitely going to be the year of change, for us. The only thing that won’t change is where we live at. Because, Trish now, has a completely new job. I’m changing careers. And our house will be empty. Except for our dog, Ben. Well, I guess we won’t be completely kid less yet. Even though he’s a big dog, he’s still like a child. But, we love him, just the same. In fact, his birthday is the 6th of this month. He’s gonna be 12. (Pointer mix) Yeah, I know, he’s getting up there, in age. But, when that day comes…then…it’s gonna get sad around here. But… man… what can you do. That’s life, I guess. Change takes place. Sometimes for the better. Sometimes for the worse.
Ok. That’s nice. Where was I? Oh, well, that was Tuesday. Physically productive. Wednesday was a good day, I guess. That was the day I spent mostly in my office. Watching the market. Oh, I remember. I was writing down a lot of stuff. Yeah, now I remember. I did a study. Guess what it was on? It was on the subject of how a Tiger prowls. I wanted the inside on that subject. I’m sure all traders have heard how we need to be patient, wait for the right time to attack the market. So, yeah, I searched all of the videos I could find on that. Well, that seemed to go on for such a long time that day. I didn’t want to turn into Jack Hanna or anything. But, when I took Ben out for a walk, during this time, I was looking down at him. And he looked like a Cheetah to me! I’m like, man, what a striking resemblance! ( Videos of a cheetahs prowl, and chase, is something else). But anyway, yeah, I was trying to make the correlation to my trading. I did write down a whole lot of notes. That is one thing I like to do, write, write, write. I have papers all over the place with notes after notes on them. Anyway, that was a fun study. You know…we can learn a lot from the animal kingdom. I guess it would be more like from nature. There’s always principles to be found in nature. You just have to look, and see them.
So, I did watch the market that day. But, I didn’t do any kind of trading. Cause, as I look back on it now, the market did quite a turn around. At the time, I didn’t know it. So, I didn’t know how to go about it. I just watched. See, it wasn’t moving along with the trend. I will show you later what happened. But, needless to say, it wasn’t a good trading day. For me, it was more of a learning day.
So, Thursday, was more of a family day. That’s when I went down to my daughter’s house. Got to see the little one. Yep, my grandson, Eric. The little guy is getting big! Not quite one yet, but boy is he close to walking. He can stand up on his own, and take a step or two, but, that’s it. Back on down to crawling. I’m so glad to have been there during this time. These are the moments that will come and go, during his life, that are monumental. There’s nothing like being on the floor playing with him. But anyway, I spent time with them and my son Ian also. We, then, all went out to the mall and had a good time together. Man…I remember those days with the stroller. Diaper bag and all. Seems like a lifetime ago. You know, it’s the little things…I loved watching him gnaw on a small french fry. Ha ha ha! …like forever! He has a few teeth in there. But, it was funny. It’s the little things. That are awesome! Needless to say, it was a good day.
So then, comes Friday. Yeah. This was the day for trading. It’s NFP Friday. This is the day that I want to learn something, about my trading. Boy, I have to say, I was quite nervous. After I bid Trish goodbye, I had an hour to prepare. So, there was a lot going through my mind, during this time. Like…what’s the plan? What do I want to get out of this? You better believe, I was writing notes after notes. But, was I going to practice? Like if it was real? Or, how about try to make some real money. On my live account. So, I was going back and forth on what to do, before time came. In the meantime, all I was doing was writing down the facts of what I know what’s going on in the market now, up to this point. You know, it’s the preparation period. All I know is – where has the market been, and what is the lead-up looking like, at the present time. Man…I’m trying my hardest to be objective about it. I know I don’t want any bias feelings! Facts. That’s it. So, I was concluding that the market ( JPY, for me. Cause I’m trading the one pair now, AUD/JPY) made a turn on Wednesday. I’m talking about risk-on. There’s no doubt there was a change. I just don’t know if it’s gonna be a big correction, or a definite change in direction. For the JPY. Which correlates with the risk-on / risk-off sentiment. Take a look for yourself.
Now, you have to remember, that last day there, I didn’t know the total outcome, at the time. But, on the hourly charts, I know, for a fact, that it started climbing sometime Wednesday. And, it kept on climbing. Even showing on the 4hr charts. And the reason I know this is because of my 5/9 lines, of an indicator. Anyway, that chart is the end of day picture. Cumulative 5/9 pip spread between all of the currencies, against the Yen. So yeah, they’ve been strong, but was showing signs of some serious weakness. Therefore, I had to conclude that the JPY could very well continue weak. And, I remember thinking, am I bias in any way?
I’ll show you. This is the week.
The open is the first red dotted line. And the US closing, thereafter. And…I’m not going to blow it, Journal. I only gave you what it looks like up to 8am, NFP time. First off, see, in the middle there, Wednesday. Nothing but an up day. That is why I didn’t want to trade. It was so against the grain. Well, at the time, I didn’t know what to think. Therefore, I’m out. But, what was I writing down, here an hour before NFP time? Consolidation definitely taking place. Boy…something is going to happen. I also noticed that this retracement didn’t quite go back up to where it started, at the beginning of the week. Uhhh…doesn’t that mean weakness? It didn’t make a higher high. I was wondering about that. And also, I wrote down the very question. What correlation does the USD have to this pair? If it was going to be good news, then what? With the USD/JPY, it would go up. And the JPY down. So therefore, risk-on right? Cause the JPY is risk-off. But, if the USD goes up, then the AUD would go down? Right? The commoditity currencies would suffer. A higher USD leads to lower commodities. I don’t know. Man…I was going back and forth about this. In the end, I couldn’t come up with a determination about it. I finally said "it doesn’t matter! Just watch my chart! So Journal…that’s all what was going through my mind, at the time. But, honestly, I was expecting it to go higher. You know why? Cause, in the minute chart, leading up to time, it just seemed like there was a bias to the upside. You would have these spikes to the upside. And I was thinking that some (money) wants it to go up. Again, through and through it all, I wanted to be unbias as much as possible.
So, time was ticking. It was getting closer. I was getting more nervous. Kept thinking about what I should be doing. Practice, or make some real money. Well, it was about 10 minutes beforehand, that I went on my real account, and decided to put in a limit order. Of course, I always start out with a pretty dog-gone small amount. 1k size. And where you ask? Well, look up there at the chart. You can plainly see where the resistance level is at. That is between 82.50 - 82.60. So, I placed it at 82.62. I figured, if I was right, then that would be a good start. I just would have to remember, that if it goes south, I would take it out. But, I wasn’t going to watch on my brokers’ chart. It was open though. So then, the plan was to watch what happens on my TradingView chart. I was going to practice. See, the way it really turned out was pretty unplanned. I realized what I should be doing as it all unfolded.
So, time came. I’ve watched many NFP’s before, so, this wasn’t any real big surprise. Sure, the final direction always is, but, not the back and forth that happens beforehand. But, the spike happened. And I remember thinking, within the first couple minutes, how there seems to be some serious indecision going on. It was like a whole lot of people (money) was wondering which way is the direction? It was interesting. Mind you, I was only occupied with this one pair, not what the USD was doing anywhere else. Maybe that was a good thing. So, I was focused. I kept an objective mind to it. You know why? I wasn’t emotional during the entire ordeal. I was mostly worried about what I should be learning, more than anything.
But, guess what, Journal? It did go the way I was thinking it should.
That’s the 1 minute chart. You can see the spike. And, isn’t it interesting how it wanted to go higher just 3 minutes before time? I think it is. So, I guess it took about 10 minutes or so, into it, that I got the idea. (Like I said, this was all unraveling as it went). I was like, Man…this is the time for me to practice. I need to take full advantage of this time. And that’s precisely what I did. This was the plan.
- I’m going north. Only.
- I’m getting in at the beginning of a crossover.
- I’m getting out at the reverse crossover.
- 1 min. chart.
- Clues, for the crossovers, to watch:
----doji small candles
----changing of the colored candles
----diminished spread
- Mostly, wait for a definite crossover.
Well, Journal, let’s put it this way. For the rest of the day, I had such a great time! Talk about fun. This was the first time that I got a real sense that I can do this. You know why? Because I really didn’t have a losing trade. There was one, but, it was a mistake. It wasn’t a planned one. Stupid mistake. Didn’t lose much though. But look…to me, this was not about how much money won, or how much of the account got higher, or anything like that. It, simply, was all about how effective I can get in on a crossover, and get out at a crossover. Well, honestly, I know I can do this! It feels so right. I know I need more practice though. Just to get comfortable. I did quite many hours for the rest of the day. Not all of them, but, most of them. It’s a technique. And I’m gonna get good at it. Especially after what I did during this first session.
I do realize, that this was an almost no brainer of a market sentiment, going one way. I know the market won’t always be like this. But, what I’m really doing here is this. I’m following average price. Doubly. Cause, remember, this is on the Heikin Ashi candlesticks. And, of course, my 5/9 lines, which are where the average price has been. It’s so much smoother than what the actual price is doing ( I couldn’t imagine trying to follow live, actual price).
So, when I think about this. It was my break-though. It’s the way I get in, and get out. I follow. I don’t have to guess. And, I don’t always have to be spot on either. There’s some forgiveness. Hey, even if I lose every now and then, over the longer term, hopefully, I should be greater than 50%.
Man, that reminds me. Guess what? Do you know what the kill rate (success rate) for the Cheetah is, for getting it’s prey?
-----50%------!
And for the lion, it’s soooooooo much lower. Like 17%. King of the jungle…Big, but no agility. One shot is all they have.
Anyway, if you look closely, on the chart up there, you can see where I got in at, and got out at. I took these other pics also, of my time during this session.
And trust me, I’m not concerned about the money yet. That is just a statement of being in the green, that’s all. That was every trade that I made during NFP and on, that day.
I do have much more to learn. And I want to touch on these things. Tomorrow.
- Specific time frame trading.
- Position sizing.
You know, I’ve always had it in my head that I need to get to the bottom of my money management system.
But, I’ve wanted to get my technique, system, way of trading down first. And, as you see, it definitely looks like I can move on to it now.
That also needs to be addressed when I bring up that other point also.
So, Journal, we’ll talk more about this stuff, tomorrow morning.
Mike
Good Morning Journal.
Good Morning Mike!
Whoa…what’s wrong buddy?
Nothing, Journal. Nothing at all.
It’s only the last day of vacation. And the party’s pretty much over now. Next thing you know, I’ll be back to the 'ol grind. I don’t know, Journal. It is kind of depressing. Actually, when I think about it, every single year, for many, many years have I always, mentally, struggled with the going-back-to-work thing. I mean, who really wants to go back to doing something that you just don’t want to do? I mean, honestly, I hate it. I hate cars. I hate people. I hate being the slave that I am. You know?
Come on, Mike…You know what’s right around the corner.
Cheer up.
You only have a month to go. Then, it’s freedom time.
Yeah, I know Journal. I was just expressing all that to Trish yesterday. And, to think back over the years, it has gotten easier. Boy…I do remember, I used to get really depressed. Like clinically depressed (it felt like). It was bad. I don’t know, somehow I got through it. But, over the years, it did get easier. Being with Trish helped a lot. Cause, I could always look forward to coming home to her. See, I guess I always need something to look forward to. To get me through. And then, when I found my dream job, career, that’s what’s been carrying me through, lately. Talk about looking forward to something…this is definitely it. Cause, this is what will be the substitution. I won’t ever have to feel these feelings anymore. But, you know how long of a journey this has been. Right? Pretty dog-gone long. And the thing is, with this venture, you don’t even know when the time is going to come. I remember I had to be content with the notion that I will not know the when, until it comes. That’s always been a tough thing. Not being able to know when the time is going to come. Man…I remember going through a period when I thought I knew the when. This was back when I was at around the 3 yr mark. At work, I made up a calendar. It had a ton of boxes on this piece of paper (2, actually). Everyday, I would cross off a box, for the day. And, the guys would even tease me about it. “So Mike, how many days do you have left?” And I would say, “Only one thousand blah, blah, blah days.” Surely, they would laugh about that. But, I didn’t care, whatsoever.
My point is…I need something to look forward to!
But, now what. Yeah, I should go back and make up another calendar. Boy…one guy in particular, would remember when I used to do that. Well, it probably won’t go over so well, with him now. Cause, he’s taken the situation pretty hard, lately. But hey, who’s laughing now? I have been preparing for my future. He hasn’t. In fact…I’m the only one who has, in that entire company.
I’ll just keep this to myself. And I have been, there, at work. But, every now and then, I would say, pretty softly, that this day can’t come soon enough. So…in the meantime…it’s like…20 something days and counting!
Alright Journal. I’m sorry about all of that. But, I do feel better now. Thank you!
So, let’s see. I wanted to talk about a couple things. Let’s get to this. Man…it’s getting lighter out, already. Geeez. Well, the coffee is going to have to wait a little. I need to start a good subject first.
Ok. So. When it comes to my trading, it really seems to come down to only 2 major parts. Well, I’m talking about the complete strategy. As opposed to my trading business, which entails much more than that. (That’s all outlined a few hundred pages ago)
- How do I navigate my trades?
- How much sizing?
Well, let me start out by mentioning my idea. See, last Friday, as I was trading, it kept hitting me. The method that I use to get in and out can be used on all of the time frames. So, why wouldn’t I? Take a look.
I took off some stuff so we can see it better. But, from the top. 1m / 5m / 15m . Then bottom row, 1hr / 4hr / D. Just take a look, for instance, at the top right 15m chart. Man…I always ask myself, why cannot I be in that trade, on that time frame? There’s no crossovers! I mean, that’s the only thing I’ve been working on, on the daily time frame, for how long now? Why can’t I do this on each and every time frame? Journal…I want to know. It’s the same exact method for getting in and out, no matter what time frame.
Ok, Journal. It’s time. Be right back.
I want you to think about that, ok?
Ha.
Alright Journal. Better now.
Do you know what keeps going through my mind, regarding trades? Terry. Telling me.
You want a FREE TRADE.
Let’s see how I can explain that. That means that a trade is in profit. You not dealing with a loss. It’s a positive. It’s the good place that you always want to be in. And then, the worst thing that can happen, is it moving down to break even. And that’s why he says, that it should be your first concern. That’s how you protect your capital. It gets more risky the more rope you give it to run. So, the priority ends up being a defensive tactic. Which only makes sense. You would build from there. And think about it, all of that, is a specific strategy in itself. How do you get off the ground? It is all common sense. It’s building something. The most important blocks are those that are underneath. And who doesn’t know that the foundation is what’s most important.
Ok. That’s all good and nice. Where were we?
Alright, after rereading that nonsense up there, it really comes down to this. I’m gonna find out, personally. Trial and error. This is my way. Whether anyone agrees with it, or not, I don’t know. It’s just what I see. It captivates my attention. For as simple minded as I am, it’s the only thing that makes sense so me. I mean, look, it shows me where I should be getting in at. When I should be staying in at. Where I should be getting out at. Sure, the delay…is the tough part. But, with the clues, and with more experience, I believe I can do it. Plus, given the fact of the very nature of what a trend is, there’s forgiveness. Who ever gets in at the tops and bottoms of a trend anyway. Consistently? And, the only other possibility of ruin, is during the non-trending times. Whipsaws. Of course. Well, all I have to say to that is, I’m going to have to learn when those times are. I think I alleviate a lot of that by the fact of paying attention to what the longer term trend is. If we’re at tops, or bottoms, on the daily, or even weekly time frames, then, yeah, back and forth it will probably go. Cause it needs to make up it’s mind, during those times. And the other thing is, that’s the very reason why I have chosen the JPY to be my most paid-attentioned-to currency. Who doesn’t know that they seem to be either very hot, or very cold. So, I don’t know, it seems to make perfect sense to me.
Mike, buddy, why does it seems like you’re always defending yourself?
I know, Journal. I’m sorry! I guess it’s just my way of making sure that I’m on the right track. Cause, if I rehash all of the arguments, and if something doesn’t line up and make sense, then maybe I could catch it. See, I haven’t come across anyone who scribes to this very particular way. But, on the other hand, I have read that it seems pretty impossible to do it. But, you know what? I guess that fits me. I would rather go down a road that most people don’t want to, than not. I want originality. I absolutely hate doing what other people do. And, when I have learned, of the endless possibilities (in this business), and that you need to pick the way that fits you…well, I’m gonna use that very freedom.
And this is a good time to enter into the last major subject that I need to talk about.
What about this risk only 1% - 2% of your account on any one trade?
See, the very first feelings that I encounter, when I hear this, is one of defiance. Like I said, it’s due to the fact that I don’t want to follow. Man…I remember Terry, long ago, solidified that sentiment in me. Cause, he said something like this, "you know you heard something like ‘only risk 2% of your account’…well, that’s b** s***. I want you to ask ‘how much in dollar amounts do you not want to lose?’ Basically, he was making the point that just because everyone says to do something regimently, you don’t have to. Think about it differently.
Well, that’s my very first feeling about that. It’s not the ending of my thoughts though. I then think of the purpose behind it. That is a good way for newbies to stay in the game much longer. I mean, it makes sense. It’s like a barometer of a scale to pin your account to. Even literally. And it will even show you how risky trading can be. Which is very. So, yeah, I understand the point behind it.
But, I went down that road already. I learned a big lesson, back from when I started this journal. My 2 major crash and burns are all documented. So humbling. But, I learned. That’s why I haven’t gone belly up on this account yet. I guess, it’s been like, I was able to learn my way through (finding my strategy) without crashing by only putting on the smallest size possible. I don’t know, it just kept me in the game.
Anyway, enough babbling. Where am I going with this? Well, I need to find out what size I should be using? Not only that, but what about each time frame I get in with? Different? Well, the whole point of that nonsense, was to say that I’m not going to automatically set a 1% or 2% figure on it. What I know I need to do is ask the important questions.
By the way, Journal, this is what I’m going to set my hands to, in the coming days.
- How much of my account is at risk? At any one time.
- What’s the ‘dollar’ limit threshold that I will not accept going below?
- What’s going to be the planned size on each time frame?
- What about after break even? Will I put a cap on how much to make?
Journal, I don’t even know all of the questions to ask, yet.
But, this is where I might start from. Looks like I need to show this again.
This happens to be a 5k account, roundabout. I was trading each trade with 50k position sizes. Well, that’s all good and nice. What does this mean? I don’t know. But, it’s a start. But, what I did do, is add all these up to see what kind of increase my account took on. (Trust me, I didn’t plan on any of this!) Ok. I’ll be honest with you. This was my only thoughts on why I came up with that particular figure. I planned on 10k size trades to be matched being on the 4hr chart. Then I planned on a 20k size on the 1hr chart. 30k on the 15min chart. 40k size on the 5min chart. And 50k size on the 1min chart. So, therefore, when I decided to work the 1min charts, well, that correlated to 50k position size. Look, I didn’t run any numbers or anything. I just plainly went with it, like that. That’s all.
Back at it. Go ahead Journal, run the numbers there. It came out to be, in total, 5.07% increase.
Yeah, I know. That’s what I thought when I first found that out. Uhh…that’s a lot. 5% in one session? Ok. So, now what? What do I do about that? I can’t possibly think that I can do this every time. I’m not that dumb. So, do I even go as far as to think that this can be my best? Well, I don’t know. It might not even be fair to think that, also. Maybe I’m a genius, and I don’t even know it. Hmmmmm…
Ok. Time to wake up. I’m not. Who do I think I am? Well, now that I think about it. SINCE, I just don’t know, why don’t I just keep practicing this? I mean, I still have some time. Each morning, when I think it’s appropriate to trade, try it, this way. I don’t know, maybe I will see what my bad days will look like. Well, I don’t think it’s gonna work, because, don’t forget, I only have a couple hours in the morning time. That won’t be fair. I will be boxed in, with the time constraint. But, then again, all I’m going to be doing is trying to find out, ON EACH TRADE, what will be my average draw down. That should be some good info to know.
Alright. I got it. I need to keep this in the proper perspective. Instead of thinking of the entire session play, I should keep with the individual trades.
I have an entire month to practice this. I need to have this data, at my disposal. In fact, I think you would call this forward testing. And then, it would only make sense to adjust accordingly.
Journal, I’m getting lost here. Sorry. It’s so late in the morning.
We’ll be in touch.
Mike
I don’t think that it is crazy to spend huge time in demos. It is not that a trader will spend time demos for only learning purposes. I use demo so often to evaluate the effectiveness of my trading strategies even though I am not a naive trader. Nevertheless, I appreciate your initiative that you are sharing your journey detail with us and hope that it will encourage the beginners.
Good Morning Journal!
Good Morning Mike.
Nice to see ya during the week!
What’s going on?
Well Journal, me and you have just entered in a new era. Times are changing. No more talking. I’m tired of the babbling.
Whaaaaat?
Since when?
Ha! Ok, look. It’s time to get in the trenches. I started yesterday morning. And after I was done, I got the idea that I need to report to you how it went. This is gonna be an on going thing. You know I don’t lie to you of how early I wake up, and get to work, on my business, a couple hours before I finally leave for work. So, let’s stop the talking, and get to the reporting.
Well, I had such a good time trading yesterday. Man, is it fun. Oh, and one more thing. I don’t understand why people all say that there is so much noise on the smaller time frames. I mean, of course, I used to agree with that, until I entered in and try to navigate it myself. Honestly, I think it all makes perfect sense. I believe the market is very efficient, and every move has a definite purpose. So, bottom line is, I don’t think it’s noise at all. Especially when you view it on an objective level. It all seems pretty efficient to me.
Mike. You’re talking again.
Sorry Journal. I can’t help it.
Alright. Here we go.
First off, when I opened it all up, yesterday morning, and checked all what’s going on, I determined it was the right time to trade. As opposed to this morning. I just got done looking at it now, I think it’s too top heavy. So, I figured, on the mornings that I won’t be trading, I could catch you up on how the previous session(s) went. But, the plan is, to watch and learn, if I’m doing it right or not.
Monday was a continuation of what took place on Friday. Risk-on happening. Oh, another thing. I might need to change my notion that Monday’s shouldn’t be a trade day. Hey, if it’s happening, then why not, right? So, I’m not going to make that a hard rule anymore.
Ok. So. Bear with me. This will get better, but, all I have now for you is a summary of how it all went down. I plan on taking some screen shots as it goes down, in the future.
AUD/JPY. 1 minute chart. I opened this just sometime after 3am. The candles were moving down. I wish I would have shown all of the other ones (larger time frames) which told me that we were in a bull market. But anyway, that was my determination going into this. I’m looking for north. But, right now, I’m seeing some good pull back. And, I’m waiting for the next crossover, for up. That’s my goal, getting in on the crossover, until the opposite happens. Well, you see my first trade there. Showing signs. Green candles. The spread is diminishing. I get in (look closely at the green arrow, on the bottom of it). But, (and believe me, I made many notes all the while I’m trading) it doesn’t cross over up. Back on down. Then I jump. Took a loss. At the red arrow. So, I try again. And get fooled again. But, at least I don’t let it go too far from me. But, the whole time now, I keep saying to myself, that I need a crossover! I need to be more patient. So, I try it again. One more time. Again. No eventual crossover. Ok. It’s alright. I jump. And truthfully, I am not all upset during all of this. I understand there will be losers. It’s the price paid. So then, I definitely think this pullback is on the major side. During this time, I’m thinking I just might not trade anymore. Maybe the whole premise is wrong, and the tide has just turned. Well, I wait it out, a little longer. Watch it move down. But, it does look like it’s at a support zone, on the other higher time frames. Ok. Then I’m getting some good green candles. The patience is paying off. I’m gonna take this one. And, it doesn’t take long for me to see that an eventual crossover take place. THAT’S ALL I WANT TO SEE. Well, it’s going good so far. And, I HAVE to be patient about the reverse crossover. It doesn’t quite take place. I wait it out. Good thing, cause it’s moving up more now. The second leg. So, now, I’m through the hard part. I’m in a free trade. The trade gets easier to stay in now. So, up and up it goes. Well, that is what helped me to stay in it when it is looking pretty shaky there towards the end, with some red candles. But, I’m good. No sweating. My purpose is to stay in it till I see a definite crossover. Well, I’m not seeing one, so, I stay in. Well, because of time constraints, I knew I had to jump soon. I was planning on getting out sometime shortly after 5am. And that is the reason why I jumped. It wasn’t because of me thinking I need to see a crossover. Cause, if it was, then that’s not following the plan.
Ok Journal. Talk about time constraints, it’s time for me to go, here and now.
(One of these days…I won’t be running like this, anymore!!)
Here is the other pic. You can deduce all the info on it.
Bottom line…I had such a good time trading that morning.
This is fun!!!
Way more to come Journal.
Mike
Good Morning Journal!
Good Morning Mike.
Alright Journal. Let’s do this again. I’ll show you how yesterday morning went. Today is not a good trading day for me. Let me show you why.
This is the very thing that I look at, when I open it all up. And let me explain my thought process.
Bottom right is the daily time frame. We are in an up trend. (Don’t forget, I play with Heikin Ashi candles)
It’s pretty much at some kind of resistance level, right? Well, there does seems to be a slow down going on now. Cause look next door (4hr chart). Well, that red dotted line going down is the US close, basically the end of the trading day. So, that seems to be where the top took place, cause it’s heading down from there. Right? So then, it shows that on the 1hr chart also (left lower). Yep, pretty much at the start of the Asia session. I think there was some Aussie data that just came out. Ok. That’s nice. So, I would think like this, as a very quick summary of those three charts. 'UP, UP heading down, DOWN). Plus, it’s Thursday. That’s always a factor, about what day it is. Well, for that matter, let me back it up a little. Take a look at that 4hr chart (bottom center). You can quickly see how each day went this week so far (red dotted lines down separate each day). Monday was an up day. Tuesday was a down day. Yesterday was an up day. And today looks, so far, down. Anyway, in my mind, the trend is on the up. Sure, I thought about trading it for going down. But…no. I believe in the integrity of the higher time frames. Maybe if I start seeing a red candle on the daily, I might go there, that way. But, there isn’t one now.
Ok. That’s all good and nice. The top frames are primarily for my intraday trading ( 1min, 5min, 15min).
Let me show you how my trading went yesterday.
This is the shot when I first opened it up (shortly after 3:30). Ok. But first, to back it up again. What are we working with? UP, UP, & UP. That’s my summary from the bottom time frames. So, sure, it’s conducive for trading. On the 15min, looking a little shaky. The spread of my 5/9 lines are diminishing. It looks more clearer on the 5min. But, right now, it’s going down. Just look at the 1min. So, I’m waiting. Basically, I’m going to focus on the 1min time frame from here. Ok. That’s all good and nice. This is what takes place next.
Well, what do we have here…A crossover. Ok. So, I take it (arrow shows it). Meanwhile, I do realize that on the 5min, the trend is down. Also, on the 15min, technically, it just crossed over. But, I’m trading each individual time frame all by itself. So, anyway, I’m in. Following the plan. Let’s see what happens next.
Follow me. Top left, I’m in. I’m following the trend. Waiting it out. Getting some serious spikes downward, but keeping cool. All I’m doing is waiting for the next crossover. Well, it happens. The second candle from the end really moves down. Ok. Action time is imminent. Then the next candle…yeah…that tells me it’s over. Time to jump. And that’s what I do (if you look closely, it’s the red arrow on the top, pointing down, on that last candle, that proves it). Ok. So, we have a loss. Oh well. I’m not upset. Cause I followed the plan. Simple as that. In the end, I know I’ll get it. Well, what happened next?
Journal…look right there, in the middle . I jumped at 4:16. Look what the very next candle does. I’m like…are you serious??? Well, I keep my cool. I wait it out. And guess what…no eventual crossover took place! That’s what’s most important to me. So, only 5 more candles later, that’s when I get in again (the last candle there). Surely, we should be getting a crossover now. Alright…roll the tape.
Yeah, well, I wasn’t spot on, with the crossover, cause it didn’t fully take. So, I hang in there. Well, well, well…we have movement. And it’s the way we’re going. Nice.
So, I have my eye on the 5min also. Cause, I do want practice on those higher time frames also. So, take a look. Uh, yeah, it does look like a crossover is happening. And that’s what I do. I’m in on that one now, also. The arrow is there. And on the 15min, I’m not interested. This is because I don’t have that much time. Therefore, I just can’t. So, I will only be playing on the 1 & 5. Ok. Let’s move on.
On the 1min, riding high. All is good with the world. Then, now, it’s coming down. Ok. Well, out we go. Got the crossover. So, now, I still have the 5min trade running. Look there, it’s still on the up. So I stay in. Oh, I wanted to mention, that my position size on that one is 40k. I told you before how I am playing the sizes on each time frame. 1min - 50k, 5min - 40k, 15min - 30k, 1hr - 20k, 4hr - 10k. And that’s just to see how it affects the account. Will adjust accordingly as time goes by.
That’s nice.
And this is the end. 5min trade over. Why? Crossover. It just didn’t work out. Oh well, can’t win them all. It was getting late anyway, cause I had to run. Well, I found out later, that things moved up very nicely that day. Oh, I would’ve killed it that day Journal. But, what can I do…I’m a slave to the workforce.
But, those days…my friend…are coming to an end.
JUNE 30TH.
Speaking of that…I got to run now Journal.
This was the bottom line.
See ya next time Journal!
Mike
Good Morning Journal!
Good Morning Mike.
Well, let’s see, Journal. Since I’ve been given you blow by blow already, on the trading, it kind of doesn’t leave me with much else to talk about. I’m about …
Whaaaaaaat.
You speechless ?..yeah right.
Talk to me, goose.
Ok Journal. You ready for this? Check this out. You are not going to believe what happened last night. I got an email. It was from the man himself. (You know…the one who walks on water.)
Man, I was excited to hear from him, already. It was only like a week ago that we conversed last. Well, this was a follow up. He wanted to know how the transition was going. So, I gave him details, of where I’m at. Basically, all going very well.
But, why I got floored was, because he said that he was thinking of me in what I’m about to do, my transition. He says that he has a friend who’s a very good trader, and mentor. Would I be interested in meeting with him?
WOULD I ? Are you kidding me???
Is the grass green?
Is the sky blue?
Is a frogs butt water tight?
OF COURSE I WOULD!!!
Trust me, I conveyed a yes to him. Looks like my ideal plan just might come true. I know the importance of surrounding yourself with smart people in the business. I have read that in a book recently. No one is completely self-made. No one can take complete credit for what they have accomplished. Oprah…didn’t become a billionaire on her own. Steve Jobs also. It was who they knew, along the way. I think it’s sort of a principle. Two minds are better than one. Oh, and how about the proverb, that goes something like this. One strand (of rope) is good. Two strands, is better. Three strands, extremely hard to break. It is a principle of life. We need others.
Ok. That’s nice. Is common sense wise. But, the reason why I make it such a big deal is, because of the nature of this business. Trading. It really is an individual venture. It’s you and the market, only. No one else involved. All of the decisions made will not affect anyone else, but you. We can’t even possibly put blame on anything else, but ourselves. And isn’t it funny, that you will hear of someone blaming the market, or getting mad at it, instead of taking on the personal responsibility. I understand, though. That’s human nature for ya.
Evil.
We are.
Naturally… evil.
Anyway, this is one of the reasons why I’m so attracted to this profession. Individualism. Hey, just like Terry said. You need to discover your own way. Not anyone else’s. And so, I’m so curious as to who this person might be. Man, do I hope he’s a currency trader.
“Please God, please God, please God.”
We’ll see, Journal.
So, let’s see, what else is going on?
Well, at work, it’s all over at the end of this month, the 30th. And I will be working every day, including Saturdays, till the end. That started yesterday. Boy, are we slowing down. I mean, I couldn’t make any money. When there are only 4 cars on the schedule, what can I do? And that’s for the 2 of us! It was not a good day.
This past week was the last time that all of us Audi guys will be together. The vacation times are going to be used up, between the others. So, we seen this coming. We made the best of it, last Wednesday. See, we all went in together, a couple years ago, and bought a nice outside grill. And every now and then we will do some grilling, for lunch. You know, burgers, dogs, etc…Well, this time, we went all out. We bought some steaks for the grilling. We did have a nice long lunch time. One guy even brought in a deep fryer. We made some tater tots and perogies. Yeah, deep fried perogies! It was awesome. Oh, but the steak…mmmmmmmm…you should have smelled the shop. The VW guys, across the shop, were pretty jealous. Oh, I forgot about the ice cream! Yeah man, we made the best of that lunch. And there’s nothing the boss could do. He just let us do what we wanted. Hour and a half of a lunch! Oh well. We’re on the slow side, anyway.
Yeah, we’re pretty tight. I mean, it’s been well over 10 years being with them. I’m thinking between 12 - 15. They all came after I did. But, we reminisced of the good times. And the bad. See, we all try to help one another through the tough jobs. Some, can be such a nightmare. Basically, somebody will always have your back. Comradary can be a beautiful thing!
I see what I wrote, back up there, a little bit ago. I do have that side of me. Being an indivudual. A lone bull. But, what can I say? I do enjoy, also, good friendship. I guess it’s what’s needed, given the workplace environment. To get through.
But, I tell ya Journal. I am so ready for the change. I know, because the anticipation that I have for the end of the month is pretty great. This is going to be a dream come true. It will be so surreal. This will be the day that I have dreampt about for a long time. It cannot come quick enough!!
Alright Journal, time out on the field!
Ok. Well, now what are we going to talk about?
Uhhhh… the market?
Well, I wasn’t planning on it. First off, I give you the play-by-play during the week. So it doesn’t leave me anything left, on the weekend. Secondly, I’m focusing on the one and only pair. Remember? Anchor Trade. I guess the nature of that bumps me out on trying to see where everybody else is at. Maybe I’m losing some of my aggregate thinking, because of that. I don’t know.
Ok. Well, I’ll try. I’ll give you my big picture thinking. Let’s bring it in.
So, what is?
Well, the JPY has been weak leading into the month, and continuing. But, towards the very end of the week, they’ve strengthened up a little. You know, I’ve realized that I don’t put a lot of stock into the news these days. It’s nice and all, but, regarding my trading, it’s not needed. But…I’m thinking that the current events taking place should be deemed important. Trump is meeting with the G7 in Canada. And he’s going to meet with that North Korean Hitler this week. So, between the trade thing, and how the relationships are shaping up in the world, because of him, things just might get interesting. It just seems like something really good or really bad might happen. This week. And we know that when things go sour, the JPY can get volatile. I wonder if that’s the reason why, at the end of the week, they have gotten a little bit stronger.
Then again, the Yen was due for some kind of correction. Things don’t go straight up, or down. Anyway, in this case, I think it’s good to have some of that awareness. Of why.
That’s nice. What’s my other table showing?
Well, for me, I think the most interesting thing is how the CAD separated quite much from the 2 brothers, in the Commodity context. You would call this a divergence. I mean, look, at last Thursday. Their on both ends of the spectrum. It’s just interesting. Just as history has shown, they’ll come back together. We just don’t know if it’s going to be on the top end of the scale, or the bottom.
Then, look at the JPY. They go from low, to high, back to low, and now climbing again. In such a relatively short time! The market is definitely undecided lately. And that’s why everyone here in B.P.'s knows to tread lightly! Or should anyway.
Well, that’s the background for you.
And, as I’m trying to find anything else interesting, I do see something on the weekly line-up. The USD is number 1, but look at who’s number 2? Yep, the JPY. For 3 straight weeks. Well, all that tells me is that over the long run, there’s been a lot of buying of the Yen. Relatively speaking, compared to the others. Their strength has not completely diminished. I think of it as big money not writing them off. They are still in the cards. Or should I say, still in the playbook. Well, for those who think that the higher time frames mean something, there you go. I don’t know where I stand concerning that ideology. I don’t know…if someone is ranked high on the higher time frames, it just tells me how long they have had strength. As opposed to whether I should think that that has any bearing on the future. Like that they will therefore stay strong. I think maybe I used to think that way. But not anymore. It’s history. I will take more stock on what the daily time frames are saying to me, than anything higher.
I’m sorry Journal, about the babbling. I could be dead wrong about it all. But, there’s a point in there somewhere.
Alright Journal, looks like I’m done. I just don’t know what else to talk about.
Don’t worry, if any kind of action takes place this week, I’ll show you the play-by-play.
Mike
Good Morning Journal!
Good Morning Mike.
Happy Fathers Day!
Thanks. I’m excited. I’m gonna see my 3 today. We all are going to convene this morning at 10. I am so looking forward to our time together. It will go something like this. We will all show up at Sarah’s house. That’s when I get to play with the little one. Man…I hear he walks now. Wow. Ok. Anyway. Then, around lunch time I’m gonna take them all out, for lunch. And we don’t even know where we will go, yet. That always gets determined last minute. It never matters to me. Wherever they want. Over the years, I probably have taken them to every single fast food restaurant there possibly is, out there. It’s the suburbs. Their everywhere.
Man…I remember when they were little. I always told them that we will eat like Kings. And over their entire lives, it did hold true. See, back in the old, old days, Kings could eat absolutely anything they wanted. Think about it. Whatever they could think of, they could get it. And even, for as much as they wanted. No limit. To anything, and everything. Well, that’s how it is here, in today’s world. All you have to do is think of a food, that you would want, and there’s a restaurant for it out there.
Look…I’m aware of why this is such a special thing to do, for me. See, you have to remember, I’m the oldest of 7 children. And back in the day, we surely didn’t have this luxury. My mom and step dad didn’t have a lot of money. Boy…it always seemed to be good 'ol PB & J. Oh, and cereal. We ate lots of that. A ton of bread…and a ton of milk. That’s what we were used to, growing up. Poor…yeah…but happy.
But, let me tell you of one memory that I have. We all were packed in the car, and going somewhere. Someone was sitting on someone else, in the back seat. Yep, doubled up. I guess there was no such thing as seat belts back then. Needless to say, it was crowded. Maybe this was a one time thing that happened. But, it was special. I will always remember the feeling I got when we got word that we were going to McDonald’s.
McDonald’s!!! Are you kidding me??? Did we die and go to heaven? This was so unbelievable! It was like the greatest moment I ever had. That feeling will be with me for the rest of my life. I was so elated. What can I say…happiness rang through that car. I’m sure it got loud in there. It was a magical moment. I don’t even remember how we ate it. Whether in the car, or at the restaurant, or anything. It didn’t even matter. It was the unbelievable feeling that we were going to be eating some McDonald’s. For the moment, we were going to be eating like Kings!
Well, as a dad, you know you always want your kids to have it better than you did. So, what do you think I’m thinking…yeah…McDonald’s…anytime you want! See, that’s good memories, to me. Plus, given the fact that I’m not a cook. Well, let’s just put it this way. I don’t know how, I don’t like to, I refuse to attempt to make food. I simply do not cook. And of all the million times that me and the kids got together, guess what…the only question was…where are we going to eat? They have probably eaten at every single food establishment there possible is out there.
I don’t know. That’s the best I can do. And it still continues to this very day.
So yeah, a little later on today, we’ll be going somewhere.
Good times.
Well, what else is going on.
Trading wise. Well, I did do some trading this week. It wasn’t all that good. I made notes of every single trade. And to be honest with you, was mostly losers. I don’t want to go through them all. It’s too much. But, I am learning a lot through the whole process though. Don’t worry Journal, I’ll be putting out much of the stuff that I learn, in time. But, I’m starting to think that it’s not too smart to jump right in the market whenever I have the time, which is only for a couple hours in the morning. It’s like I’m being rushed. The market doesn’t always go the way you want it to, when you want it to. I kind of think I need much more time for a proper diagnosis, before I jump in it. Look…I don’t know. Maybe that’s just an excuse to cover the losses. Surely it could be. I’ll be honest with myself. I’m not afraid. But, when I think of the fact of only having exactly one hour and 15 minutes to see if my trading plan works, short term trading wise, doesn’t seem to be fair. I’m too constraint that way. It’s just not right.
Well, I’ll at least tell you what my bottom lines were.
Monday. 6 trades. - 19.9 pips. -1.57%
Tuesday. 7 trades. - 24.9 pips. -2.0%
Thursday. 4 trades. - 12.7 pips. - 1.05%
Friday. 6 trades. + 5 pips. + .23%
Yeah, as I look at the totals for the first time now, it’s not good. I’m not giving myself enough time. I can’t possibly compare this to day trading. It’s just all wrong. And I knew this, as I told you before. But, I remember thinking, in the end, that I can only look at the individual trades, for any kind of constructive lessons. As opposed to what a trading session would look like.
Anyway, that’s how the week went. It’s all a process.
Let’s see. How’s the workplace turning out.
Well, I told you that I’m gonna work every Saturday this month till the end. So, yesterday I did work. But, we found out that this was going to be the last Saturday, cause they are shutting them off. That was a bit of a shocker. It surely is the sign of the times. No more Saturdays! It is happening! Reality is settling in. And now, that will leave me with 10 working days, till it’s completely over. I plan on moving my tool box out of there on the 30th. That’s going to be a job. Don’t forget, that’s 21 years worth of tools, bought and paid for. I have a lot of them.
But, you know what? It’s time to move on. Finally. See, I like change. That reminds me of one of our morning conversations this past week. Some people don’t like change. Not too many people do. In fact, I’m the only one, in our little group, that does. My buddy, who’s older than I, says that he’s used to change, (Army veteran) but, doesn’t necessarily like it. I don’t know, to each their own. No biggie. But you would think that since I don’t jump around from job to job, that I don’t like change. Yeah, my resume might look like I’m that way, but that’s so far from the truth. To me, it’s all about priorities. Making the money has always been more important than what exactly you do. Well, that’s all the way up until now. Now, since my kids are pretty well self-sufficient, it’s going to be about what I want to do. It’s that time of life. Even though I did things backwards starting out (building a family before I built myself), it’s better late than never. Now is the time to build myself. And I have been, in the last few years. It’s all been a gradual process.
But, I tell ya, what’s going on now in the present time, is pretty monumental for me. This will be the last thing I put my hands to. My trading. Well…now that I think about it…maybe it won’t be the very last thing. Cause I have such a love for the game of golf! I want to get real good at it. Look…I’m kidding. Kind of. I do love golfing. One of these days, in fact, I’ve said this to many people, that I want to live on a golf course. Not literally, but figuratively. Like every day, I want to go golfing. That will be my office away from my office.
I don’t know. We’ll see what happens.
Ok Journal.
Got to run.
Mike
P.S. --------_"Dad…where are we going to eat?
I don’t know son…you tell me. It’s gonna be somewhere good though!"_
Hey Mike, I just realized that you were a regular in my old “Price Action That Matters” thread from 2013. Hows the trading journey been since? I see your still actively on the journey.
Good Morning Journal!
Good Morning Mike.
Well, here we are Journal. We are pretty much at the end. At the end of an era. This will be my last weekend visit here. Before life turns upside down for me. And man… I am so ready. I have been preparing. Like, for instance, yesterday, I bought another good shirt. It’s awesome. Trish picked it out. You know, a button down, long sleeve, nice simple pattern good shirt that I can wear with a tie. That’s because my entire wardrobe is going to change. I’ve told you Journal.
And that’s typical for me. I go from one extreme to the another. I’m definitely all or nothing, on stuff. You know, if there was something engraved on my tombstone that tells the tale about who I was in this world, it would be this. ’He went all the way with it.'
And I know exactly where I got that from. My real dad. You know how dad’s are, always giving advise to his kids. Well, that is one that stuck with me. He said, "If you’re going to do something, go all the way with it. Don’t do something half way. Either do it or don’t!"
Oh, and there is a parable that says the same thing. I forget how it exactly goes, but it’s something like this. That if you put your hands to the plow, you better do some plowing. You’re either going to plow or not. But anyway, that has always struck a cord in me. I’m just like that.
No more hats. I’ve wore a ball cap, every time I went outside in public. Since high school. It’s just another one of those staples of who I was. Well, no more. And, of course, I will be hanging up the boots. Thank God! I will be replacing them with some good shoes. I mean, that’s what I want, also. I just want to start looking good, for a change. I mean, it’s about time I put my best foot forward. You know? It’s not all about the profession, and what it looks like. I think it should be like this. How you look on the inside, should be how you look on the outside. Clean, groomed, and smelling good. The best of yourself. Like, why not? Right?
This reminds me of our conversation me and Trish had yesterday. Back in the olden days, like in the 1800’s all the way up to the 1950’s, I think. People used to wear very good clothes, as normal everyday attire. Dresses for women. Suits for men. I mean, I’ve seen it on t.v. Out in everyday public, they used to look like that. Oh, and the men used to wear nice hats with their suits. Yeah, they all looked their best. It was the custom of modern life, at the time. Boy, do we wish we could have experienced that. And, I think that might have come from the English people, there in Europe. America probably took the cue from them, in it’s infancy. Boy…I wish I could have a conversation with a very old person who seen how life was, in that respects. That would be awesome. I would have a million questions firing away.
Ok. That’s nice. Anyway. This will be the last week for me in the work force. I’ve thought about it. And I’m going to be playing sort of a game, this week. Since this will be the last week, there will be a lot of lasts. Last Monday. Things like that. Oh, and on Wednesday (been every Wednesday for a few years now), will be the last time I will have to deliver 'the package’ on my way home from work. It’s to a notary shop, pretty close to my house. 2 old ladies run the place. They are very nice. Boy, they are real work horses. You know…they don’t even take vacation time. All they do is work. Life is about work, for them. Sure, on the holidays they’ll see their children, grandchildren, and even great grandchildren. But, when I told them that I was taking time off, for Memorial Day week, I asked them about when they take time off. So, they told me. And I was shocked. Man…I’m not a worker. They are. So, anyway, I will bid them good-bye, come Wednesday.
Man, it just hit me. I wonder if they experienced life back when everyone had to dress up.
Hmm.
We’ll see if I remember, when the time comes. To ask.
Anyway. Lots of good-bye’s this week. Will be something. Out with the old, in with the new. So much so, that I’ve been wondering how I will use You, Journal!
I’ve thought about it. I will have the chance to catch you whenever I want. My first thoughts are to jump right in here and tell you all of the new stuff that I will be doing. Like maybe daily or something. I don’t know. See, I’m probably a real nut job. A real crazy. But, on the other hand, I really don’t care, at all, what anyone thinks. I don’t do this stuff for any other reason, than to get out of me what I want to talk about. It’s like talking, but not. Honestly, I don’t like talking. I’m not known as a talker. In fact, I don’t like talkers. If I encounter someone new, say at work, and all they want to do is talk (I’m a good listener, btw.) I’ll walk away from that, and then tell my buddy, "man…we got a real talker here." It’s annoying.
I’m a typer! I don’t care if anyone listens, reads, or anything. I just want to express my thoughts, opinions, everything. And, btw, I reread my stuff all the time. I don’t know. It’s basically some kind of release. You know, just getting it out of yourself. It is important to me. That’s one side of me.
On the other.
I do feel it’s my story, also. I mean…how many people will see the transformation of a mechanic, to a trader? All laid out. Well, in my mind, I’m not fashioned in my mothers womb as a mechanic. By any means. Cause, I sure do know a few guys that have been. It is talent. It’s a gift. It’s natural to them. And some are dirtier than others.
But me…I’m all about psychology. And numbers. I love both to a great degree!
That reminds me. I’ve picked up one of my older books yesterday. That’s what I did in the morning time.
Trade Mindfully. Gary Dayton
Wow. What a book. Look. I read it before. But, for some reason, it struck me again, even harder this time. Talk about exciting. I am on it this time!
I’ll tell you what’s been on my plate recently. It’s kind of hard to put into words of what’s been preoccupying my mind lately, concerning trading. I’ll just throw out to you what I wrote on my walls.
( I bought some of these plastic, large pieces of paper, that statically clings to the walls in my office, in which I use water based magic markers to draw on. So, it’s like my walls are a giant white board!! It’s awesome! )
— I cannot have a BIAS!! Learn to follow.
— Mindfulness is the KEY.
I’m just getting started on those 2 subjects. When I get the time, I will mark up my walls like you won’t believe.
Journal…time out. Got to take the dog out, and get more coffee. BRB
Mmmmmm…much better now.
Well, let’s see. While I’m on the subject, I’ll throw out some other stuff that I’ve started, on the walls. (One of these days, I’ll take some pics of my office. When I’m up and running full time.)
– Need to surround yourself with people who you TRUST - and learn from. —WHO?–
( I got that from a movie we watched, recently. When I heard it, I ran into my room here and wrote it down immediately. It’s important I think.)
– THINKING METHOD – Inversion.
---------Inversion prevents you from making up your mind after your first conclusion. It is a way to counteract the gravitational pull of confirmation BIAS.
--------WHATEVER PROBLEMS YOU ARE FACING, ALWAYS CONSIDER THE OPPOSITE SIDE OF THINGS.
Under my (trading) PRINCIPLES column. So far.
— Something stays CONSTANT until it changes - what IS is what IS.
—ANCHOR TRADE - AUD/JPY
That’s all I have so far. Journal, you know I got a lot to fill out. I plan on making my anchor trade crystal clear. I’ll get there. I simply don’t have a lot of time, nowadays. But, the idea is to have the secrets of the universe all up on my walls. It’s just what a simple minded, forgetful person has to do, that’s all. I don’t care. I’m just not that gifted when it comes to a sharp mind. I will do what I have to. Whatever it takes to become successful, I will do.
I also have in mind a column specifically for MISTAKES. In which I will need to learn from. Yeah…I’ll probably need to use a complete separate wall for that, it’ll be so big. (Will definitely order some more sheets.)
Anyway, to back it up a little. Journal, if I want to talk to you, and share with you all of my new experiences that I will go through, then, I’m going to. If I feel like talking, I’ll talk to you. (This is the best way I like to talk anyway…by TYPING!!)
Alright Journal, I got to get going. I wanted to talk a little about the market, but, I just don’t have the time now.
Don’t worry…I’m gonna have so much more time to spend with you.
VERY SOON!!
Mike
P.S. – I’ll see ya on the other side.
Can’t wait to tell you how it all ends!
That’s exactly what it is mate 
Releases the emotion as well as you being able to review the trades when the eotion has gone.
Some of our most respected members advocate “keeping a journal” of every trade.
You seem to be really doing this thing right from the psycology pint of view
All the very best mate, I look forward to reading your thoughts as you progress. 
Good Morning Journal!
Good Morning Mike.
Journal…it’s done.
It happened.
I turned a new page.
Chapter.
We’ll call it…a book.
On Friday, it all went down. That was the last day of employment for me.
The last page, of the last chapter, of this book, was just written. It’s one for the shelf.
And now…another one is brought out. Opened up. And chapter one is just beginning.
Man Journal, it’s pretty surreal! It hasn’t quite sunk in yet. Slowly, but surely, it’s becoming a reality. I think once my daily routine changes, then it’ll become more real. But, it did all start on Friday. That’s when it went down.
Well, I carried out my plan, that day. Did it turn out the way I wanted? Not exactly. But, success nevertheless. See, I was wanting a nice and easy day, for my last day. So, the plan was to stop working right at 12 noon. I gave them heads up about that. Like, what can they say anyway. You know? See, everyone has slightly different plans. But, the ending was still going to look the same. Come Monday morning, that shop will go from 8 techs to 2. The VW techs will remain. They still don’t know when their time is up. But, it is inevitable though. We called the whole thing 'The Titanic’. What a slow death.
Anyway, whether the cars still come in or not, I was going to stop at that time. Everybody else was going to finish out the work day, and take care of the moving part on the weekend. But, I wanted to make an end of it that day. I figured the afternoon could be a good time to wind it all down. You know, clean up, make the move, and end on a good note. Cause I wanted the weekend for myself.
And, actually, it did turn out that way, for the most part. It just wasn’t as easy as I hoped. Well, I remember getting jammed up with a couple of cars in the morning time. See, sometimes we know how long it will take us to do something on a car, but not always. It went down like this for me.
The first car the boss gave me was not all that bad. Was a maintenance and a recall. I’m like, ok, no big deal. Should take a little more than an hour or so to do. And I started it. I got the oil change out of the way. No problem buddy. Then for the recall. It’s a fuel line replacement. I’ve gotten pretty good with those. The job pays 2 hours to do. But, I’ve gotten them down to actually doing it in a little over a half hour. See, there’s a set amount of time that each and every job pays. Now, whether we actually do it in that amount of time, is up to us. The quicker we can do it, the better. But, we still only get paid on what is stated that it pays. So, adding up both tasks that I have to do on that car will pay around 2.5 hours. But, I know I can complete everything in just over an hour. It’s one of those things that we have done over and over again. But, not all cars that come in end up that way.
Hence, my second car. After I got done with the oil change on that, and before I started on the recall, the boss calls me over and says that I have another one to do. It was a ‘waiter’. The one that I was on wasn’t. But, it was a car that I seen a week ago. It needed a couple of parts that were not in stock at the time. So, at that time, we order the parts, the customer then has to come back when the parts come in. Well, this is that time that he comes back for us to actually fix it, cause the parts came in. There was 2 issues with it. One was the right front door inside handle light not working. It needs that little light on the handle. So, ok, no big deal. I take the door panel off, and replace the handle (cause it’s all together). That’s nice. Well, the second issue was that he had a cracking trim piece on his center console. It’s a decorative, wood grain, large trim that goes all around the shifter, right there in the middle. Well, this actually is something that I’ve never done before. I mean, I’ve done shifter bezels before, and many components either under it, around it, things like that. But, not this in particular. This is attached to the console itself. So, now, I’m starting to feel the pressure. I know the ending is near. But not before I got some work to do. See, the entire center console must be removed, in order for me to replace this large piece of trim. So, of course I’m going to look this up to find out how to do it. I’m not that clueless of doing something like this, but, I do know that it’s going to take some time to do. Well, I got to it. I was sweating profusely. I’m talking, water dripping on to my glasses. It wasn’t pretty. I had to continually wipe off my sweat from their seats, the front and back ones. So, I mean, that’s just how it goes. It’s work. And I had to get through it. There’s no other way. I just didn’t think that I would be going out in this fashion. Meanwhile, I do know that I’m not done with that other car, also. Well, anyway, this center console job only pays an hour. Well, it took me longer than that to do. Usually that’s the case when we do things for the first time. We always lose on it. It’s the ones that we’ve done over and over again that we can capitalize on. Like that recall on my first car that I have. In any case, I got through it. It went good. I didn’t break anything (which is something we always have to be careful of), didn’t scratch anything, etc…everything went good. And the time factor? Well, I finished up around 11:15. I really couldn’t believe it. I surprised myself. Surely, along the way, I thought I wasn’t going to make my 12 noon deadline as I planned. So, when I was all done with that car, I told my boss that I have to finish the first car that he gave me. And, that’s when I told him. When I’m done with this one…I’m done.
He knew what I was talking about. I told him. I’m…Done…
So, I brought that one back in. Got the fuel line taken care of. As I was doing it, kept thinking that this is the very last car that I will be working on. I mean, it really is an end of an era. So, I got it done in a half hour (in which I get paid 2 hours worth). Man, was I happy. I can’t believe it. I actually have met my goal to be clocking out right at 12:00. But, Journal, I didn’t tell you about the deal that I made with the parts department. See, we made a deal. I could borrow their parts truck (to move my tool box’s and stuff back home) if I replace 2 tires on it. They had that truck down and off the road because it wasn’t safe with 2 bald tires on the rear. So, this will actually be my last act, before I can go. And it’s no big deal. But, that is what I did as soon as I clocked out. So, took care of that, and then it was time to clean up and load up the parts truck with all my stuff.
Also, this was pretty fun. And fitting. See Journal, I told you how us guys do some grilling from time to time. Well, they surely did the grilling this past week. Every single day there was a cook out, for lunch. But, on Friday, was the final cook out. Our boss brought in a ton of stuff. A huge thing of fried chicken. I casserole in a crock pot. A huge salad. And others pitched in with cookies, chips, pop, etc…Oh, and we grilled the last of my brat wursts that we made earlier in the week. It was fun. Yeah, to back it up a little. It was funny. When I told my boss that I’m going to be done when I finish that last car, he said 'No you ain’t… not until you eat.’
I guess they thought that maybe I wouldn’t stick around and join everybody when it was time to eat. Cause, I kept getting asked beforehand if I was going to stay and partake of the food. I guess I really drove it home, the fact that I planned on quitting at noon. But, of course I stayed. I took a break from the cleaning, loading, and organizing of all my stuff.
I told them that this is the last supper. And so, we ate. With not a whole lot of talking. I think everyone is tired of all the talk. There’s nothing more that can be said, about the situation. But, I did say it. I said that this will be the last time that I will ever see you guys. And one guy barked out, “What do you mean? Of course we will see each other again!” See, him and one other guy live sort of close to us. So, yeah, there’s a good chance we will hook up together in the future.
So, I got to thinking, as we all were eating. And I told them. "You know, in the workplace, I never spent more time with anyone else, in my life, more than with you guys." And it’s true. It’s the amount of years that we’ve spent together. And they all agreed. It’s something. “So therefore, we’ll most probably keep in touch with each other.”
Alright Journal, let’s take a break. Be right back.
Ok Journal. Where was I?
The rest of the day.
Well, it just took longer than expected. I was hoping to be done around 3 or so, with everything. No way. More like 5:30. But, I got through it. At the end of the day, literally, I was glad to get it all done, but, I guess I wanted it to be an easy Friday. It was not. Can’t have everything. I better be thankful that it all worked out PERIOD.
The good bye’s. Well, not too bad. One in particular stands out. And that’s with my buddy Cliff. You know, the older, Army vet. Only been around for about 5 years or so, but, we were close. And he did say it. When we hugged it out, at the end, he said "Mike, I couldn’t have made it without you. It was only because of you that I was able to get through it." Yeah boy…I felt it. That was sad. And all I could say in response was, Cliff, we got through it together! It was me and you.
What can I say.
It
Was
Sad.
Well Journal, that day came and went. Me and Trish had a nice night. Like always, we go out somewhere on Friday nights. That’s one of the customary things we like to do. And, I’ve been processing the change slowly.
Speaking of change. Journal, let me tell you, I am making a lot of changes. They are taking place already. One is no more wearing of the hat. I know Journal, you might not think that’s anything, but, anyone who knows me, only sees me with a hat on. Well, those days are over. Yesterday, me and Trish go to do our weekly shopping. And, yep, she notices. When I first sat in the car…“Wow, no more hat. Actually, you never seemed to be a hat guy to me anyway.” She says. That was a bit of a shocker. But, ok. That’s nice to hear, I guess.
Anyway, I’m dressing up good now. And today, comes more changes. I can’t look like a bum anymore. I would only shave once every 2 weeks. With a Go-tee. Well, no more. I’m shaving it all off. And plan on keeping the completely clean cut look from now on.
Then, tomorrow, more changes. Yesterday, when we went shopping, I bought a pair of running shoes, some shorts, and some socks. It starts tomorrow. I’m running. Journal, just think of Forrest Gump. That will be me. I’ve been down that road before. But, I was much younger then. Like in my early 30’s. Well, 20 years later, I’m gonna pick it back up again. Don’t worry, I’ll start out slow. Do the stretching, and start out doing a mile or 2. But, I’ll get back to the multiple miles in time. Therefore, physically speaking, I’m gonna get down to where I should be. Healthy, fit, and younger. I’m in charge now. Of my time. And I want to manage all of my time to the best way that I can. Journal, have I ever told you how much I enjoy naps?
Then…it’s on… for the business. There is so much I have to figure out. See, I know the best way for me to find the best way of doing things is to go through it. As opposed to planning it all out first, then executing. See, I’ve always liked the idea of coming up with a plan to follow. Then to follow it. But, I’ve been learning lately, that that’s not the best way to go about it. Cause things don’t always go accordingly. So therefore, when I’m in the middle of a work day, this coming week, I don’t know exactly what I’m going to be doing. But, I do know one thing, I will be building. Somehow laying down a foundation. You know, the most important aspects. I know I will have to develop a routine. But, it’s gonna require a lot of thinking. That’s probably the biggest difference that I will be experiencing. It won’t be about the physical work that makes me successful, it will be the mental work.
That reminds me. I want to set aside some time for meditation. I mean, it’s like laying a good foundation for my mind to be most optimal. See, like I said, there’s a lot I need to figure out.
My hard work will not look like it used to.
But, you better believe. I will be working very, very hard.
Journal, we’re only beginning. You’re gonna get tired of listening to me.
We’re gonna write a new book together. Me and You.
A new life is just beginning for me.
It’s officially gonna start tomorrow.
See ya then.
Mike
Good Morning Journal!
Good Morning Mike.
Well, here we are Journal. 1st day on the job. Trish just left for work, like a minute ago. And I wanted to come in and talk some. I had a good morning, so far. Let me walk you through it.
First off, I’m keeping an eye on the market. So, pardon me if I have to run. Don’t worry, I’ll be explaining what I’m watching for, in there.
But, yeah, last night, I couldn’t fall asleep that easily. I was a bit nervous. Let me explain.
My plan was to go running. For the first time. And I didn’t know exactly when I should do it. Well, let’s by-pass my thought process and get to what I finally decided. So, as I was laying there, I switched my alarm from 3am to 4am. I mean, I have to get off of the old routine. Believe me, all I was doing was thinking how I should manage my time. I’ll probably be doing a lot of that now. So, finally fell asleep. Woke up around 3:30 or so. I’m sure because of what I’ve been used to. But, stayed in bed until 4. Then, it’s on. I changed into my running gear, in my office here. Then stretched all the way up to 4:30. Man, I do not want to hurt myself. Needless to say, I’m taking all precautions. So then, I counted down the last couple minutes before 4:30. Then, it’s finally go time. I was so nervous. See, it’s dark out. And we, potentially, can have a lot of animals running around out there. Deer. Turkeys. I don’t know, maybe skunks. But, it’s woodsy. Man, even one time last year when Trish was not working, she, while taking out the dog for a walk, encountered a heard of sheep! That was so very weird. Got pictures of that and everything.
Anyway.
I ran. I went from our circle (we live at the end of one, in the plan) to another circle straight across. And then back to our circle. Boy, am I out of shape! That only lasted like less than 10 minutes. I thought it was too short of a time. I didn’t want to quit though. So, I walked the same distance. That kept my heart rate up a little bit more. Yeah, it was fun.
Quiet.
Dark.
Moon was out, and on the bright side. Kept looking up at it, while I was walking back.
So, yeah, it was quite fun. Short. But, I kept telling myself it’s gonna be all about consistency. Like on a daily basis.
Then came in the house. Went to my office. Stretched. I mean, again, I’m being quite cautious about it all. I just do not want to get hurt. I was outside till about 4:50. I thought that would be a good start. Didn’t over do it, but, did a good amount. Then, after I stretched, I followed my plan. I kept the lights off. And I sat there. In the dark. I did some meditating. Well, I don’t know what you want to call it, cause it was more of a mindfulness activity.
What it looks like is this. Me, sitting on the floor, relaxed, with my back up against the recliner. In a dark room. With my eyes closed. And all I’m doing is paying attention to my breathing. In…out…in…out…The idea is to live in the present. Surely, the mind will want to wander. Think. That’s when I need to bring it back to the present. And all I’m doing is concentrating on my breath. That is it. Actually, it’s a concentration on the present moment. And, I mean, I can even use my hearing also. Boy, it’s quiet. See, that will keep me in the present also. Actually, any of my senses, that I’m in touch, with will do the job. That’s what I am doing. Trying to stay in the present moment, AND not letting my brain go off into…the past (memories), or the future (plans)…just thinking of stuff period.
Ok. You got the idea. That’s what I was doing up until around quarter after 5. Then I finally went for the coffee! See, Trish wakes up at 5:30. So, I got a cup, and just relaxed in my dark room for a few more minutes, till she woke up. I took the dog out and all.
So, to put it all into perspective. I worked on my body. Cardiovascular wise. Then worked on my mind. Mindfulness. Then spent time with Trish. News. Coffee. Things like that.
Then, I took a shower. Cause, I wanted to dress up. It wouldn’t be good to jump in some good clothes after I exercised. You know. Anyway. Yep. I dawned on some pretty good threads. Purple long sleeve dress shirt. Black good pants. With a black tie. I turned around, and said, "Well, how do I look?" She said, “Your tie is too short, sorry.” We chuckled, then, I fixed it. “That’s better.”
Look, I know it’s kinda stupid. But you know what…I don’t care. I’m not going to be a bum anymore. Oh, I guess I didn’t tell you. I got a hair cut, from her, yesterday. Then, I shaved. Yep. I look completely different. All day, yesterday, she kept smiling, mentioning how different I look. This goes back to about 9 years ago when we first met. That was the last time I looked like this. See, I then found out that she liked the scruffy look. And that’s why I kept with that look for so long. But now, she does like the kisses. I guess there’s a big difference between the styles.
Ok. That’s nice. Well, that’s when I went into my office. And finally opened up the market. That was at 6:30 (I know cause I wrote that down on my wall). I got a ‘Routine’ heading. I want to see what works and what doesn’t. Just keeping track of my time. Schedule. Things like that.
Anyway. I bid her good-bye, from about 7 - 7:20. Then popped in here. So, that brings me up to date (time).
Now what?
Well, now that I’m looking like a banker…
It’s market time.
And that’s what I’ve been up to, as I’ve been typing this to you. Geeeez. For a hour now.
Well, I got some explaining I want to do.
Let me send this out, and immediately come back to tell you my market thinking. My trading thinking.
Oh boy.
Mike
Ok Journal.
Here we go.
Be easy on me.
This has been what’s going on in my head concerning my trading lately. We’ll say in the last strong month.
I have determined that I want to FOLLOW THE MARKET.
What does this mean to me?
I just can’t help liking the crossover method.
Ok, after some time of thinking here, I think the best way to go about this is to come right out with it, and then give my reasons.
– My time to enter the market is when a crossover takes place.
– My time to exit the market is when the opposite crossover takes place.
– Presently — I’m going to use the 5min time frame.
In the last month, I’ve been working on the 1min time frame. This is what I’ve learned from that.
Anyway, I also have been learning that I’m done with speculation. Look. Every trader seems to think that there’s some real correlation of the different time frames. Well guess what…I don’t believe that anymore. Oh, don’t get me wrong. I used to put a lot of stock into that notion. Kind of like this.
Look at the weekly time frame. What’s is looking like? Up. Ok. Then it’s a bull market. Now, what’s the daily time frame doing? Up? Then it’s really in a bull market. Then, how about the 4hr time frame? What’s that doing? Down? Up? Etc…
Look Journal.
I’m done speculating.
I’m going to follow the market.
Call me simple. I don’t care. But, I’ve been tired of thinking that the market should go one way or the other. I mean, I really searched myself lately. And I realize that having a BIAS is a killer! Does it really matter which way it goes? Well, when you have a bias, I don’t think you’re really following it. I think there’s too much hoping going on. Something really snapped in me lately. I have gotten to the point where I honestly and truly don’t care which way it is going. Whether up or down. I don’t care if it’s the Aussie having a good day, or the Yen tearing it up.
Sorry. I got to pay attention. Will show you what’s going on in a minute.
Will come back very shortly Journal.
We got trading going on now.
Mike
Alright Journal, this is what the market looked like when I first opened it up this morning.
On the top we got 1m, 5m, 15m.
Bottom we got 1hr, 4hr, D.
I’m watching the 5min chart, top center.
Since this is the first time I’m looking at it today… That is important to note.
I should not get in a trade until it crosses over to the upside. That’s what the plan is. I’m going to get in a trade on the next crossover, to the upside.
So, I’ve been waiting, since then, 6:30am.
This is the next update, which pretty much just occurred. At 9am.
We have a pretty dog gone large candle.
--------Live Action------
–Alright— Trade now over.
Let me walk you through it. At least we will see how you follow the market.
Where was I?
Well, large candle took place. This is getting my attention. Sure, had some close calls earlier, as you see, but this one breaks the mold a little bit more. I need to see a crossover. That is imperative to me. And if I don’t, then I jump.
So, I get in. This is the screen shot as soon as I took the trade. Bottom left shows it.
I hang in there. I also am aware of needing a closed candle. Since I am working with the 5min time frame, it’s not all that long of a wait. Well, the trade didn’t work out. This is the screen shot of when I jumped.
Did it crossover? To the upside?
Nope. That means I’m out. I might have been a little late, but, remember, I’m typing away here as I trade.
But, the point here is, that I am going to follow. I am not going to speculate. I don’t care which way it goes. I really don’t. Sure, I lost. And you know what…I think it was a pretty respectable trade. Why? Cause I am going to follow a plan. And the plan is to follow the market. I don’t care about if I made money or not. In the end, I believe that as long as I follow, I will be successful. See, just imagine if I was up trading at around between 4 - 5 am. Look back on that one chart. You’ll see it. I would be waiting for the first crossover to be going down. And then I would get in it. I would be riding it all the way down. Now, that would be success. But, I wasn’t trading at that time. Oh well. That’s perfectly ok with me. I was busy doing other stuff, as you know. But now, my focus is to wait for the next crossover. And that happens to be going up.
I know, this last hump was a fooling one, and you’ll have that, but, the game is not over. Actually, as I keep tabs on the live action going on now, this just might be the first of another one coming. I don’t know, maybe, maybe not.
Look. I just believe in following, rather than speculating. Meaning ---- I don’t know what is going to happen. I don’t need to know the reason why something is going to happen. But, when it happens, I will be there.
Well, let me send this out.
Oh, I got lots more to say.
And we’ll keep track of this one today.
Mike
