Making steady progress in coming up to speed on my modified trading methods. The more I use it the more I realize it’s the real deal for me. Any trading mistake I make is no longer system related- meaning that the error comes from me failing to properly apply the system.
When properly used, the system provides excellent entries and exit targets with no fear of getting stopped out via whipsaws. As I grow more familiar with it I get a greater awareness of just how accurate it is. Am I excited about this? You bet! I’ve reached the phase where I have made a working and tested system and all that remains is getting proficient, which is happening daily.
I say these things knowing any experienced traders reading this may think “Many traders have claimed they had a ‘working’ system, only to have it not perform as stated.” If I were reading this blog as a stranger, I’d probably think exactly the same thing, haha. =) Fair enough, but time and performance results will prove me right or wrong.
I have to say though when you have a line on how the market is supposed to move, you really start seeing all the “fake” market moves that trick so many into making bad trades. It’s not like the market is just “random” and hard to figure – it’s actively moving in a way to entice you to make an error. I see the market dance around resistance and support lines to “fake” resistance or support, only to reverse and move in the other direction. Anyone trading on the fly without having a system to keep them grounded is bound to have problems getting accurate reads on market moves.
Here’s Friday’s ES Chart:
When the market opens, the market price moves all over the place with no clear direction. A notable bar is a 7am when prices spike up, reverse, spike down sharply, then jump back towards the center in a span of 2 minutes (candle bar timeframe). Very easy to get whipped out of a position with movement like that. On the other hand, there is a good amount of volatility that can produce good profits if properly traded. There’s almost 10 points difference between the high and low points of the day.