Something interesting recently happened on this journey to learn how to accurately day trade- I actually learned how to do it. 😎
That longed for day on the horizon that motivated me on this journey has at long last arrived.
The interesting thing is it didn’t happen as I expected – that I thought I would be able to read all the day trading books and take that information to directly “engineer” a day trading system solution of my own.
I actually did engineer a system – but it was really a dual co-creation to what I was actually focused on- based on intuitive pattern recognition over the hours, days, months, years of deep research. While my conscious mind was focused on crafting a system my subconscious mind was taking in all the data and analysis and connecting the dots as well.
Using my starting point of 2010 as the year I officially made this an A1 project and immersed myself into this endeavor, I put in over 15k focused working hours into trading and analysis- and that’s not including the prior years before it was put on the front burner.
So what wound up happening with watching and analyzing chart price flow day after day, things mentally gradually started clicking together to the point where I can now naturally see market flow and specific support and resistance pattern behavior. This enables me to determine and plot the proper trend lines to focus on for market action/reaction moves- which translate to specific entry points and exit targets.
About a year ago I wrote about 2014 being the year I thought I would reach “Trading Sharingan” level of precision trading. It’s taken longer than anticipated completing the fine tuning and adjustments, but I was able to solidly confirm the new techniques in December before 2014 was done – better late than never! =)
The end result: Trading Sharing achieved!
So what does this mean exactly? It means I now know how the market moves, which is saying trading will be much easier going forward. Previously, I had developed an intuitive/perceptive feel for market behavior, which enabled me to have such a great year in 2012. That year also had huge swings in both directions as my intuition wasn’t perfect.
Now, I have a more direct awareness/understanding of market action. The “guess work” has been largely removed.
Does this mean I can trade the market at will? No – I have to wait for certain types of trading set ups based on support and resistance behavior- the difference is I now KNOW what I’m looking for as well as what reaction behavior to expect.
So once again, the question came up as to whether I reveal my believed findings, or wait several months until I’ve racked up a steady collection of profitable trades, lest I be mistaken and look foolish. The answer is the same as before, this is my blog of trading skill progress, so I’ll keep things as close to real-time as I can. If I’m wrong or right, you’ll find out close to the same time I do.
With that said, I will now return to posting my broker monthly trading performance stats so my progress can be tracked in a more official manner.
What I will be doing is what many say can’t be done – accurately time market entries and exits as if one knows where prices are going on a regular basis as opposed to just being lucky. For me, my trades don’t really depend on clock timing as they do certain support and resistance price levels, but many would also consider that a form of timing as well.
I make no claims of knowing some “ultimate” pattern secrets. There are a myriad of patterns going on in the market on a daily basis. The key and difficulty is being able to isolate a specific behavior pattern sequence that’s part of general market behavior. The challenge is being able to take a general system of market behavior and keep working on reducing the amount of variables and scope over time until you the reach the specificity needed in order to determine accurate entry/exit data.
After the better part of 5 years of intense immersion into day trading and self study on developing the required skill set, I have to say it feels good to climb out of the dark and into the light.
From this: entering the dark woods of learning to trade…
Lots and lots of time spent deep in the woods of trading analysis, journal entries, and system development…
“Miles to go before I sleep…”
Onward and upward!