Before diving into the specifics of this section, its important to cover a few things to set expectations and provide yourself with a realistic understanding of what I will be covering here. First and foremost, this is what has worked for me. There is absolutely no guarantee it will provide the same results for you. Furthermore, this is not trading advice and it is meant to be for educational purposes only. Attempting to duplicate the method in which I will provide here will be at your own risk or discretion. I’m showing how I approach my trading with the hope that it will provide each of you ideas and potential elements that you will be able to apply to your own unique trading. With that being said, I’m not asking for anyone to try and duplicate what it is I do precisely. Rather, I’d like to see people take this information and build it into their own. This is not a paint by numbers/buy green, sell red type of trading. Its very discretionary and advanced but I will look to simplify this as best as I can for the sake of comprehension.
This is completely contrary to what the industry educational standard is which is to provide a boiler plate approach to teaching a trading method to a large mass of people. I don’t believe that has much success. I think trading needs to be unique to the individual. Reason being, people will inherently process information differently. There are so many factors in trading that its very difficult to duplicate precisely what another person is doing. You can certainly come close but you won’t always end up with the same results.
With that being explained, we can now move on. The first most important item to discuss is “what is trading in the context of this section?” Trading is sitting down at your workstation everyday and doing the hard work. I categorize trading as a five step process of