Just a few pointers in the right direction
When a magician puts a performance on he has to create as many distractions as possible to take the viewers minds in a direction away from what he’s actually doing and towards ‘anything’ else. The distractions I’m talking about guys is of course Indicators, as the name suggests they are indications of what might or might not happen and they may be right or wrong. Here is the fact though we forgot about, what are we being distracted from? obviously the price, so why distract us from the price? that’s the question.
So were to stop looking at price and focus on something else while price does its thing just ask yourself why? that’s hopefully that part sorted.
Next, I did an extensive study on candlesticks reading with Steve Nison books years ago, I know, a bit drab to do but I did it anyway. So If I’m focusing on price in the form of candlesticks and looking for things he speaks about in his courses on my 5 minute chart and I take all the (distractions) of the chart and look at what’s actually happening with price then I start to see things other trades using indicators might just be missing.
I know this isn’t going to make me my millions I know I have to add something else to this equation, what is it?
Is it how price moves? it it why it moves? is it when it moves? Is it a combination of these?
We have to look at all options and ask all the questions to understand what’s happening, why its happening and when its happening.
Its no good looking at the chart and saying hey I see a bullish engulfing candle, I’m going to buy now that means the move is going to continue up, or bearish engulfing candle it must continue down, got news for you, no it doesn’t mean anything! Its another distraction, sorry guys, The market isn’t that easy! and because it works ‘sometimes’ doesn’t mean its going to work all the time.
So were stuck, what the hell do we do to get something consistent and reliable enough that we can trust putting our hard earned money on it?
Baffling isn’t it? Well for me it used to be and for some of you I know it still is. have you ever actually stopped to really think of the missing link? I mean really stopped to think, Most folk give it a few moments now and then but I’m talking about 1 hour or so focusing? probably not I’d imagine because there are so many other distractions going on around us that it seems an impossible task.
My job as a trader is to stop and notice what’s actually happening and to put aside all the distractions that I can find and focus on why, how and when, sounds easy doesn’t it?
My job as a trader also is to anticipate what’s going to happen and be ready for it, its a race, get in first before other traders and get out again before they make there move, but how is that possible? Am I psychic? of course not! might seem that way to some but I assure you I’m not, am I lucky? I like to think I am but that’s not the trick.
So, how do I for example get on that bullish engulfing candle while everyone else waits for it to form?
The only rational explanation is that instead of looking for the candle is to look at previous examples on charts to see what usually happens before the candle happens! common sense prevails when you rid yourself of these distractions, doesn’t it!
Your job as a trader is to anticipate a move, rid yourself of distractions, look at history on your chart and get on and off quicker than jack flash!
Hope most of you take the sunglasses off and realise all the crap on your screen is to deceive you and make you hesitate while people like myself make some pips, sooner you realise it the better.
I know a few people might be pissed at me for saying the above but its the reality of the situation and it makes sense and its working for me so it could work for you.
Just a few home truths
