Advanced trading lessons - page 62

[jim]

too all other traders

once i had conversation with one of the most famoise traders in the world.

when i first started trading. he said " traing is in nut shell gambling" pause

"gambaling with speculative information". i never forgot that statement. comming from one of the best traders of our time.

when we enter the market it is dangeriose and darn right a loosing battle to enter the market just because

it look like we are long so i will go long! believe me when i say millions of people tried and failed.

why - because they are forced to deal with emotion when entering the market. emotion will kill.

the very first thing i did when i relised i can not trade unless i cut out emotion is: how do turn the tables on trading

with out emotion?

so the way trade envoloves very few is any market orders.

now any trader who says things like. why do i care how far a trade will go , obviesally is missing a few screws!!

if you know how far a trade will go before it turns around, well you just had made it as a trader!

you can pick tops and bottums at will!!! so if you do not care how far a trade will go you should become a janitor

or somthing like that. the world needs janitors .

but as traders you bet your ass, if you can't speculate on potental reversals you will never trade.

market up counter trend (temperary reversal) market rejions the trend (major reversal) the market ranges

reversal to reversal to reversal to reversal!

problems with all of this is: the market fakes reversals all the time, and in different ways.

the market also fakes break outs. the fake price action. and it fakes out fibs. fakes indicators.

the market is designed to hunt stops. creat emotional disions and then take the money. if you do not believe me ask the

millions and millions of people looking for answers over and over again only to cum up empty handed.

thats why philt is here! he is empty handed there is no shame in that. but there is shame in trying to under mine

me and flipping his stupid moth off when he is empty handed. that is really trashy. discusting in fact. a leach!!

[jim]

ok back on track

no in order to trade with out guess work you have to plan to trade.

now know on can tell me what the market will do next without some geuss work.

i like to alminate as much guess work as possable.

so i will show you all how alimante most of the guess work.

#1 - the first thing i do is aply a trend line. i always use trend lines that draw through stuff unless it's physical strike.

A. trend line that are drawn through stuff are trend line the rest of the world abandons hope for and end up being

good later on. go back in history and check it out!!

#2 - then i find the center line of the weekly and find where they meet. thats my resistance. ( or temperary turn aruond

point.)

B. why weekly? because time frames can add confusion and can easily over ride you. so if you use the daily

it add complication... less potentail... and can be over ridden by two time frame above you.

# 3 - now i cannot tell you what the market will do first. the beginning of next week for example....

A. will the market counter trend first to a medium degree... or will it trap trend traders first??????????

but knowing that does not matter to me because i do not have get envalved with that speculation.

B. what do get involved with is this: if goes short first ( to medium degree ) then i pre- calculate

the pull back swings potentail. with support. i will explain horzontal support and resistance tonight some time.

#4 now if the market goes long first and breaks the high then:

A. i have already pre detirmend an old trend line as the center of the resistance. and horizontal resistance

that matches that level.

B. also later tonight i will show traders how to guage the strangth or weekness of any high being broken

for confermation to your pre determined level. later tonight i will show you how i do this.

[jim]

oh and by the way

by the way this is a war!!!!!!!!!

if you ever met a floor trader like have. you learn a few things!!

one is they love drawing the massis into the market and hunting there stops. they high five each other and take

pleasure on taking money from 99% of all the traders in the world.

there tricks are far and wide... they have litterally thought of everything!!

so if you think my personality is to sit back and think of them as kind Gentalmen then your wrong.

i say game on all the time !!!

[jim]

trendchanger

whats going on trendchanger?

[TCT]

Hi Boe,

I'm still subscribed to this thread so I get notifications via email. Not really that active in the forum otherwise. Hope all is well.

Best

TCT

[jim]

now support and resitance

support and resistance... this is how i find horzontal support and resistance.

you all know how i find it with old trend lines, well some times you do not have that so

we also need to fing horzontal support or horrzontal resistance.

now keep this in mind when lokking for them>>>>>> keep in mind the market does this 95% of the time..

#1. the market ether crosses the trend line, and the market trend continues.

#2. or the market leaves with out hitting a trend line. leaving traders who calculate risk entries at trend lines

standing there going dam ....

theise are the two things trends do!!!!!

#3. now when i look for support lets say on a weekly tail of a candle, and lets say i have no trend line help.

or maybe the trendline is so far away it seams obsolete ( not practical ) or maybe it's to sharp ( not believable )

A. if its sharp and not believable then expect that trend line to be crossed in a and quikly rejoin the trend.

B. if it's to far away expect expect the market to range a cupple of periods but not reach the trend line before

the market continues.

now knowing this helps to make dissions on where you want to place them.

what else helps????????????????

i know that when looking for weekly support or resistance ( wheather it be a counter trend trade.. trending trade)

i know this: you have look at the weekly candles left of you for possabilities.

#4. once you get 1 0r 2 posabilities maybe 3 at times.

A. you have to then rifine that weekly level with a daily, open.close .high. low. near by. and thats your hosantal prices!!

#5. you also have to know one more thing. that's your weekly levels most of the time are: not hit, and just come up

a little short.

A. or they cross it slightly then turn aruond.

i will put some shots in as examples later

[jim]

i have to go

i will be back later on tonight for short time.

[jim]

Trendchanger

i have always felt like you very smart likable guy. It's good to here from you. just heiring from you gives me sort

of calm relief, great trader great guy. outstanding trader actually. you are welcome anywhere!!! expectailly

here!! have a good day.

[jim]

ok back to the fueture

we were talking about horizontal support and resistance.

next page i am putting up an example. if what is typicly the norm. not to say its always this way, some time the weekly

is right on the money the ratio is about 3 to 1. so about every three times this is the reality.

shown in the next example. also this reality is always true when the support and resistance is obviuse.

clear to any trader who looks for it. Market movers do not want almost know one on the trend ride. if they can help it.

so they are smart.

ok ------ in a obviose situation market makers want trap traders but do not want to trigger support and resistance traders.

so they fall short of the mark !!!

next page i will show you how to adjust the mark.

[jim]

when it is obviouse

when it is clear ... weekly trend weekly pull back... weekly resistance..

adjusted not to be triggered. some thing close by. a high a low, a open. a close.

when you have trade for long time, and you think back to the early days you say yes i remember being nifty

setting thier like a cat on a bird , perched just chomping at the bit!! only to be insaulted by missing out 5 pips

or less. you hang you head in disbalief.

it's not by accident ... it's by design!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!