Friday, October 5, 2007

Range / Trend Fool...

This week has been one of the most terrible and intense experiences I even had....

No matter the bottom line facts... it was a time when so many mistakes were done, so much tension has been exerted and the fight was really fierce. Suffice it to say it was quite a terrific real-time educational course which now just pushes the trader's mentality transformation further even at a faster pace...

Every loss and gain; every time I got scared on a spike; every time I overleveraged and position size made me petrified - not able to make a sensible decision; every time I got faked out on a false breakout or got margined out trying to average out of a position I took against a major trend ---> well that's all the Old School of Hard Knocks...

I now beleive even far deeper that I don't need any magical other peoples' system. Nor that I can use a system developed by somebody cuz I just have to make my own set of rules designed by my own account size and risk profile... LoL..

Well, to cut the crap -- I have had enough evidence my market analysis is not worse thatn those of the analysts that appear on the Newsfeed -- their charts show exactly the same price as mine show and basically the reading of the chart is important and mine at the present point has got far closer to that of the professionals' point of view.

So what now is important is to focus on Money Management and Capital protection so we can build sustainable results.

On technical side of the problem - let's focus now more on how to differentiate the Range / Trend market modes - here are some suggestions to dig deeper into:

1. Bollinger bands - measure of volatility.

2. Trading breakouts VS. averagin out.

3. Average True Range - how to use daily ranges to find if the market has potential for a move or the market is exhausted.

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