The gold trade we found today is very instructive in a few ways. Firstly; the exact meaning and expression of the ideas may vary. We discovered only afterwards how accurate we were, able to look back and see which waves we expected to see and where they ended up being having moved out of time. Secondly; being nimble in taking a loss and keeping objectivity itself provides a huge opportunity. As its often the case when price unfolds in unexpected ways many people suffer losing trades. These trades weigh on their psyche and when now opportunity has arrived and action is called for, everyone is still licking their woulds and mulling over their failures. Of course paying no attention to failure and marching onward blindly is even more foolish, so i would say there is a balance between those two only discoverable through personal experience. Thirdly; the 'probability cost' of all trading decisions is itself a learnt skill. That we might close profit whever we feel like it, open positions whenever we feel like it, what sort of model ought to be used to help direct our decisions towards the better answers?
When we sat in some profit, acknowledging that we would gladly give it all up to participate in the next wave is such a probability cost estimation. Closing off profits at every decision point would indicate a personality unsuited for trading. Risk must be taken or else why speculate at all? If we shall take risks, which ones are worthwhile? When everyone is attempting to take worthwhile risks, how can we out compete the crowd? The crowd itself will never be beaten if you value their thinking more than your own. In speculation as opposed to investing, the crowd must be beaten to profit. I cannot imagine a strategy that doesn't fundamentally rely on beating the crowd. In investing this is very much not necessary, a perfectly average performance in the stock market can make any man very wealthy. This is not the case in speculation because the average trader makes wrong decisions and loses more than they win.
Good Trading
We filtered charts to find only opportunities currently evolving or very soon to be. Some time was taken to sort through all the pairs so much of the video is quiet analysis. In the end we found a trade idea and extracted some pips from price action. Momentum, volatility, acceleration/deceleration, support/resistance & supply/demand are used in combination to carefully walk along that edge defined in our system. The gbp/aud trades yielded a total of $600 for the day; a rather small and unimpressive amount. Yet the types of decisions; the weighing of risk, the quick abandonment of all the ideas we invested time and effort into producing for better ones are a category of skill that will generate $6000 or $60,000 just as easily as we generated $600 today. The only two factors between smaller and larger amounts is the stability of character when increasing trade sizes; can we maintain pure objectivity risking so much equity? And the total size of our account; how much does a loss hurt my balance?
Good Trading.
Some analysis for the Aud/cad, Gbp/nzd, Gbp/jpy and Gbp/chf for tomorrow. Two live trades were placed during the recording, partial profits taken on both for 600$ total. Both have been covered and left open for the night on Xau/usd and Gbp/aud. The Gbp/aud trade was taken rather intuitively. Reasons only discovered after we were in a position, which I do not recommend anyone doing before some consistency across a year trading one single strategy.
Good Trading.