Real Time Trading

Hey. Looking through price charts during the week is quite a different activity than analyzing and producing our general ideas for the week. These general ideas discussed in our weekly analysis updates are a large 'map' that is much to large to see when we are running around inside a pair looking at price action. We keep it in mind so we always know where we are in the scheme of things; it helps us from getting lost as we always have this context surrounding us. I walk through some ideas from the 'bottom-up' perspective here in this video.

Trades and trading decisions are never entirely taken from the contextual perspective. This point-of-view is necessary in deciding which setup is worth investing in and which are not. It is not because the setup wont produce some movement but rather, how much movement? How much of my account will be tied up and exposed to a low quality opportunity? Will I miss another preferred opportunity because my capital is tied up in this trade? These kinds of considerations while very important are fundamentally secondary. The primary concern is whether or not you can find a setup at all. When you find one, do you trade it properly? Do you follow the rules or do you break them because you're chasing profits, scared of loss, fear of missing this 'good opportunity' or any number of other emotionally provided reasons?

Trading the pattern indiscriminately is a good way, and perhaps the best way of understanding the pattern. What kind of movement does it produce? What are some general ways the pattern can present itself that are different from the 'textbook' version? How much predictive weight does this pattern really have? From here you will eventually notice how better and worse conditions, that is to say, better of worse 'context' will produce larger or smaller predicted waves. Larger and smaller obstacles, bounces. Longer or shorter trends and so on.

Good Trading.