Specific Adaptation to Imposed Demands.
Becoming the Person You Know You Can Be
Brett N. Steenbarger, Ph.D.
www.brettsteenbarger.com
Note: A version of this article appeared on the Trading Markets site the week of 10/3/05.
This is one of my shortest articles, and it may be one of my most important.
In bodybuilding, there is a principle known as "train-to-failure" (TTF). The idea is that you lift that amount of weight that permits you at least ten repetitions, but continue the lifting to the point of failure: the point at which you can no longer sustain the repetitions. Such a heavy-duty program, as outlined by the late Michael Mentzer, is low force (to minimize injuries) and high intensity (drawing upon the body's full reserves). This program also contradicts usual practice, which has athletes lifting every day. Mentzer, a world class bodybuilder, found that a limited number of repetitions to failure were sufficient to stimulate muscle growth, as long as there was an adequate period of recovery following the training stimulus. When first espoused, the idea of doing a limited number of intense repetitions and then staying out of the gym during the recovery phase was heretical. Now it is the backbone of many successful approaches to bodybuilding and strength training.
As Mentzer noted, the idea of TTF is itself a reflection of a principle in exercise physiology called SAID: Specific Adaptation to Imposed Demands. The body, according to SAID, will develop along the lines of the demands imposed upon it. If you impose intensive demands upon a muscle set, that set will develop more than others that have not been challenged. The opposite of SAID is deconditioning: the absence of demand upon the musculoskeletal system. Astronauts in space for a considerable period of weightlessness lose body mass due to deconditioning and, at times, have had to be carried from their spacecrafts due to a loss of strength. Their bodies adapted to the absence of demand.
The vast majority of people live their lives the way uninformed athletes train: they take on too many demands, none of which are sufficiently intense to take them to failure. Theirs is the equivalent of lifting a twenty-pound barbell for hours on end. They become tired, but not strong. By the time they get old, they are chronically tired, and then retire from all demands. For many, retirement is an exercise in mental, physical, and spiritual deconditioning.
Truly great people live their lives on a TTF basis. They challenge themselves until they fail, and that provides new challenges. They ultimately succeed, because the challenges that produce failure also build their adaptive capacity. Their minds and their personalities exhibit SAID: they adapt to imposed demands.
Now ask yourself: If you trained in the weight room as hard and as smart as you train for trading success, how strong would you be?
The reality is that few traders train at all, and those that do rarely impose demands on themselves that require growth and adaptation. The bodybuilder knows that effort is a friend, a stimulus to development. You push yourself to your limits, and then you adapt to those imposed demands. In simulated trading--and in the practice that comes from trading small size--it is not enough to concentrate and focus: you develop the capacity to operate in "the zone" by testing the limits of your mental stamina. Similarly, don't just follow your trading ideas; test them until they break. Then you'll be able to figure out where they are weak and how you can fix them. We cannot know our limits unless we are willing to venture beyond them. Mentzer realized that, to become the person you know you can be, you have to do more than you think you can do. Paradoxically, you will find your greatest freedom, in the gym and in life, in the imposition of your most stringent demands.
Bio:
Brett Steenbarger, Ph.D. first corresponded with the late Mike Mentzer in April, 2000 (see the "Testimonials" section of Mike's site). Brett is Associate Clinical Professor of Psychiatry and Behavioral Sciences at SUNY Upstate Medical University in Syracuse, NY and author of The Psychology of Trading (Wiley, 2003). As Director of Trader Development for Kingstree Trading, LLC in Chicago, he has mentored numerous professional traders and coordinated a training program for traders. An active trader of the stock indexes, Brett utilizes statistically-based pattern recognition for intraday trading. Brett does not offer commercial services to traders, but maintains an archive of articles and a trading blog at www.brettsteenbarger.com.
Becoming the Person You Know You Can Be
Brett N. Steenbarger, Ph.D.
www.brettsteenbarger.com
Note: A version of this article appeared on the Trading Markets site the week of 10/3/05.
This is one of my shortest articles, and it may be one of my most important.
In bodybuilding, there is a principle known as "train-to-failure" (TTF). The idea is that you lift that amount of weight that permits you at least ten repetitions, but continue the lifting to the point of failure: the point at which you can no longer sustain the repetitions. Such a heavy-duty program, as outlined by the late Michael Mentzer, is low force (to minimize injuries) and high intensity (drawing upon the body's full reserves). This program also contradicts usual practice, which has athletes lifting every day. Mentzer, a world class bodybuilder, found that a limited number of repetitions to failure were sufficient to stimulate muscle growth, as long as there was an adequate period of recovery following the training stimulus. When first espoused, the idea of doing a limited number of intense repetitions and then staying out of the gym during the recovery phase was heretical. Now it is the backbone of many successful approaches to bodybuilding and strength training.
As Mentzer noted, the idea of TTF is itself a reflection of a principle in exercise physiology called SAID: Specific Adaptation to Imposed Demands. The body, according to SAID, will develop along the lines of the demands imposed upon it. If you impose intensive demands upon a muscle set, that set will develop more than others that have not been challenged. The opposite of SAID is deconditioning: the absence of demand upon the musculoskeletal system. Astronauts in space for a considerable period of weightlessness lose body mass due to deconditioning and, at times, have had to be carried from their spacecrafts due to a loss of strength. Their bodies adapted to the absence of demand.
The vast majority of people live their lives the way uninformed athletes train: they take on too many demands, none of which are sufficiently intense to take them to failure. Theirs is the equivalent of lifting a twenty-pound barbell for hours on end. They become tired, but not strong. By the time they get old, they are chronically tired, and then retire from all demands. For many, retirement is an exercise in mental, physical, and spiritual deconditioning.
Truly great people live their lives on a TTF basis. They challenge themselves until they fail, and that provides new challenges. They ultimately succeed, because the challenges that produce failure also build their adaptive capacity. Their minds and their personalities exhibit SAID: they adapt to imposed demands.
Now ask yourself: If you trained in the weight room as hard and as smart as you train for trading success, how strong would you be?
The reality is that few traders train at all, and those that do rarely impose demands on themselves that require growth and adaptation. The bodybuilder knows that effort is a friend, a stimulus to development. You push yourself to your limits, and then you adapt to those imposed demands. In simulated trading--and in the practice that comes from trading small size--it is not enough to concentrate and focus: you develop the capacity to operate in "the zone" by testing the limits of your mental stamina. Similarly, don't just follow your trading ideas; test them until they break. Then you'll be able to figure out where they are weak and how you can fix them. We cannot know our limits unless we are willing to venture beyond them. Mentzer realized that, to become the person you know you can be, you have to do more than you think you can do. Paradoxically, you will find your greatest freedom, in the gym and in life, in the imposition of your most stringent demands.
Bio:
Brett Steenbarger, Ph.D. first corresponded with the late Mike Mentzer in April, 2000 (see the "Testimonials" section of Mike's site). Brett is Associate Clinical Professor of Psychiatry and Behavioral Sciences at SUNY Upstate Medical University in Syracuse, NY and author of The Psychology of Trading (Wiley, 2003). As Director of Trader Development for Kingstree Trading, LLC in Chicago, he has mentored numerous professional traders and coordinated a training program for traders. An active trader of the stock indexes, Brett utilizes statistically-based pattern recognition for intraday trading. Brett does not offer commercial services to traders, but maintains an archive of articles and a trading blog at www.brettsteenbarger.com.
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Sisters +$
Sisters (Db
) and market pulse
I always look at the big sisters of smh, qqqq and iwm, for correlation and have a NQ order book open to snap judge the overall tech. markets micro speed and momentum.
$
yes I trade real $ and my goal is .5%/tradingday on trading stake (or more!). Try to achieve this with minimal size(TTF).
Sisters (Db
) and market pulseI always look at the big sisters of smh, qqqq and iwm, for correlation and have a NQ order book open to snap judge the overall tech. markets micro speed and momentum.
$
yes I trade real $ and my goal is .5%/tradingday on trading stake (or more!). Try to achieve this with minimal size(TTF).
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Intraday SMH returnframework
*optimise net return (after risk, costs, interest and tax)
*during (successive) price-rushes into
*anticipated (local) new and unhindered territory
*by timely scaling
*into a fiercely protected full position
Enter SMH:
1.1 Leading indicator: sister(s) fixed time BO.
1.2 Trigger: SMH BO in both fixed %price- and time-range.
1.3 Add: gradually take full position in lockstep with successive BO in SMH's current direction.
Protect SMH:
2.1 Staircase: of automatic trial stops.
2.2 Innitially: from the getgo the staircase is placed past recent technical %price-range formations.
Exit SMH:
3.1 Thightening: technical after decent favourable spike.
I will work with [2.1..2.2] until I have and can manage a superior exit strategy.
SOCRATES said:
*optimise net return (after risk, costs, interest and tax)
*during (successive) price-rushes into
*anticipated (local) new and unhindered territory
*by timely scaling
*into a fiercely protected full position
Enter SMH:
1.1 Leading indicator: sister(s) fixed time BO.
1.2 Trigger: SMH BO in both fixed %price- and time-range.
1.3 Add: gradually take full position in lockstep with successive BO in SMH's current direction.
Protect SMH:
2.1 Staircase: of automatic trial stops.
2.2 Innitially: from the getgo the staircase is placed past recent technical %price-range formations.
Exit SMH:
3.1 Thightening: technical after decent favourable spike.
I will work with [2.1..2.2] until I have and can manage a superior exit strategy.
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Submit to logical and effective thinking and acting while you make money trading
Originally Posted by Joe Ross
EMOTIONS
I love to watch the Rambo movies from the point of view of what can be done with trading. The character Rambo is a well-oiled fighting machine. He is entirely focused and unemotional. He has a job to do and knows how to handle adversity. He can deal with any eventuality. Emotions are not a part of his character. He is simply fiercely determined to get the job done. Rambo should be the role-model for everyone who aspires to trade.
How did Rambo get to be an unemotional fighting machine? He did it through intensive combat training. This is not unlike what a trader must do: Train himself to execute without emotion. Once you learn to take the emotion out of your trading, you will find that trading is amazingly simple. You will be able to think and act logically while you make money trading.
Joe Ross
Originally Posted by Joe Ross
EMOTIONS
I love to watch the Rambo movies from the point of view of what can be done with trading. The character Rambo is a well-oiled fighting machine. He is entirely focused and unemotional. He has a job to do and knows how to handle adversity. He can deal with any eventuality. Emotions are not a part of his character. He is simply fiercely determined to get the job done. Rambo should be the role-model for everyone who aspires to trade.
How did Rambo get to be an unemotional fighting machine? He did it through intensive combat training. This is not unlike what a trader must do: Train himself to execute without emotion. Once you learn to take the emotion out of your trading, you will find that trading is amazingly simple. You will be able to think and act logically while you make money trading.
Joe Ross
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Market Master evolution loop
Awarness/Understanding market behaviour: Dbphoenix, ASC, Socrates, Darkhorse inspired
Expertise to recognise and play opportunities: Larry Livingston, Dphoenix, Socrates, Acrary, No_pm inspired
Real time Pragmatism: Chartman, Nitro, Ken Boyd inspired
Scalp target market: RianAir, Futurestrader inspired
Conviction:young Hitman inspired
Acrary, No_Pm, Nitro, Hitman and Futurestrader are contributors on elitetrader. RianAir is very sharp airline prizefighter.
Ken Boyd is a jetfighterpilot. The rest of the contributors are from t2w. I wont introduce Larry Livingston. This is a rough draft of the paradigms I use to continuous refine my trading skill while i address and eliminate my major personal "f...ups" and blind-spots one by one.
So all in all, I am inspired to master the loops and cycles i choose better, step by step. Taking time to reread and understand and religiously IMPLEMENT concepts of these posters and adjust my behaviour again and again brings me closer to mastery.
...............or how to get from making lunch money to stable economic freedom, without facing substantial ruin(to often).
In my world the concepts of Dbphoenix and Socrates complete each other. :|
Awarness/Understanding market behaviour: Dbphoenix, ASC, Socrates, Darkhorse inspired
Expertise to recognise and play opportunities: Larry Livingston, Dphoenix, Socrates, Acrary, No_pm inspired
Real time Pragmatism: Chartman, Nitro, Ken Boyd inspired
Scalp target market: RianAir, Futurestrader inspired
Conviction:young Hitman inspired
Acrary, No_Pm, Nitro, Hitman and Futurestrader are contributors on elitetrader. RianAir is very sharp airline prizefighter.
Ken Boyd is a jetfighterpilot. The rest of the contributors are from t2w. I wont introduce Larry Livingston. This is a rough draft of the paradigms I use to continuous refine my trading skill while i address and eliminate my major personal "f...ups" and blind-spots one by one.
So all in all, I am inspired to master the loops and cycles i choose better, step by step. Taking time to reread and understand and religiously IMPLEMENT concepts of these posters and adjust my behaviour again and again brings me closer to mastery.
...............or how to get from making lunch money to stable economic freedom, without facing substantial ruin(to often).
In my world the concepts of Dbphoenix and Socrates complete each other. :|
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mastering scalping
understand current market conditions
is timing, sizing, protection in the action plan:
-to the point?
-sufficiently profitable and bullet-proof?
-comfortably installed and running>
in light of current dominant market conditions:
-execute plan
-refine plan
understand current market conditions
is timing, sizing, protection in the action plan:
-to the point?
-sufficiently profitable and bullet-proof?
-comfortably installed and running>
in light of current dominant market conditions:
-execute plan
-refine plan
Attachments
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To Be
Eliminate inferior operations
-entry against current trend/momentum, entry in flatish noise, wrong timing, trading without iatps
-oversize, in revenge because opportunity- or money-loss, potential <mrtt
-preemptive kill of rest potential by nervous manual tightening of iatps
Isolate opportunities
Price moves back and forth between plain noise and periods with less noise. In periods with less noise price moves away from recent noise on the wings of the "current" direction. Price does so by spiking away, trending away or by (partly) reversing recent significant directional price efforts. Price is in a mcdm when the move away from noise is confirmed by its own action and and preferably also confirmed by other correlated inter-market phenomenon.
Opportunities are mcdm where the expectation of a marketorder, allowing for gross average cost of iatps, exceeds mrrt.
Pre Trading preparation
-produce map connecting smipra
-timing/importance of upcoming economic calendar events and company earnings
Enter new-position Both Sides
-between 9:40:15:20 (preceding a holiday or weekend 9:40:11:40)
-wait for opportunity in live smipra context and enter timely within opportunity window
-if price or inter-market gives confirmations, timely (re)enter always within successive opportunity windows
-entry order is limit (or market)
Exit
-install iatps on all open positions and then, to take advantage of big favourable spikes, manually adjust iatps
Capital protection
-abruptly halt entering new positions if mill is hit during trading-day
-after a vacation or whenever mill was hit, bring size to mts until new 2*mill profit is earned
-oc > 0
Where:
mcdm = micro clear directional move
mrrt = minimum potential reward average risk threshold
smipra = significant multi-day inter-market price reaction area's
iatps = immediate auto trail protection shield
mill = maximum intra-day loss limit
mts = minimuml tradingsize
oc = overnight cash
Eliminate inferior operations
-entry against current trend/momentum, entry in flatish noise, wrong timing, trading without iatps
-oversize, in revenge because opportunity- or money-loss, potential <mrtt
-preemptive kill of rest potential by nervous manual tightening of iatps
Isolate opportunities
Price moves back and forth between plain noise and periods with less noise. In periods with less noise price moves away from recent noise on the wings of the "current" direction. Price does so by spiking away, trending away or by (partly) reversing recent significant directional price efforts. Price is in a mcdm when the move away from noise is confirmed by its own action and and preferably also confirmed by other correlated inter-market phenomenon.
Opportunities are mcdm where the expectation of a marketorder, allowing for gross average cost of iatps, exceeds mrrt.
Pre Trading preparation
-produce map connecting smipra
-timing/importance of upcoming economic calendar events and company earnings
Enter new-position Both Sides
-between 9:40:15:20 (preceding a holiday or weekend 9:40:11:40)
-wait for opportunity in live smipra context and enter timely within opportunity window
-if price or inter-market gives confirmations, timely (re)enter always within successive opportunity windows
-entry order is limit (or market)
Exit
-install iatps on all open positions and then, to take advantage of big favourable spikes, manually adjust iatps
Capital protection
-abruptly halt entering new positions if mill is hit during trading-day
-after a vacation or whenever mill was hit, bring size to mts until new 2*mill profit is earned
-oc > 0
Where:
mcdm = micro clear directional move
mrrt = minimum potential reward average risk threshold
smipra = significant multi-day inter-market price reaction area's
iatps = immediate auto trail protection shield
mill = maximum intra-day loss limit
mts = minimuml tradingsize
oc = overnight cash
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I believe(According to illiquid)
Do I believe there are "perfect" entries and exits on any given trade, given a certain time frame, given one's powers of perception and overall "edge" in sizing up the situation? Relatively speaking, I would say yes, and my job is to find them.
Do I believe there are "perfect" entries and exits on any given trade, given a certain time frame, given one's powers of perception and overall "edge" in sizing up the situation? Relatively speaking, I would say yes, and my job is to find them.
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Fully embraced my own conception( according to illiquid)
I feel I only turned a corner a short while ago. But the thing of it is -- I knew what I wrote to be true years back, yet it wasn't until I realized, developed, and fully embraced my own conception of what kind of trader I wanted to be and understood how I could successfully interact with the markets before all those issues at the root of sabotage began to dissipate. Things just kind of fell into place and made sense, without me needing to push/punish myself as I'd tried before in effort to maintain control.
I feel I only turned a corner a short while ago. But the thing of it is -- I knew what I wrote to be true years back, yet it wasn't until I realized, developed, and fully embraced my own conception of what kind of trader I wanted to be and understood how I could successfully interact with the markets before all those issues at the root of sabotage began to dissipate. Things just kind of fell into place and made sense, without me needing to push/punish myself as I'd tried before in effort to maintain control.
mcdm smh
rough study on what micro clear directional movements i saw in SMH last 23 and 27 December.
Price is displayed in fixed money candles of 6 cents, not time-movement but price-movement is my main focus on my tradingvehicel. In that respect any 6 cents range on SMH is noise to me. I also look at the the SMH-sisters QQQQ and intc
for confirmation of mcdm in SMH. With sisters I do look normal 5 minute candles , to see if a mcdm in SMH is underpinned by the timing of these sisters.
Notice 23 was a friday(before a holiday weekend) so my plan prescribes I shouldn't not have taken a position at the last a-noted mcdm at 12:33.
rough study on what micro clear directional movements i saw in SMH last 23 and 27 December.
Price is displayed in fixed money candles of 6 cents, not time-movement but price-movement is my main focus on my tradingvehicel. In that respect any 6 cents range on SMH is noise to me. I also look at the the SMH-sisters QQQQ and intc
for confirmation of mcdm in SMH. With sisters I do look normal 5 minute candles , to see if a mcdm in SMH is underpinned by the timing of these sisters.
Notice 23 was a friday(before a holiday weekend) so my plan prescribes I shouldn't not have taken a position at the last a-noted mcdm at 12:33.
Attachments
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more mcdm on SMH
Prep for tomorrow. mdcm 1,2,3 and 5 (are in hindsight) valid opportunities.
mdcm 4 doesn't qualify as a opportunity as it doesn't even penetrate recent high.
the aim in studying these hindsight charts is to further the unbiased development of:
1-a standardised pre-market preparation process
2-a standardised filter to timely isolate a opportunity from the barrage of mcdm that are born every trading-day
3-a standardised procedure for timely and relatively safely entering these opportunities
4-a standardised filter to timely spot handicapped opportunities that fail or halt to manifest sufficient form
5-a standardised procedure for the timely exit of these handicapped opportunities
6-adaption and installation of the above to the challenge of real time recognition and execution
Prep for tomorrow. mdcm 1,2,3 and 5 (are in hindsight) valid opportunities.
mdcm 4 doesn't qualify as a opportunity as it doesn't even penetrate recent high.
the aim in studying these hindsight charts is to further the unbiased development of:
1-a standardised pre-market preparation process
2-a standardised filter to timely isolate a opportunity from the barrage of mcdm that are born every trading-day
3-a standardised procedure for timely and relatively safely entering these opportunities
4-a standardised filter to timely spot handicapped opportunities that fail or halt to manifest sufficient form
5-a standardised procedure for the timely exit of these handicapped opportunities
6-adaption and installation of the above to the challenge of real time recognition and execution
Attachments
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opportunities in smh(rough defenition)
In my main attached chart for detecting setups, I fixed the price range of candles to 6 cents, so time spend in any candle can differ.
My central scalping interest is under what conditions does a micro clear directional move advertises that its is (not yet/anymore) fit to be an interesting opportunity? This always in the context of recent price behaviour and the inevitable life-cycle of all opportunities.
Th 12-29-2005 I saw opportunities around 9:45, 12:00 and 15:00. The first one, from about 9:45, is a clear rejection of the 12-28 high.
Opportunities I focus on are (always) triggered by (2 or 3) significant fixed price-range candles (of same colour). An other important condition is that price is moving away from S+R, a base, an imploding spike or clearly trending.
For a long position. Bar1 must have a big up body of preferably the full 6 cent range.
If bar2 also seems to get a noticeable up body, the intent is still dominant. Further, if bar2 is getting a sufficient non overlap with recent noise, it is a opportunity candidate. In case bar2 doesn't comply fully, bar3 can still become a opportunity if it exceeds bar2 and has sufficient non overlap with recent noise.
In general:
First reversal plays after a bigger up/down move can be entered preferably on bar3, after price is clearly moving away from top/bottom/noise/ and all the nasty false attempts. This prudence is in the light of the danger of being wiphwashed while bottoming or topping. Bo of a base can be entered on bar2 or bar3 depending on the width of the base, while trend continuations, if feasible, should preferably be entered in bar2 to optimise rest potential at entry.
For longs I see logical initial stops area's at:
a] low bar1
b] (current) low bar2
c] (a]+b])/2
When entering in bar2, initial stops will be placed past a] and b].
When entering in bar3, initial stops will be placed past b] and c].
I will analyse all trading-days of January 06 in an order to futrher build an adapt my approach to the reality of SMH.
Focus is the potential/risk of entering a SMH position during bar2( or bar3) of 2 or 3 subsequent same coloured bars when at the same time SMH (and the chosen inter-market) is moving away from important context dependent noise area's.
In my main attached chart for detecting setups, I fixed the price range of candles to 6 cents, so time spend in any candle can differ.
My central scalping interest is under what conditions does a micro clear directional move advertises that its is (not yet/anymore) fit to be an interesting opportunity? This always in the context of recent price behaviour and the inevitable life-cycle of all opportunities.
Th 12-29-2005 I saw opportunities around 9:45, 12:00 and 15:00. The first one, from about 9:45, is a clear rejection of the 12-28 high.
Opportunities I focus on are (always) triggered by (2 or 3) significant fixed price-range candles (of same colour). An other important condition is that price is moving away from S+R, a base, an imploding spike or clearly trending.
For a long position. Bar1 must have a big up body of preferably the full 6 cent range.
If bar2 also seems to get a noticeable up body, the intent is still dominant. Further, if bar2 is getting a sufficient non overlap with recent noise, it is a opportunity candidate. In case bar2 doesn't comply fully, bar3 can still become a opportunity if it exceeds bar2 and has sufficient non overlap with recent noise.
In general:
First reversal plays after a bigger up/down move can be entered preferably on bar3, after price is clearly moving away from top/bottom/noise/ and all the nasty false attempts. This prudence is in the light of the danger of being wiphwashed while bottoming or topping. Bo of a base can be entered on bar2 or bar3 depending on the width of the base, while trend continuations, if feasible, should preferably be entered in bar2 to optimise rest potential at entry.
For longs I see logical initial stops area's at:
a] low bar1
b] (current) low bar2
c] (a]+b])/2
When entering in bar2, initial stops will be placed past a] and b].
When entering in bar3, initial stops will be placed past b] and c].
I will analyse all trading-days of January 06 in an order to futrher build an adapt my approach to the reality of SMH.
Focus is the potential/risk of entering a SMH position during bar2( or bar3) of 2 or 3 subsequent same coloured bars when at the same time SMH (and the chosen inter-market) is moving away from important context dependent noise area's.
Attachments
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Preparation/Postanalysis Jan 3: grow objective control
Pre
-economic Cal ender
Construction Spending and ISM Mfg Index 10:00
FOMC Minutes 2:00 ET
-company earnings
nihil
-reaction areas SMH and related markets
SMH=INTC=QQQQ
37.65==26.00=41.00=resistance 2
37.10==25.50=40.80=resistance 1
36.50==24.90=40.40=support 1
36.00==24.60=40.00=support2
Post
11 opportunities on mayor positive day, Im wondering how this will work on a noisy day
.
To make biog money at this you need to maximize objective control
Trail stop method needs attention.
Attention for high expectancy/low risk opportunities in SMH where QQQQ and INTC are not only are giving
positive signals but also have a substantial unhindered price potential
Observation:
at 14:01 price rose on fomc news 43 cents in 18 min and 45 seconds. These 7 "big" body collorbars are an example of the hig end of how a potential trade under ideal conditions could perform.
Rules:
-only enter after move away from noise (out of the box)
-only enter in in direction momentum
-only enter if there is sufficient vertical travel-room for price
-only enter if risk of a stop out is low
-immediate placement of initial stop
Hard issues to focus on in 2006:
-eliminate f...s
-get closer to potential reality
-preparation
-objective intra-day assessment of macro timing
-entry rules in line with current dominant intent
-timing and execution of entry
-placing initial stop
-trail stop tactics
-test ideas
Thoughts:
-HELR=high expectations low risk
-Grow maximum control
Pre
-economic Cal ender
Construction Spending and ISM Mfg Index 10:00
FOMC Minutes 2:00 ET
-company earnings
nihil
-reaction areas SMH and related markets
SMH=INTC=QQQQ
37.65==26.00=41.00=resistance 2
37.10==25.50=40.80=resistance 1
36.50==24.90=40.40=support 1
36.00==24.60=40.00=support2
Post
11 opportunities on mayor positive day, Im wondering how this will work on a noisy day
.
To make biog money at this you need to maximize objective control
Trail stop method needs attention.
Attention for high expectancy/low risk opportunities in SMH where QQQQ and INTC are not only are giving
positive signals but also have a substantial unhindered price potential
Observation:
at 14:01 price rose on fomc news 43 cents in 18 min and 45 seconds. These 7 "big" body collorbars are an example of the hig end of how a potential trade under ideal conditions could perform.
Rules:
-only enter after move away from noise (out of the box)
-only enter in in direction momentum
-only enter if there is sufficient vertical travel-room for price
-only enter if risk of a stop out is low
-immediate placement of initial stop
Hard issues to focus on in 2006:
-eliminate f...s
-get closer to potential reality
-preparation
-objective intra-day assessment of macro timing
-entry rules in line with current dominant intent
-timing and execution of entry
-placing initial stop
-trail stop tactics
-test ideas
Thoughts:
-HELR=high expectations low risk
-Grow maximum control
Attachments
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