Getting Started

Break Free of Old Trading Ideas

The title of this article alone is likely to raise the hairs on the back of many necks. The thought of pushing away concepts and ideas used for decades may sound ludicrous to you, but allow me to elaborate.

Old and proven ideas should never be pushed aside. Rather, the old ideas that have not proven effective and have prevented many from progressing towards a positive goal, these need to be shed. And there are plenty of them.

Some of these old ideas are that the futures and commodity markets cannot be forecasted because the patterns are random. Other old ideas are that you cannot make a success at trading unless you know the fundamentals of the market you wish to trade. And there is the old ideas that to make a success you must depend on what everyone else is using, common indicators such as the moving average, bands, oscillators and the like. Sure, they have their place in market analysis, and I certainly find some of them very useful. But they fall short of the ideal. Everyone is using them and most are failing miserably in the process. The old ideas have not lived up to all the hype they continue to get today.

If you hold fast to these old ideas, you may be holding yourself back from reaching your full potential as a trader. False concepts and beliefs are negative ones; negative ideas and beliefs can deaden your insights and blind your way. Taking a dogmatic stand that these old ideas are the only way leaves no room for greater insight and growth.

The world around us is bigger than we can ever imagine, with its many secrets waiting to be tapped by the individual not afraid to break the mode of adhering to old ideas and take some radical steps. W.D. Gann was recorded to be such an individual, and reading his material only exposes part of the psyche that made up this man?s drive for perfection. He stepped outside the bounds of acceptable trading approaches and was greatly rewarded. As we say today, he thought ‘outside the box’.

Many traders having a hard time gaining confidence in their own trading and not achieving their goals in this business, often find themselves relying on others to tell them what to do.

It is one thing to be taught by someone and another to allow someone to lead you by your nose every trading minute of your life. It is one thing to read books and newsletters providing useful content and then make the final decision your own, than to simply enter and exit trades on the words of another without ever giving thought as to what you just did.

If you are one who has very little confidence making your own trading decisions, then it is likely you are not working to break out of the mold that has so many trapped with indecision. It is time to break free and expand your horizons.Think back to all that others told you was no good in trading and consider the possibility; could they have led me astray by believing them?

Do something different, something that may even be against your grain. Weight trainers know that at times you are going to reach a plateau and not get any bigger or stronger. Dieters have also found their weight loss stopping at some mid-goal value. The solution to these problems has always been to ‘change’ something. If what you are doing now is not changing anything to your liking, do you think continuing to do the same thing is going to produce a different result? Of course not.

Trading is no different. Because it is heavily psychological, our thinking may reach a plateau because we keep to old ideas. Now if you are happy with where you are, then by all means you don?t want to make any changes. A weight lifter may like where he is at, or maybe the person losing weight. No changes of routine need be done at that point. However, since we are addressing those who have no confidence in their trading and have reached a plateau in their trading skills and development, it is time to shock the system.

T. F. Ellis (1860) once said, "Knowledge advances by steps, and not by leaps." Do not be overwhelmed by the amount of information available on trading. Be extremely happy it exists! Start studying subjects about trading you never thought you would have before.

Have you always stayed away from learning Cycle Analysis because of what Bob down the street told you a couple years ago, or what you read in some magazine or newsgroup? Then break free from listening to the Bob?s of the world and do it anyway. So why am I bringing up ‘Cycle Analysis’? Because it is a subject that most traders know little about, and it is one of the most effective approaches towards precision timing your trades. The problem is, it requires that you ‘break away from old ideas’ and ignore the naysayers. Can you do that?

Even if you do not turn to cycle analysis for your timing needs, you will at least have expanded your horizon and given your body an extra boost to get past that plateau if you at least explore it indepth. But do not stop there, keep expanding, keep shocking your mind and body. Each plateau you overcome will bring you closer to becoming a more confident trader. It will also make you a better conversationalist over coffee or wine.

Richard started his career for 19 years in Computer Technologies/Programming. He started trading Futures and Commodities in 1989 and went on to start ProfitMax Trading Inc. in 1996, specializing in forecasting market turns in advance and producing specialized forecasting software applications for traders for the purpose of Precision Timing the Futures, Commodity and Forex markets.

Richard started his career for 19 years in Computer Technologies/Programming. He started trading Futures and Commodities in 1989 and went on to start ...

timsk

Legendary member
6,921 1,799
To paraphrase Disraeli, I confess at times to 'being intoxicated by the exuberance of my own verbosity'. Even so, had I contributed this article, this is what I would have written:
1. If what you're doing ain't working, do something different.
2. Cycle analysis is where it's at.
The rest is just padding.
Tim.
 

0007

Senior member
2,201 544
To paraphrase Disraeli, I confess at times to 'being intoxicated by the exuberance of my own verbosity'. Even so, had I contributed this article, this is what I would have written:
1. If what you're doing ain't working, do something different.
2. Cycle analysis is where it's at.
The rest is just padding.
Tim.
Timsk - agree with your assessment. But despite all the verbiage of modern-day writing, if you can extract the essence (as indeed you have done) then there is much to be learned and exploited from this article & others. Very few people can write concisely and there appears to be a myth that more text = more knowledge. Churchill said that he could have written shorter communications if he'd had more time!

Your point 1. is a great pearl - I've always found it a natural tendency to carry on the same because "I know it should work" - funnily enough, when I stop, consider and try a different tack, things move on (not always for the best, but doing nothing usually achieves nothing unless it's when you need to be patient awaiting an entry).

Point 2. doesn't appear to have much of a following (on T2W` at least) - or is it just one of the best-kept secrets?
 
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timsk

Legendary member
6,921 1,799
Point 2. doesn't appear to have much of a following (on T2W` at least) - or is it just one of the best-kept secrets?
Fair points 007, you should write the next article as you express yourself every bit as well as Mr Ratchford! Re. point 2 (quoted), Grey 1's private 'Technical Trader' forum is the place to be if cycle analysis interests you. He's very big on it, just PM him requesting membership if you want to join.
Tim.
 

Crap Buddist

Senior member
2,458 289
Thought for the day!

Have idea's about the market as opposed to beliefs .For ideas are tradeable but a mans beliefs never should be.




Thank you very little.
 

dcraig1

Experienced member
1,604 243
If cycle analysis is "where it is at" (and I'm not saying it isn't) then how about some evidence or references. Even anecdotal evidence would be a bit interesting.

An article devoid of content.

For anybody interested in cycle analysis looking for a starting point you could try Hurst - "The Profit Magic of Stock Transaction Timing" as a starter. Written in the seventies, it's probably the first real attempt to put it on some empirical footing.
 

Crap Buddist

Senior member
2,458 289
I'm pissed , but upon finally reading this , I think the poster has had a fair few more than me. ! Total nonsense n bollox. LOL the world around us is bigger than we can imagine ? Are you on ****ing drugs from the sixties ? dont give up your day job, second thoughts, yes please do, I am eyeing a chateaux in marbella....

wank.
 

timsk

Legendary member
6,921 1,799
Are you on ****ing drugs from the sixties ? dont give up your day job, second thoughts, yes please do, I am eyeing a chateaux in marbella....
wank.
C_B,
Unless there's also a town in France called Marbella, I think you mean villa!
Hope you enjoyed your J. Arthur.
:cheesy:
Tim.
 

Crap Buddist

Senior member
2,458 289
ooopps! Cheers Tim, anythings possible on the goose juice. Strangley enough the article was easier going this AM. must of displaced my frustration of a warm beer on the author,sorry author.

I dunno maybe one day I learn to stop pratting around. I doubt it though. As for the chateaux in Marbella, yes silly idea,but, i found chateaux funnier and its use implied construction which would be slightly weighty in price over a villa. As for the J arthur, well I had a bowl of hot curry and it all went dark shortly after. :)

good weekend.

CB