Hi, welcome my friend. What I do here my friend is Advanced Trading and investing. I do not teach basics. There are other free places that provide basics in trading. That does not mean you cannot follow along if you are new.
Here most understand and follow MMT (Modern Monetary Theory) which is an accurate description of how monetary system actually works on a Macro level. Since money is the lubricant for the economy it gives us unique insight into Macro Economics. This understanding then helps us make good decisions in investing. In all asset classes. stocks, Indexes, bonds, FOREX, Real Estate etc.. BUT Macro economics is like an aircraft carrier trying to make a 90 degree turn, it is very slow. That does not mean that events do not take place that suddenly change the landscape. For example, US credit rating down grade, Oil Collapse, QE, BREXIT, etc..
Since we know Macro is slow and nothing moves in a straight line on a chart when investing, we need another tool to help us contrast MMT. I use what I call “bare knuckle charting”. Which is only concerned with what is displayed on a plain, clean, simple chart. Why? Occam’s razor. Another way of saying it is that the more assumptions you have to make, the more unlikely an explanation is. Therefore any single thing more than just price on a chart skews the data and clutters the mind.
So how do we analyze a chart? A chart is like a CT Scan. Using very simple waves and patterns that form a structure. In combination they produce Fractals which are obviously repetitive. Once we know what we are looking at, we can determine what is likely to come next. Thus we start looking for clues that continue to support what we see. If at any time the structure changes into something we were not expecting we stop out. I DO NOT stop out on a break of some silly line or whatever. Price and Structure is paramount in charting.
The hardest part for people, is to unlearn what the media, books, seminars, websites teach them and get rid of extremely bad habits! For example, people believe that the way you make money is by GUESSING better than the next guy. WRONG! The opposite is true. ZERO guessing. We do not make predictions, we have no clue what will happen next. We only know what is LIKELY to occur based on MMT and Charting. We don’t trade News events, listen to media, pundits, follow every economic data point, conspiracies, politics, use backwards looking oscillators, bots, candle sticks, wicks, moving averages, vague hunches and feelings. NOTHING! It all goes back to Occam’s razor. We must make things as simple as possible but no simpler than that. Everything we do here has been tested and proven to work the majority of the time. If it does not fit that description we throw it out.
In conclusion, I post charts here in real time almost daily of what is likely to happen. Your job is to study the charts and replicate USING A DEMO ACCOUNT. Not real money. You then go off and look for similar structures, set ups, in real time chart you like and send me the analysis you did on it in messenger. I will correct and explain why. Over time you will get the hang of it.
What you will find immediately is that your trades will be taken at key levels with good risk reward and your stop outs will be small with much more meaning. Next thing that will occur is your winning trades will become bigger than your losses. Thus your trading will improve dramatically. This will start to train your Basal Ganglia, the part of your brain that stores habits. Habits to form require three things, cue, routine, reward. Eventually you will not be able to help yourself from taking good risk reward trades. Because your eyes will only see what they are supposed to see. Winning, comes from knowledge which than becomes a habit that require almost no thought process what so ever. It’s automatic. Never will you fear a chart, or have anxiety. Why? Because you have knowledge and good money management. No matter what happens you are fine with it, because you know over time your profits will consistently build up. Which is why you MUST use demo accounts. No fear. As you gain knowledge you will transfer to real money taking small trades and slowly building it up. NEVER EVER should you feel fear, stressed or pain under no circumstances!
- Hinders decision making.
- Learning processes seizes.
- Good habits are destroyed and replaced with bad ones.
- YOU WILL BLOW OUT YOUR ACCOUNT! WITH 100% CERTAINTY!
Trading investing must ALWAYS be pleasurable at all times. Even if you lose money 10 times in a row.
Lastly, let me make something clear. The goal is not to sit in front of a computer your entire life and trade in and out. The goal is to analyze big time frames in charts with MMT understanding, set it and forget it. Because Fractals apply to all time frames. I use smaller time frames to teach concept and application simultaneously which accelerates the learning process. Once that is learned, you will move out and only take the real big trades with massive moves. If you are board and want to trade smaller time frames the skill is the same. no different.
Getting started tool chest
SEVEN DEADLY INNOCENT FRAUDS OF ECONOMIC POLICY
The National Deb(i)t by Edward Delzio
US national Debt Part 1
US National Debt part 2
Investing MMT – PART 1
Investing MMT – PART 2
This should get you started. 🙂