02 Feb The proof is in the pudding
It’s been a while since I last uploaded a blog post. I decided to focus more on the actual trading than on uploading blog posts. At times it felt like that was the only thing that I was doing. It wasn’t but I feel like trading is more important than writing in my opinion. I enjoy writing but I set out to master trading. Not writing. With that said, let me give you another update on where I stand.
Click here for my disclaimer. It basically says that I am on my path to becoming a trader and these are just my opinions on how to approach learning to trade. Feel free to check it out and comment on it.
Here it goes…
The obstacle is the way
A good friend told me about this some time ago and it resonated big time with me. However, me being stubborn, I don’t always listen. Since this is a very personal challenge I write it off as just part of my path. These obstacles in trading are represented by this voice in my head. This voice tells me what I ‘should’ be doing. For some reason it always takes me a while to start listening to it. This time the voice said to analyze the patterns in accordance with its overall trend and ‘context’. Meaning I shouldn’t just look at individual patterns on the 1M chart but analyze it in conjunction with bigger time frames. For this reason I have decided to look at the 15M chart for overall ‘context’ of the current standing of the market. The 1H chart for its relation to where we stand on a bigger scale. The 5M chart for entry and exit points.
Bringing it all together
So I spent a long time analyzing individual patterns. Meaning patterns on its smallest scale if that makes sense. I had already spent some time on trendlines, channels, etc. What I am doing now is bringing them all together. When certain patterns coincide with trendlines I call these a point-of-interest. Because here is the point that something might be happening. That something is then for me to decide. I do this by looking at the price action in the form of candlesticks to give me a better understanding of which way I think it’s going to go. So at this point I am bringing chart patterns, trend lines, and candlesticks together to make an educated decision on taking a trade or not.
What am I doing wrong?
Trading is not about trading. It is not about the ‘act’ of trading. It is about waiting for the best opportunity to take a trade. Meaning I should be trading everything that I have an opinion on. This is usually where it goes wrong in my trading. When I stick to my plan to only trade in the direction of the overall trend in conjunction with my other criteria, I do well. So this is what I should keep focussing on. And that is what I’ll do.
The proof is in the pudding.
The same friend that told me about the obstacle is the way told me another one. “The proof is in the pudding”. I gotta keep reminding myself of this every day. I will get the pudding and (Trump’s voice) “It’s gonna be the best pudding you have ever had”. My goal is to shut my friend up about this damn pudding. So watch out for my pudding. Yeah talking about you. Less talking. More pudding making.