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RT'ers, Pease read the posts: "CIS TREX Opening Statement
Post # 1" and
"CIS Knowledge gained,The findings, and the Building of TGR
Post# 2"
before reading this post. :)
So, with TGR firmly in hand, now I had to build a trading
analogy which would help ME relate to all this.
This is also an interesting exercize for any trader, who by
taking analogies from his own knowledge, can apply
them to the markets, to make trading seem more understandable
and to make him a better trader.
For my Analogy, I chose the following definitions:
Large Commercials, Banks, and Producers are:
THE DRAGON - In Eastern lore, the Dragon, in edition to
wielding a tremendous degree of strength, also displays
a vast cunning, and worldly knowledge, which makes him a
formidable foe, and valuable ally. The natural food of the
Dragon in the markets are, tigers and philosophers. :)
Habits of movement are: Moves occassionally to another nicer
location, then likes to lay down and snooze awhile.
The dragon's consumptive practices lead to a "Bull" or "Bear"
market (See below for further info on Tigers, bulls, and bears.)
Large Specs (Very large individual traders or trading firms)
are:
THE TIGER - In Eastern lore, the tiger is balance and symmetry
coupled with tremendous speed and instinctive cunning. If you are
looking for an "action and re-action" type of fellow, the Tiger is
it. :) . Tigers can be tough, and you DO NOT want to be standing in
front of them when they are hungry. The natural food of the tiger
in the market is : Smaller Tigers, Bulls, Bears, and Philosophers.
Habits of movement are: Constantly active when hungry, predisposed
to be languid or non-confrontational when full.
The Tiger's consumptive practices are often what commercials refer to
as "churning", or smaller price action within the dominant trend.
The Floor Traders are:
Small Tigers (Micro Tigers ) - These traders are the ULTIMATE
action/reaction players in the market. They specialise in lightning
fast strikes at weak points of larger Tigers and the occassional
stupid Dragon, but with a real "taste" for small philosophers (traders)
: ) The Micro Tiger's natural food in the markets is : The occassional
weak or stupid Tiger, rarely, but sometimes a Dragon, smaller Tigers,
and
MOST OFTEN, philosophers. :)
Habits of movement are : Always hungry and active. Best for the
philosopher to trade only when he is SURE he isn't the one on the
menu. :)
Small Traders and "Off the Floor" traders are:
Market Philosophers - Philosophers lack the strength (financial equity)
or speed (Direct floor access) to be considered Tigers. The only premis
they have for being in the market is "direction" based on their study of
the consumptive practices of the above groups. Please note that the
philosopher is prefered Tiger food. Since All of the larger groups
routinely munch philosophers, it is no wonder that 95% of all
philosophers are eventually consumed. Philosophers represent the bottom
of the food chain, and can only be successful if they are able to
choose times when:
The Dragons are moving from one place to another.
The Tigers are too busy consuming each other or philosophers
who have shown up at the WRONG TIME.
The Tigers are attacking a Bull or Bear.
If the philosopher trades at times other than these, his tombstone
is already graven.
The Market itself we consider to be:
The Bull - An upward trending market created by and subject to the
consumptive practices of Dragons and Tigers.
The Bear - A downward trending market created by and subject to the
consumptive practices of Dragons and Tigers.
Bulls and Bears are dimwitted creatures, subject to terrible
rages. When the Tigers are attacking them, an awfull row can
ensue. Every once in a while this commotion wakes up a Dragon,
who will now be thoroughly P---ed AND hungry. Philosophers who
hang out on the Dragon's tail at such a time, can make good
money, and have the Dragon defend him from all the other critters
of the market. Just make sure he doesn't notice you hitching a
ride. :)
Places where Dragons and Tigers like to hang out:
Dragons loooove major moving averages. If you are near a major moving
average (an average MA set like 20/5 or 40/18 ) there will almost
always be a Dragon or two around.
Tigers are almost always found in the wooded terrain of support and
resistence. Philosophers placing a "resting stop" in these areas are
"Sleeping on the dinner table" . Philosophers MUST allow the Tigers
to begin feeding on other dumber philosophers, or each other, before
entering the market.
Finally, we have our system, and we have our "philosophy", so
it is time to put them to the test. :)
Please see the post : "CIS TGR Outlook and Trades Post #4"
Walt Downs
CIS Trading
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