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Hi,
This is not another one of those "XYZ has strong support at 56 and
the Gann angle suggests a target at 67" emails.
We all use different trading systems.
So some facet of my trading system, with regard to some particular
trading instrument, at one particular time, is of little interest and
even less utility to anyone, even the originator.
This email is about trading.
It is not about one aspect, of one view, of one stock, at one time as
perceived by one trader.
This email is intended to make you think, not
react. Winning traders tend to respond to the
market rather than react to the market. So
I challenge you respond not react to
this. You will know you are reacting
if your emotions are strongly engaged.
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Successful traders come in all shapes and sizes. The range of trading
systems and trading instruments and markets traded is enormous.
However, many successful traders appear to have many techniques in
common. Some of these secrets are documented at
www.traderscalm.com/calm.html
There was one common feature which I first mistook as a trading style
difference.
It is this 'concept' I now share with you.
Most traders, including many successful traders, spend a lot of time and
effort identifying good entry points.
This is usually done by studying the path of the market to this point -
based on chart patterns or moving average cut-overs and many other
approaches.
Most traders then use this analysis of prior market path (or patterns) to
predict market direction - so they can go on to trade market
direction.
Many of the successful traders seem to carry on with the market path
concept after identifying their entry point - they often do not trade
directionally at all, or only part of their approach relates to market
direction.
It is as if they are saying, "If I study the
path of the market for my understanding and for identifying
an entry point, I will continue trading market path because that
is what I know best."
One of the benefits that seems to accrue to this
approach is that the ego is not involved so much - as these traders are
not predicting direction - so there is no 'success' or 'failure' in
prediction of direction, because there is no directional
prediction.
One of the greatest inhibitors of calm - the ego - is often thus not
invoked.
And they do not need to talk about their predictions, because they have
none.
They are on to a virtuous circle of calm generating more calm.
The majority of traders appear to lose sight of the target - they track
market path and then aim at market
direction! Is it then surprising
that many miss the target - they were not looking for it!
For another approach to this concept and its implications see
www.traderscalm.com/droppingthebaton.html
and follow the hyperlinks.
I am glad you responded not reacted!
Trading with good feelings, Ric.
www.traderscalm.com
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