My Journey In Technical Analysis
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Like this cup
From :theunboundedspirit.com
Nan-in, a Japanese master during the Meiji era (1868-1912), received a university professor who came to inquire about Zen.
Nan-in served tea. He poured his visitor’s cup full, and then kept on pouring.
The professor watched the overflow until he no longer could restrain himself. “It is overfull. No more will go in!”
“Like this cup,” Nan-in said, “you are full of your own opinions and speculations. How can I show you Zen unless you first empty your cup?”
We need to unlearn a lot ,accept the reality of the trading system and follow it as it is...this is what pro's do..
From :theunboundedspirit.com
Nan-in, a Japanese master during the Meiji era (1868-1912), received a university professor who came to inquire about Zen.
Nan-in served tea. He poured his visitor’s cup full, and then kept on pouring.
The professor watched the overflow until he no longer could restrain himself. “It is overfull. No more will go in!”
“Like this cup,” Nan-in said, “you are full of your own opinions and speculations. How can I show you Zen unless you first empty your cup?”
We need to unlearn a lot ,accept the reality of the trading system and follow it as it is...this is what pro's do..
Intraday segment covered its loss and entered into profit,but all other ended in red 
View attachment 33095
View attachment 33095
Any trading style will have three scenarios 1.Breakout(BO) ,2.Fake out(FO), 3.Pull back(PB) , increase of cost with respective to Margins,cost of trading,along with RR prospective i got to the conclusion to select with any one of the above, i opted for PB,what are common points in this we may miss a trade which doesn't have a PB ,but that will be part of the process,which i have connected..
As in words of Linda Raschke’s only four principles are there for price
Principle One: A Trend Has a Higher Probability of Continuation than Reversal
Principle Two: Momentum Precedes Price
Principle Three: Trends End in a Climax
Principle Four: The Market Alternates between Range Expansion and Range Contraction
Bottom Line : Select any one looking RR in prospective making it a mechanical way
As in words of Linda Raschke’s only four principles are there for price
Principle One: A Trend Has a Higher Probability of Continuation than Reversal
Principle Two: Momentum Precedes Price
Principle Three: Trends End in a Climax
Principle Four: The Market Alternates between Range Expansion and Range Contraction
Bottom Line : Select any one looking RR in prospective making it a mechanical way
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Draw down phase in traders life (Trend trader):
Trading is always easy ,but holding nerve when systems enters ugly draw down phase is the key factor,i have met lot of successful traders,there important trait in there trading is psychology to hold there nerve in DD phase, for me it took 5 long years to adopt that in positional trading,when ever there is some SL hit on account of gap i used to think intra is the best and remained in that for quite long period..Once intra+positional are added ,things changed dramatically.
Time factor :Many think long time frames does prevent noise ,but every time frame has its own whipsaw periods and time to recovery
Handling DD phase: (by the way this is for rule based system),first of all result from back test should show you the extent of damage it will case to trading capital ,i questioned my self can you handle this ,if answer is no ,we have to rearrange the system ,but any system will remain in that phase ,so handling that is only option.How you do that MM is only option..
Main mistake trader does is stop trading when this phase starts without giving importance to his back test results,thinking that lets market stabilize ,i will start again, there is no precise way or means which will tell you market stabilization factor
Trading all three (intra+positional+swing) helped me to offset one system loss with another at most and turned the table,but there are months when all the three turned into loss
Psy drill helped me to adopt all (intra+swing) handling in better way
Bottom line: We can cry when we lose ,but has to follow the system at any cost
Trading is always easy ,but holding nerve when systems enters ugly draw down phase is the key factor,i have met lot of successful traders,there important trait in there trading is psychology to hold there nerve in DD phase, for me it took 5 long years to adopt that in positional trading,when ever there is some SL hit on account of gap i used to think intra is the best and remained in that for quite long period..Once intra+positional are added ,things changed dramatically.
Time factor :Many think long time frames does prevent noise ,but every time frame has its own whipsaw periods and time to recovery
Handling DD phase: (by the way this is for rule based system),first of all result from back test should show you the extent of damage it will case to trading capital ,i questioned my self can you handle this ,if answer is no ,we have to rearrange the system ,but any system will remain in that phase ,so handling that is only option.How you do that MM is only option..
Main mistake trader does is stop trading when this phase starts without giving importance to his back test results,thinking that lets market stabilize ,i will start again, there is no precise way or means which will tell you market stabilization factor
Trading all three (intra+positional+swing) helped me to offset one system loss with another at most and turned the table,but there are months when all the three turned into loss
Psy drill helped me to adopt all (intra+swing) handling in better way
Bottom line: We can cry when we lose ,but has to follow the system at any cost
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