Trading Journey Part 3

Stage #7

After you have done all the research you have bought into your first course that is complex. You have taken off most of the standard indicators but have left a few because you have found that some standard indicators do have value at certain points on the charts. The difference is you know that a MACD can not be used every time it crosses up and down but it will have value at some points. You still do not know exactly when they have value at each point but overall you still have a MACD or something close to the MACD.

When you get the course it is a new way to approach the markets. Now you are starting to see that there is a reason for turning points on the charts now it is just seeing them in real time to gain confidence in them.

What most people do is they try to manipulate the new course into what they already have learned. This is a bad thing but most everyone does this at the start of the new course. What I mean by this is you might have 4-5 signals that you were using up to the point of buying the new course and instead of removing those from your charts and your thoughts you stay with them and try to incorporate all you know into one style. The reason this is bad is because the person that made the course you just bought does not know those signals and those signals have nothing to do with the new methods.

In doing this you are not really learning anything you are actually adding in more confusion as you did in earlier stages. Some do not overcome this and take a new method and destroy it with prior bad habits and trading signals. The end result for some is a negative outcome of the new methods but in reality it is not the new method it is how you are approaching it and destroying it before you can even learn to accept it.

It is hard to let go off methods you have learned but you have to keep it real and know the reason you are learning the new method is because your old methods were not working so why add those into the mix to complicate the new method?

Once you fully understand the new method then and only then should you look back and what you were doing prior to try to add something new into the method NOT right from the start because you need to take that time to really learn the new method.

This is one of the biggest mistakes people make with trading is adding in old things while at the same time trying to learn something new. This is why there are different results for different people who buy the same course. Everyone has had a different trading journey up to the point of buying something new but if you can leave out all prior education at least for one month to be able to accept the new methods you will be much better off.

We all have egos but egos with trading are not a good mix. It is best to stay focused to the chart and let go of ego so you can strengthen your thoughts and methods.

I know this is hard especially when you have spent money in the past on methods and education that did not work out in a positive way. It is important to know that everyone just like traders are all different people who teach trading are all different as well. Remember is stage 1 and 2 when you were buying the magic system for $79.00? Do you think that they guy selling that course is the same as a guy who is selling a 3k course with private mentoring and nightly videos? It is completely different but some people think it is all the same and everyone falls into the same category. The result of this is you might miss out on something that could change your life because of one or two bad experiences within your trading journey.

Conclusion:

If you are going to spend the money on a new education course do yourself a favor and really give it a shot. Do not look at it and see how it fits into your current style and then dismiss it when it doesn’t line up with what you are currently doing. There is a reason why your current style is failing and that is why you bought the new course so the only person it hurts is you to not give it 110% and put your older methods aside at least for the time to learn the new methods.

Stage #8

If you can let go of ego and older methods that are not working you will be on your way to a new level of trading. Later on it is good to go back and take a look at what you were doing to see if there is any value to your older methods. The whole point of learning anything is to get rid of the bad so there is room for the good. Over time the goal is to have more good than bad but this takes a lot of hard work, money and time. A very high percentage of people give up along the way and blame the failures on others. We hope you can make it past this stage.

Now it has been one month and you have dedicated yourself to the process. You have asked questions and watched the education multiple times. It is important to join the conversation so you are getting answers to questions that you are not even asking. This is why we do nightly videos and member webinars so we have an open forum for people to get involved. The more involved you are the better result you will have.

You will still have questions that need to be answered because everyone learns differently. It is also important that you do not put pressure on yourself to learn everything in one weekend that is not realistic for something as complex as what we do. To master our methods it will take you months to build a solid foundation, why? Since we use a 60 minute chart for a bigger day trading trend you will need to see live examples for yourself and see the patterns complete or fail for yourself in real-time.

The truth is learning to trade takes more time than most people want to commit because everyone wants to answer without knowing how to solve the equation. With trading your job is to solve the equation multiple times per day. If you are stuck on just trying to get the result or answer you will always have low confidence.

Humans in general want everything now and they do not want to wait for anything. I am the same way but with trading it does not work that way. Most people will still be learning years from now so instead of flip flopping from courses that promise instant success you are better off going with a course built for long term success knowing the learning curve does take time. You are going to put in the time regardless so it is really where your time is best spent, isn’t it?

Conclusion:

If you have the right mindset when you are going through the course you will achieve much more than someone that is looking for instant success. It took my 15 years to know what I know with trading so it is impossible to think that after only two days you would get everything we teach. The people that join the conversations and attend the webinars live or recorded and ask questions do the best. If you stick with it and see live examples over a course of two months you will be in the top % of traders and start to realize that most of what you have learned up to this point was someone selling you the hype of the markets not teaching you how to trade.

Big Picture Update

Feb 25th , 2011

From the August 27th 2010 low we have been bullish this market even though most have been saying it is overbought for months and months. We issue a nightly video each night and these videos are archived for all of our members. This means that if you join today you can go back and watch day by day how we have traded each leg.

It is one thing for someone to say something that has happened in the past but we save what we say and why we said it. Anyone can make up anything in this business....

So what is our outlook now?

The high that was made this week in the NQ is different than the previous highs since the August low. We have a reason for a top at the 2392.50 high. We have to wait for this high to be confirmed next week but there are odds that we start a correction from this point, especially if we get confirmation next week.

Every high on every time frame always feels like the absolute top but in reality a very small percentage of them are actually tops and this is why people go short too early. Going short too early is a losing trade on two levels.

Level 1: You get stopped as the market goes higher resulting in a loss.

Level 2: You are not making money in the trend direction where the real money is made.

Level 2 is actually the most damaging even though most people look at losses as the most negative outcome of the trade. We usually look at things differently than most people.

There is a inside extension of .618 at the 2392.50 high and this level is a level that picks up on potential turning points in the markets.

Don't believe in patterns? Don't believe in Fib's?

If you believe that pattern do occur in the markets by default you should believe in Fib's. Why? Because the fibs are what gives you the levels of the turning points and all the turning points is what gives you individual waves and all those individual waves is what equals the pattern.

If you think you can just wait for a pattern to complete and then try to trade that pattern you are wrong. Each leg of the pattern gives you odds if the whole pattern will complete to the next pattern or fail. Knowing how to do all of this is what gives you odds. All patterns do not complete the same every time you see the same pattern and why is that? Maybe it is because half way through the pattern it is telling you something that you are not seeing..

There are always two patterns that are "in play" at a specific time on the chart. It is your job to know which one has higher odds of completing. Most of the time there is one bullish and one bearish pattern that is in play. Sometimes there can be 4-5 patterns all inside of one bigger pattern. This is why trading can be confusing but to have success you need to know what questions to ask yourself at different points in the pattern and know the answer to them or what to look for so you know when the pattern is still true or is it becoming more false?

I am not here to try to convince you that patterns are 100% why the market moves like it does. Some people do not believe in patterns and no matter what you show them they still will not believe. It is these people that might think a MACD has value every time it crosses and even though deep down they know it does not have value every time it crosses. Those strategies are easy to learn but what is the point if they do not work?

Pattern, Fibs, Multiple Time Frame Trading and everything else we do takes time to learn. There are too many companies promising instant profits with the markets with limited risk but you are smart enough to know you should skip those offers. What is the good of limited risk if you always get stopped?

Why do some things work and sometimes they do not?

The bottom line is some things do have value at certain points in the pattern but all indicators are doing what? They are there to confirm the pattern, period!

So without knowing how to get the right patterns you could say that most all indicators will be wrong the majority of the time because you do not understand what they should even be confirming. It is basically like starting a book at chapter 7 , the story will be very confusing and not make any sense.

Where we are now in the market we could correct for many months if we confirm this top. Overall we still have much higher targets so the correction is a buying opportunity long term. We did a member video in Nov of last year saying that we are bullish and NQ targets are up near the 2900 level. This was when the NQ were at the 1700 level.

We still think those targets are in play but we would need a pullback in order to make it to those targets.

NFLX is one to watch for puts.

Special Bonus: For anyone who signs up this weekend you will receive the nightly video package for free for life. Also you will receive one month free in our live room and one month free on our Option Pick service.

** If you are having a hard time trading the futures you should be trading options for the bigger moves. You can make 100% in a matter of two days on a 1 point move with IWM or the QLD

Options and More.....

If you want to join us for one month to trade options and come in our room please contact us for the paperwork.

This is a chart of something we are working on that we will show in the room. It is built to just reverse in the market. When it is white go long and when pink go short.

Happy Trading.

www.eMiniSchool.com

PS> This system is not part of eMiniSchool.

Current holdings:

IYR 57 Feb Calls closed at 1.67 up around 80% from entry.

LVS Feb 47 calls closed at $3.50 up 75% from entry

SOL Feb 10 calls closed at $1.10 up 10% from entry

ICE Feb 125 calls closed at $1.50 up 25% from entry