Expand the gap between you & the trading masses. Here's how real trade write-up

 

Here's how you
expand the gap between you and the masses
because winning at trading takes beating them

 

Do
Find a trade masses can't see

Don't
Trade well-known scenarios/plays/ideas

Context 6A

  • upside moves occurred each previous day this week

  • reversion to downside during HKE lunch a thing

  • "hole" in value to the upside existed

  • *prior day demonstrated greater internal strength over other days

*from my notes
"less flashing on the DOM, didn't need to grab profits off the table quickly before they vanished, sloppy long entries not penalised"

Experience says:

/// masses unaware of last two points ///

= unfair advantage


Idea?

If internal strength to continue, rip opportunity to upside?
And if going to rip to the upside, time to do it is during a period when

  • liquidity is down (HKE lunch)

  • traders are expecting reversion


Problem?

  • How will the idea's integrity be maintained without giving away the game?

  • What will this look like in the hours prior?

Solution

from my notes
"Likely have to outlast the competition as starting point.
Hole in value above June 2020 MVWAP close after already strong move up
Shorts need time to gain confidence to initiate. Longs need be irritated, causing them to cover and/or reverse"

Here's what that looks like on a chart:

 

How did it play out?
But first,
a common trait that works against traders.
How often have you heard "I knew it was going to do that"?
Cool, but how do you monetise that?
Exactly!

Point being Idea is one part of the trade
You need a process to monetise it

This is where things get confusing...
You see trade executions on a chart
You conclude the trader used technical analysis to make all the trades

No!
Reading the play & executing trades correctly shows up on charts looking like technical analysis predicted where to buy & sell

If charts are the cart
that comes after the horse:

the horse is

  1. idea

  2. seeing idea play out

  3. monetising the idea because:

  • you know the game

  • you can read the actions of players and

  • have execution skills to match

After 2 eariler failed attempts
here's how monetising it
looks like on a chart

 
 
Adam Fiske