Thar's the Picture

These days I spend some of my weekend reading a few blogs, as do many of you. Occasionally I chime in and add my two cents worth if I think I can add some insight. Sadly, less occasionally, I come across something quite worthwhile. I'd like to share one of these worthwhile posts with you today.

I was up at 4am on Sunday, jet lagged after coming back from Oz, catching up with Dr Brett Steenbarger's blog and read this. He talks about successful traders looking at "themes" - the thing I call the picture that I look for at the end of a bar. His "themes" also encompass my idea of envisioning the possibilities in the market.

Both these ideas are the opposite of how most unsuccessful traders operate, focusing on what indicators are doing at any particular moment, rather than focusing on what the market - price - is doing and what it is telling them in the context that exists at that time.

I think my process makes the trader part of the market rather than an external observer. It seems that it is this integration that provides the feel, insight or recognition that makes the difference.