I was in Dire Straits

It was Money for Nothin' (no chicks) today. The 45CCI stayed under zero -+showing the momentum was down, the volume delta was pretty good at hitting the bid and there were plenty of pullbacks to re-enter on if your style is like mine and you love paying the clearing firms. At 1180.00 it looked like it would bounce but it didn't. Looks like the long liquidation is continuing. It was hard to be wrong today. My vision for the day was lower and even though it started slowly, I could not see any real buying at all so I didn't have to be too smart. Kiki loves these trend days as she can let her last piece run until the close. It's a way to go yet and we'll see if there is any reversal. I expect some profit taking but hopefully it will be just another opportunity if we read it correctly.

I have just started checking the redundancy of my setup here in London so that there are no glitches for the training. We have plenty of computers and they all have charting software and will have the Go to Webinar software too. I've ordered new routers/modems for each of the two internet connections we have, both cable and ADSL2. We are currently testing how big the files will be for an all day recording of the the webinar. It looks like about 1Gb per 30 minutes. We are getting in an additional terrabite of storage to cope. I have also upgraded the ADSL2 upload speed to double so we can get the videos online as quickly as possible. I won't know how long the uploads will actually take until we try it in real time at about 9.30pm London time. There is lots to organise for an effort like this.

I have started work on documentation. Although the fact that this will be live and that the setups will reveal themselves in real time, I thought some written material may be a useful addition for those that learn that way. What the attendees will be learning is how to read the market by processing, in real time, the information that is coming in. The first stage in the process is to have the help of signals and arrows that appear on the chart to remind you what is happening. This will help not to miss something. I will be saying what I am thinking as the market progresses and pointing to what information is useful in which context. It becomes very inuitive. It's changing the mindset from looking at indicators to looking at what market information the indicators, including the bars, are telling you.

There is an introduction in the documentation I am writing where I talk about the first Star Wars film where Obi Wun Kanobi is teaching Luke Skywalker to fight. He blindfolds Luke and tells hime he has to feel the force. This is the same as successful traders who process the information they see, know its a trade, pull the trigger and then manage the trade. Just as we did in the pits.

More questions rolling in as you can see below. My answers are in red.

       Comments:

Tartan said...

Tom: Over the past month, I have noticed that many of your trades are labelled with the type of setup that was used. I have noticed the following labels: - Delta (meaning Delta Divergence) - TR (meaning Trend or 30 EMA cross??) - SL (not sure what it means) - S&A (not sure what it means. I notice these are High Frequency Trades) - No label (simply Buy or Sell with no label when other trades on the same chart are labelled). Would you be able to tell us what these labels stand for? Even if you cannot provide us with insight into each of the specific setups, it would help to know their names as it may give me a clue when I try to "reverse engineer" your thinking. Thanks!

These are reminders to me of parts of setups and things in my trading plan. These are the things I suggested in previous posts traders create for themselves.

Anonymous said...

Hi EL, I've enjoyed your blog for several months now and I'm signed up for the training. I've gotten much better at selecting entry points, but my struggle right now is managing the trade after I'm in it. Sometimes I have a hard time staying in a trade because I'm not sure what's normal heat and what's a real change in market direction. I'm hoping you cover this in the training. Thanks again for your excellent blog.  

It certainly will be a huge part of the training as its critical to CP. I'll show different ways to do this depending on your style - lot's of shorter trades with re-entries or let it run.  

TrueBalance said...

"the setups are important but the magic is learning how to evaluate them against the context" How true. How do you learn someone to "think right"? I can't wait to see how you plan to convey that knowledge. You've obviously succeeded before, at least with Kiki. Common trading lore has it that it can only take place through thousands of hours of screen time - and that is if you are lucky. By the way, it would be nice with a Kiki update. How's she been doing lately?

Kiki is a star. She is having an issue with managing the trades due to the changes in volatility. We've almost got it licked. I'll show you how in the training.

Anonymous said...

Mr. ELocal ..Will your videos of the entire training be available for sale at a later date without mentoring?

Mr Anonymous, I wasn't planning on doing that, but I must be upfront and say I have made one exception to this for a long time reader of the blog who for personal reasons can't attend live.