I’m doing this in response to my shitty attitude as of late. I’m spewing a lot of negativity, and I want to put out some good vibes… because the universe is currently pissed of at me. I usually lose my cool when I see members of the forum running around in circles. It frustrates the hell out of me, and then I realize that it’s a long journey and that not everyone is in the same spot.
I’m sharing insights that have taken me years to identify, and cost a small fortune worth of blown accounts. It is a gift. These are not the types of things blown DEMO accounts can provide you with. There’s nothing like “REAL” pain to get a point across. I wrote a little sketch to help illustrate my bullet points; otherwise it’s rather difficult to verbalize. I really hope this connects with the people who need it most, and creates some of those, ever so rare, aha moments.
Let’s begin.
- There are a lot of “systems” out there – most will be of little benefit to you. The best you could possibly do for yourself is to tune into specific elements as you go through various system trials. As an example; perhaps you’re checking out yet another MA crossover system. You’ve seen it all before, but in this particular case you take a fancy to the way position sizing is handled. As soon as you hear your inner voice say’ “hmm, that’s kind of interesting”; you must embrace that element immediately and make it your own. Eventually, all these little bits will come together to create your edge… the thing that will make you profitable.
- Technical indicators are alright to use, as long as you come to terms with the fact that your mind operates in real-time… while the indicators operate in past-time. Think of it this way, if you had a better relationship (or communication) with your mind it would be the best indicator you could ever hope for… more on this later.
The bottom line is this; if you can truly comprehend the above statement and you still want to use indicators, then it becomes somewhat “illogical”.
- “The market does not exist”. Ok, let’s say it together one more time “The market does not exist”. Make this a mantra when you’re trading. The only truth is you and the other you. The other you is your business partner (no, not your broker) - “your mind”. This is critical to grasp, without a deep understanding of this... you don’t stand a chance in hell. I mentioned in the previous bullet point that the mind is more effective than indicators, but guess what? None of that is even relevant. And here’s why? “The market does not exist”. There’s only you and your other self. Don’t jump to conclusions about my mental health just yet.
You and Your Mind (Scene 1)
Setting:
After many years of feuding (probably since your toddler years), you and your mind finally start up a meaningful conversation. Hopefully it goes a little something like this:
- You – Hey dude, we’ve been at this trading thing for a while and I’m pretty tired of struggling.
- Mind – Yeah man, me too. But that’s only because you don’t listen to me.
- You – It’s not that I don’t listen to you; it’s more a case of not trusting your judgment calls.
- Mind - Oh really, and those Forex Factory systems are more accurate than my judgment? Let me ask you something? What’s the difference between that 10 and 20 MA cross system from last week, and that 5 and 13 cross system from a month ago?
- You – Well, the guy who started the thread for the 10 and 20 cross had a backtest that showed 40% monthly returns for the last 6 months on the GBP/JPY pair. That’s 10% better than that 5 and 13 cross method.
- Mind – Are you a complete idiot? Don’t you see the redundancy in all that bullshit? How about those MA cross systems with the so called RSI and Stochastic filters. All that shit travels in tandem you moron. The only thing actually confirming movement is price!!!
- You - Well that’s what all the pros say on the forum… but, I don’t know man.
- Mind – Right, you don’t know and at the same time you don’t trust me either. You’re screwed buddy, and I’m screwed by default. Look, we need to get our shit together, ok?
- You – Alright, what do you have in mind... Pun intended.
- Mind – Here’s what I’ve observed so far about this market thing you’re so obsessed with. There is a rhythm to it most the time, and I think we stand a chance to capitalize on it. All those little tricks and techniques we like so much will help us score some gains. I think that you and I first need to agree on some ground rules that we both have to stick to.
- You – You mean write them down like all the trading books say.
- Mind – You know, I don’t really care if we write them down or not. Look, let’s keep this as simple as possible, shall we? I’ve got enough on my plate as it is. When was the last you had to remember to blink or breathe? You dig?
- You- Yeah, I got it. So basically we have an entry guideline, an exit guideline, some rough idea of % risk per trade… is that it?
- Mind – Yep. And we do all of this by looking at price, recognizing the rhythm, and trading into the flow of the waves.
- You – What if we fail?
- Mind – Uh? Bro, we’ve been at this for a while now… we’ve BEEN failing. Look, let’s just make this partnership thing a reality. It’s the only thing that actually is real. Price movement in general is a bunch of shit. We can assume that we see a rhythmic pattern and act on it. If we’re wrong, so what? That’s about as simple as it gets. The most important thing is our relationship. We have to trust each other, and be honest with ourselves and our collective rules and guidelines. If we can’t do those things, we don’t stand a chance in hell.
THE END
P.S.
I will be happy to clarify if need be. But, I think this is best served with a healthy dose of personal interpretation.
I’m sharing insights that have taken me years to identify, and cost a small fortune worth of blown accounts. It is a gift. These are not the types of things blown DEMO accounts can provide you with. There’s nothing like “REAL” pain to get a point across. I wrote a little sketch to help illustrate my bullet points; otherwise it’s rather difficult to verbalize. I really hope this connects with the people who need it most, and creates some of those, ever so rare, aha moments.
Let’s begin.
- There are a lot of “systems” out there – most will be of little benefit to you. The best you could possibly do for yourself is to tune into specific elements as you go through various system trials. As an example; perhaps you’re checking out yet another MA crossover system. You’ve seen it all before, but in this particular case you take a fancy to the way position sizing is handled. As soon as you hear your inner voice say’ “hmm, that’s kind of interesting”; you must embrace that element immediately and make it your own. Eventually, all these little bits will come together to create your edge… the thing that will make you profitable.
- Technical indicators are alright to use, as long as you come to terms with the fact that your mind operates in real-time… while the indicators operate in past-time. Think of it this way, if you had a better relationship (or communication) with your mind it would be the best indicator you could ever hope for… more on this later.
The bottom line is this; if you can truly comprehend the above statement and you still want to use indicators, then it becomes somewhat “illogical”.
- “The market does not exist”. Ok, let’s say it together one more time “The market does not exist”. Make this a mantra when you’re trading. The only truth is you and the other you. The other you is your business partner (no, not your broker) - “your mind”. This is critical to grasp, without a deep understanding of this... you don’t stand a chance in hell. I mentioned in the previous bullet point that the mind is more effective than indicators, but guess what? None of that is even relevant. And here’s why? “The market does not exist”. There’s only you and your other self. Don’t jump to conclusions about my mental health just yet.
You and Your Mind (Scene 1)
Setting:
After many years of feuding (probably since your toddler years), you and your mind finally start up a meaningful conversation. Hopefully it goes a little something like this:
- You – Hey dude, we’ve been at this trading thing for a while and I’m pretty tired of struggling.
- Mind – Yeah man, me too. But that’s only because you don’t listen to me.
- You – It’s not that I don’t listen to you; it’s more a case of not trusting your judgment calls.
- Mind - Oh really, and those Forex Factory systems are more accurate than my judgment? Let me ask you something? What’s the difference between that 10 and 20 MA cross system from last week, and that 5 and 13 cross system from a month ago?
- You – Well, the guy who started the thread for the 10 and 20 cross had a backtest that showed 40% monthly returns for the last 6 months on the GBP/JPY pair. That’s 10% better than that 5 and 13 cross method.
- Mind – Are you a complete idiot? Don’t you see the redundancy in all that bullshit? How about those MA cross systems with the so called RSI and Stochastic filters. All that shit travels in tandem you moron. The only thing actually confirming movement is price!!!
- You - Well that’s what all the pros say on the forum… but, I don’t know man.
- Mind – Right, you don’t know and at the same time you don’t trust me either. You’re screwed buddy, and I’m screwed by default. Look, we need to get our shit together, ok?
- You – Alright, what do you have in mind... Pun intended.
- Mind – Here’s what I’ve observed so far about this market thing you’re so obsessed with. There is a rhythm to it most the time, and I think we stand a chance to capitalize on it. All those little tricks and techniques we like so much will help us score some gains. I think that you and I first need to agree on some ground rules that we both have to stick to.
- You – You mean write them down like all the trading books say.
- Mind – You know, I don’t really care if we write them down or not. Look, let’s keep this as simple as possible, shall we? I’ve got enough on my plate as it is. When was the last you had to remember to blink or breathe? You dig?
- You- Yeah, I got it. So basically we have an entry guideline, an exit guideline, some rough idea of % risk per trade… is that it?
- Mind – Yep. And we do all of this by looking at price, recognizing the rhythm, and trading into the flow of the waves.
- You – What if we fail?
- Mind – Uh? Bro, we’ve been at this for a while now… we’ve BEEN failing. Look, let’s just make this partnership thing a reality. It’s the only thing that actually is real. Price movement in general is a bunch of shit. We can assume that we see a rhythmic pattern and act on it. If we’re wrong, so what? That’s about as simple as it gets. The most important thing is our relationship. We have to trust each other, and be honest with ourselves and our collective rules and guidelines. If we can’t do those things, we don’t stand a chance in hell.
THE END
P.S.
I will be happy to clarify if need be. But, I think this is best served with a healthy dose of personal interpretation.
