Extracted Thread (per thread starter's request)

Here are some of my journal entries over the years (not in any particular order). Each entry are lessons I had to learn and develop personally to become a Professional trader. These are the disciplines I personally uphold. I wish they may be of use and may help you with your own journey.

DO NOT EMAIL ME because I am very busy and I won’t reply back. Forget asking for my system/strategy, I will only post what I want to share. If you want to thank me, do it in spirit.

(added on: May 22, 2010)
IMPORTANT NOTE:

1. I will never trade anyone's money or manage accounts
2. I will never have other accounts from other forums
3. I will never sell trading signals/service to anyone
4. I will never sell my trading system to anyone
5. I will never write or publish a book
6. I will never open a chat-room
   

Anyone who proclaims to be CrucialPoint or the least to state he is CrucialPoint, is NOT ME.


DO NOT GET SCAMMED.

Possess a Solid Trading Philosophy

My income is primarily determined by my philosophy and not by the economy. As my perception dictates my behaviors, so thus my philosophy will dictate my performances and results. It is crucial to have, to know and understand my own trading philosophy. It is very important to know myself.

Understand that if I am not succeeding in trading, then I need to change my philosophy. I cannot continue to do the same thing over and over again expecting to get a different result. If I want to change my results (always losing), my philosophy has to change.



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Explanation:
The fundamental of all human psychology: "Perception dictates Behavior". If you perceive your environment to be threatening, you will act accordingly. However you perceive an object, you will act according to your perception.

Here is an example:
Imagine that you are very hungry. Now, picture a roast chicken in front of you. Would you eat it? --- yes or no --- it'll depend of your perception of the roast chicken.
You see, more likely you would eat the chicken because your perception is non-threatening. What if I told you that the roast chicken is poisonous,... would you still eat it? (of course not!)
I've changed your perception and you've changed your behavior instantly. Yet, there is no objective proof that the roast chicken is poisonous. You are simply acting from your perception that the roast is poisonous.

Your behavior of trading is a reflection of the underlying perception you have about FOREX. Whether you are aware of these perceptions or not. The negative result speaks for themselves. Your perception is the philosophy running in the back of your mind, quietly and unnoticed.

Your perception will dictate your behavior. Thus, your philosophy will dictate your performances and results. If you want to change your results, you have to change your philosophy. You need to possess a solid trading philosophy.

Trade Only With The Trend

This is my number 1 and golden rule. The most important rule of my strategy and the backbone of my trading success: Trade only with the trend. It is unacceptable to break this no.1 rule. If I can't stick to this one important rule, then I am no different to the amateur/mediocre trader.

This is the fundamental rule of all; Trade only with the trend. If I can't execute one simple rule, then I am not a professional. It is that simple; Trade only with the trend, nothing more. People lose money because they don't follow this rule, period.



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Explanation:
Do not overlook the most important lesson here in trading. And here is the lesson in bold:

"How can you become a professional trader if you cannot execute one basic/simple rule consistently?"

Please, do yourself a favor... first learn to walk before you try to run.

Success is built upon small steps of achievement. Learn to achieve one task first, then another, then another, then another... and sooner you will meet your success.

You cannot create a sentences or write words if you don't know your alphabet. It will be very difficult and most likely be unsuccessful without knowing your alphabet.

The alphabets are the basics... Trading with the trend are the basics... The difference between a Professional and an Amateur is that a Professional have mastered the basics. How far do you think you will go without mastering the basics?

Forex is a very Dangerous Place

I've killed my account again. I've been reckless with my trades. This is not a simple environment , in fact... it is a very dangerous environment. I guess I've been reckless because I have no concept of the dangers.

I see no threat, yet I get demolished again and again. My results speak for themselves, an ever decreasing account balance. Tonight I'm going to bed defeated again.

I need to realize that this is a very dangerous place. Make note: Safety is my first priority if I am to succeed in this game.



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Explanation:
People lose money because they don't realize nor have a concept of how dangerous Forex is. The mentality is whenever they blow their account, they can simply re-fund, another day and a fresh new start.

This mentality is not acceptable if you want to become a Professional trader. If you keep this philosophy, you will never make any money in Forex and you will surely lose all the time.

Without any concept of the dangers, you are like a 5 year old child trying to cross a four-lane highway. Would you cross a road without every stopping first and then looking left and right to check for oncoming traffic? Would you cross a road with a blindfold?... So why would you trade blindly?

Knowing when to trade and when not to trade is very crucial to your survival. You can't trade whenever you feel like it. The market must have the right conditions before you can trade.

Trading without knowing the market condition is like setting out to sea during a violent storm. It is like flying a plane without doing your pre-flight checklist. Forex is a dangerous environment without the concept, the knowledge and experience of the dangers that lies ahead.

Realize that Forex is a very dangerous place and you cannot survive this place if you are unaware and clueless of the dangers. As with life, safety is a very important issue. Safety is your first priority.

The 10,000 Hour Rule

I need to increase my hours of research, study and training. So far, I am spending only 2 hours a day. I need to make room in my schedule to increase my hours.

I want to be a Professional and I need to be targeting 10,000 hours of experience... So far the numbers aren't looking good.



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Explanation:
It takes a lot of time to become an expert in any field. If you look at any endeavor; concert pianist, chess grandmasters, professional athletes, doctors, lawyers, craftsman - skills are nurtured, honed and developed at such a young age to accumulate the time necessary.

The rule: 10,000 Hours to become a Professional

8hrs x 5days x 52weeks = 2080 hours per year
10,000hrs / 2080hrs = 4.8 years

(It would take 4.8 years to become a Professional... if you spend 8hrs a day)

Personal Development is an Important Part in Trading

"Men are anxious to improve their circumstances, but are unwilling to improve themselves; they therefore remain bound. The man who does not shrink from self-crucifixion can never fail to accomplish the object upon which his heart is set. This is true of earthly as of heavenly things. Even the man whose object is to acquire wealth must be prepared to make great personal sacrifices before he can accomplish his object; and how much more so he who would realize a strong and well-poised life."

~ James Allen



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Explanation:
Trading requires 2 things:

 

1. Psychology/discipline (mental training, emotional quotient)
2. A proven system/method or strategy (Entries, exits, money management)

A proven system cannot work without the proper discipline to execute it. And discipline alone is useless if not applied to anything - a proven system.

Let me illustrate the importance of personal development:
Imagine that a proven system is like a car. To use the car (proven system) to its full potential requires a driver. Without a driver, the car is useless. Also, you can't just put anyone behind a wheel and expect them to drive. A person must first learn how to drive (personal development).

This is the reason why personal development is more of a priority. The driver is the key element, but first you must develop a person into a driver. You must first develop a person into a trader. You cannot just place any person behind a proven system... because they won't be able to drive the proven system.

It is not all about Entries, Exits, Money Managements, Systems/Methods and Strategies. Personal development and self improvement is an important part in trading. It is the major aspect in trading. 70%-90% of your success in this field will rely on your development.

A Motivational Story

Once a upon a time...

Man was very inquisitive and very interested about predicting the weather. It was a very important issue in getting it right (mostly for agricultural reasons). Man used omens and divination to predict weather. Later on they found a more accurate way of predicting the season with the formations of the stars.

Fast forward to the year 2010 and man have come very far and developed new ways and technologies in predicting the weather. Even with our current technology, with the super computers we have, predicting the weather still isn't 100% accurate. Hence, the saying; "Since when was the weatherman correct about the weather!"

Rewind a little, with the introduction of the computer. Man celebrated on how this technology would help in predicting the weather. The computer can calculate tedious data in hours instead of days. Man saw a great potential and went straight to work, developing the computer to help him in predicting the weather.

As with any endeavor, it was faced with setbacks and failures. You see, Man found out that the computer wasn't as consistent as he hoped it would be. The results were slightly better, but nowhere close enough to acclaim that there was a consistent measurable result... or reliability.

So, they invited the great minds, experts in the field and anyone else who wanted stand up to the challenge. They invited people to write a code for the computer to predict the weather (of course the winner would receive a prize).

There were thousands of code that were written and developed for the computer, but it did not produced the significant results. There were codes that took into account hundreds of variables, some codes took advantage of major variables, the codes ranges from the simple code to the very complex code that seems out of this world. But the results... the results were below the median, meaning that the odds were the same as tossing a coin (heads or tails) in predicting the weather.

But there was one code which was the winner... It produced a more consistent result and it out-classed all the other codes in performance. The result of the code produced way above the median, giving good reliability, but... it wasn't 100% correct. It was more of like 60%-70% correct, while the rest of the codes were producing only 10%-35%.

To the everyone's surprise it wasn't a complex code... It was a simple code, nothing more... Actually, the code contained only 1 line of coding:

Code:
"Tomorrow's weather is similar from Today's weather."

Success is a Mindset: Quotes to Reflect Upon

"It is one of the strange ironies of this strange life that those who work the hardest, who subject themselves to the strictest discipline, who give up certain pleasurable things in order to achieve a goal, are the happiest men."
~Brutus Hamilton


"Nothing of importance is ever achieved without discipline. I feel myself sometimes not wholly in sympathy with modern educational theorists, because I think that they underestimate the part that discipline plays. But the discipline you have in your life should be one determined by your own desires and your own needs, not put upon you bu society or authority."
~Bertrand Russell


"Men are anxious to improve their circumstances, but are unwilling to improve themselves; they therefore remain bound. The man who does not shrink from self-crucifixion can never fail to accomplish the object upon which his heart is set. This is true of earthly as of heavenly things. Even the man whose object is to acquire wealth must be prepared to make great personal sacrifices before he can accomplish his object; and how much more so he who would realize a strong and well-poised life."
~James Allen


"Hands untrained in the use of tools destroy what they want to build. It takes skills to use tools to achieve the result desired, whether it's tearing down an old house or building a new one. Skepticism is a tool serving both purposes. But it must be used by a trained mind, a mind capable of disciplined thinking."
~J.B. Charles


"No horse gets anywhere until he is harnessed. No steam or gas drives anything until it is confined. No river is ever turned into light and power until it is tunneled. No life ever grows great until it is focused, dedicated and disciplined."
~Harry Emerson Fosdick


"What lies in our power to do, it lies in our power to not do."
~Aristotle



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Explanation:
Wealth, Success and Happiness is a Mindset. A Professional Trader possess a certain mindset. There needs to be a shift in thinking.

What you reflect upon will mold your mind. It will shift the mind to a different plateau. Reflecting is molding the mind into something you require. When you mold the mind... you mold the behavior. Don't mold the behavior... Mold the Mind.

The Gap between an Amateur and a Professional Trader

I need to identify the one degree that separates the Amateur and a Professional trader. What gives a Professional trader the edge?
.....
7 years of research and I have come to the conclusion that the difference lies not in a system, but in the discipline of a trader to follow a system.

Through my extensive research, I have no doubt (even bet my life) come to the conclusion that a simple system which consists of two Moving Averages (nothing more) is highly profitable to a Professional trader.



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Explanation:
"At 211 degrees, water is hot.
At 212 degrees... it boils.

And with boiling water, comes steam. And steam can power a locomotive. One extra degree makes all the difference. And, the one extra degree of effort in business and in life... separates the good from the great.

 

1. The average margin of victory for the last 25 years in all major tournaments combined was less than three strokes.
2. The margin of victory between an Olympic gold medal and no medal at all is extremely small.
3. At the Indy 500... the average margin for victory for the past 10 years has been 1.54 seconds.
4. The winning NBA championship can be as small as 1 point."

(excerpt from 212 degrees - the extra degree)

Believe it or not... the difference between an Amateur and a Professional trader is very small. It is the one extra degree of discipline that makes all the difference.

Randomness vs Predictability

I've read several books and opinions on the matter. It seems that people are divided into 2 groups; one believes that it is a purely random market and the other believes in certainty, a very predictable market.

Is the market predictable or is it governed by randomness? I need to sort this out for myself. I need to know what I am dealing with. This should help me take advantage of any flaws and any hidden consistencies within the market.

Knowing my own stance with this matter/issue will help me create a better and clearer trading plan.
.....
After years of research and analyzing all possible credible arguments, weighing all credible arguments and disapproving/approving all weighted arguments; I found that the market is a mixture of both. The market has a certain degree of predictability and also a certain degree of randomness.



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Explanation:
To believe that the market is purely predictable is naive. To believe that the market is purely random is also naive.

An influx of sell orders will move the market downwards. No doubt, that the move will drop the price. An influx of buy orders will move the market upwards. No doubt, that the move will increase the price. This is the undoubtedly predictable aspect of the market.

When will these influx of orders will occur? Or will they even occur at all, at a specific time?... Decisions made by every market movers/players are purely subjective. Well, that is the undoubtedly randomness aspect of the market.

An Amateur is too busy defending and convincing themselves that it is either one of the two: Predictable or Randomness.

There is a certain degree that the market is very predictable. There is also a certain degree that the market is random. A Professional trader understands this concept and adds it to his trading arsenal.

Market never Changes

I've read and heard countless of times that a system didn't work because that the market has changed.
.....
I'm so excited today. I feel on top of the world. I discovered something; Market never changes.



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Explanation:
I challenge anyone on this entire planet to prove this observation wrong:

"95% of the time, Price will close either above or below the opening price. Less than 5% of the time, Price will close at its opening price."

Open a chart as far back as from the beginning of time when man started to trade (or as much historical chart available to you). Although time is non-existing in the trading world, until plotted in a graph... The above objective observation holds true since the beginning of trading and the present, now.

Within this truth lies the pot of gold.

I don't want to go into details why this nature will never change. Feel free to go and entertain yourself with that dead-end pursuit.

This is the true nature of the Market, the physics of the Market. Market never changes... Never had and never will, period.

The Meaning of Hard Work and Passion

I need to re-schedule my activities. I need to cut down certain activities. I need to prioritize what is more important to me and what I want for myself. I need to reallocate my time/energy and focus it to my goal.

I realize trading requires a lot of hard work. Trading has become my goal and ambition to succeed in. I understand that I need to sacrifice some of my activities in order to dedicate more time to my trading.



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Explanation:
Most people don't really understand the meaning of "hard work" and "passion". Everyone has a different perception when it comes to hard work/passion. It is a very subjective issue with every individual. There is a level of importance of the quantifiable hard work/passion required in trading. And this quantifiable level is something you need to understand.

To quantify this meaning of hard work required is similar to (and close to) achieving a level degree as Professional athletes. If you ever played at a state league level (and higher), then you will understand that level of hard work required I'm talking about. Even at such a high degree of work doesn't guarantee a championship.

If you are not working as hard as these athletes, you are not exerting enough energy to achieve your goal. And you can never truly understand this level of hard work/passion until you've experienced it in your life. And if you don't understand this, more likely you will fail.

Sadly enough, most people have never experienced such hard work/passion. If you've never experienced such had work/passion, how can you implement hard work/passion to achieve your goal to become a Professional trader? Fortunate are those limited number of people who understand the true meaning of hard work and passion (even if they weren't involved in any professional level sport).

What the Mind can Conceive and Believe, it can Achieve

http://img.allposters.com/6/LRG/16/1644/GN4GD00Z.jpg


"What the mind can conceive and believe, it can achieve."
Napoleon Hill

In Search for the Perfect Indicator

Today, after 5 years of learning and studying indicators (approx 50 indicators), I feel I wasted my time, but I did found interesting discoveries which improved my learning curve and developing a trading system.

Firstly, there is not much of a difference between indicators. Whether it is an indicator or an oscillator. Whether it is measuring volume, momentum, averaging, etc... it still produce quite similar results. And, every indicator has its own flaw.

Secondly, with new indicators getting developed (from simple to the very complex), I need an indicator that would be available to me at all times. What would happen to my trading if I don't have any access to any indicators? I need to learn to trade without indicators. I need to understand the raw information by itself.



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Explanation:
Every indicator has its own flaw. The more indicator you use the more flaws you add to your system.

There is no magic indicator, no matter how fancy they look. The major flaw of indicators is not because it is lagging. The major flaw of indicators is that it can not calculate the randomness aspect of the market. Indicators can calculate the predictable aspect of the market, but not the randomness. That is the reason why it will never be perfect.

After years of comparing, learning and studying indicators; the results produced quite similar results. The only differences between indicators are very small margin of deviation... which lies between a given margin of tolerance. A moving average would produce the same result as your super duper magic indicator, give or take a small difference. (this does not mean to suggest that you don't use them)

2 Questions to Calculate your Success

1. Will you sacrifice certain things in order to achieve your dream?

2. Will you continue to pursue your dream even if you knew that there is a chance you won't achieve them in your lifetime?



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Explanation:
At one stage of my journey my answer's were 1.Yes 2.No. Why would I (or anyone) pursue something that doesn't guarantee anything in the end? Why would you dedicate your life and waste your time into a dead-end pursuit?

An aspect of success is doing something you love. True success is not materialistic in nature. Success is a by-product of the passion and the love you put into your creation. And pure passion and love in what you do knows no limit and boundaries (till death).

I've come to accept that if I was to succeed, I have to let go of my materialistic view in life. I've come to understand this deeper philosophy from the Peaceful Warrior (book & movie). Will I continue to pursue my dream even if I knew that there is a chance I won't achieve them within my lifetime? --- Yes.



This is the mindset of a true champion in any field of endeavor.
1. Will you sacrifice certain things in order to achieve your dream? - Yes
2. Will you continue to pursue your dream even if you knew you that there is a chance you won't achieve them in your lifetime? - Yes

If you answer 1.Yes and 2.No - you have like a 5% chance of achieving your dream.
If you answer 1.Yes and 2.Yes - you have a 50% chance of achieving your dream.

Curve-fitting the Moving Averages

So far, different people use different numbers for the Moving Averages. I found out that people will tend to curve-fit Moving Averages. There was actually no solid reason as to why such value was used.



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Explanation:
People either forget or don't understand how Moving Averages are calculated. If you understand it, then you won't be curve-fitting a moving average that looks beautiful to you.

The number used in a Moving Average is the number of candlestick bars that was calculated. Example: 60 (MA) is the representation of 60 candlesticks that was calculated.

Simple enough, but here's the problem... On an hourly chart, people would use 50, 60, 100 (MAs) and other values. On a 5 min chart, people would use 15, 50, 100 and other values. They use these numbers because they look nice on the graph they are looking at.

Here is the logic:
There are 24 hours in a day... so you should be averaging the 24 hours to get some consistency (using 24MA). You should be using 24MA (in an hourly chart), yet people would use 30 or 40 MA. Why would you want to be averaging 30hrs or 40hrs?

So here are the MA numbers on an hourly chart 24MA (1day), 48MA (2day), 72MA (3day)... it is a multiple of 24.
For a 15 min chart it is a multiple of 4 (because there are 4 15mins within an hour) = 4, 8 , 12, 16, 20, 24, 36, 40,.... 80, 120, 160, 200, 360, 400, etc.
For a 5 min chart it is a multiple of 12 (because there a 12 5mins within an hour) = 12, 24, 36, 48,.... 120, 240, 360, 480, etc.
For 1 min chart, it is a multiple of 60 or a number that can be divided by 60 evenly = 1, 2, 3, 4, 5, 6, 10, 15, 20, 30, 60. Multiple of 60 = 60, 120, 180, 240, 300, 360, 420, etc.

The rule is a number that can be divided by the hour evenly (or divisible by the number of candlestick within the hour evenly)
Why hourly?... because the world's clock is synchronized hourly.

The Core

Today, I saw a successful trader trade without a chart. He's been trading for over 20 years and been very successful. Well (lol), as if he'll tell me his secret!

I learned something new; trading can be done without charts. It is possible to be successful without any charts and indicators. How do I de-engineer their trading system?

I guess, if I figure this out, I would have found the core of trading (apart its psychological aspect of being a trader).



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Explanation:
So, why are indicators scattered all over the trading world? Professional traders had been very successful way before 1980. After the 80's only then we get the sprouting of countless magic indicators.

I thought at one point the secret was money management. After many research... it's not. It does play a role and must be added to your system. But the conclusion: No amount of money management will save you if you are trading in the wrong direction, again and again. No amount of money management will save you if you don't have a solid trading system/edge. It will only delay the inevitable; a blown account.

If you don't use any information, basically you are tossing a coin in the air. I've never seen anyone with a coin tossing system with solid MM became successful in this field. A coin tossing system with money management can be coded into a robot. If this was successful, then every bank (at least one bank) would use this system.

So, what is the only information available to these chartless Professional traders?

Once you discover this secret, you'll throw away most of the stuff you've learned about trading... convergence & divergence, channels, indicators, multiple time frames, support & resistance etc... Why? because you don't really need them. These things does help, but you can trade without them. It's like having a car with electric/power windows... you don't really need them, but it's nice to have them around.

The key information these chartless Professional traders use are the; Previous High and Low, with its Opening and Closing price (you can view this on a candlestick, but you don't even have to). Once you know the high and low with its open and close, you posses a tremendous amount of information all ready in able for you to trade successfully (of course, you must have the system to make use of such simple information alone).

The Meaning of Discipline

I've achieved several things in my life because I have the discipline. So far I am finding it a new challenge to be disciplined in trading. Is it a different form of discipline?

I need to critically analyze my situation. Why am I failing?
Make note: I need to study all aspect of being disciplined.
.....
I have only two objectives when I trade; Entry and Exit. Nothing else must occupy my mind. I can entertain myself with all the richest ideology when I am not trading.



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Explanation:
What is the meaning of discipline and what does it mean to be disciplined? Have you ever asked yourself this question? Can you answer that question? It is hard to perform something (discipline) if you don't know what it is or don't know the dynamics that makes it work.

I never liked most of the definition given to discipline because it doesn't explain how discipline actually works. Here are some definitions in a dictionary of what discipline means:

Discipline -

 

1. Training expected to produce a specific character or pattern of behavior, especially training that produces moral or mental environment.
2. Controlled behavior resulting from disciplinary training; self control.
3. Control obtained by enforcing compliance or order.
4. A systematic method to obtain obedience: military discipline
5. A state of order based on submission to rules and authority: a teacher who demanded discipline in the classroom.
6. Punishment intended to correct or train.
7. A set of rules or methods, as those regulating the practice of a church or monastic order.
8. A branch of knowledge or teaching.

So, knowing the definition of discipline isn't going to help you to perform discipline. Only by understanding how it works may help you perform discipline. So when someone tells you to be disciplined, you keep failing because you don't know exactly what you are suppose to be doing.

You might have heard the analogy that discipline is like a muscle. The more you use it, the more you build it and the more disciplined you become. I don't really like this analogy because it doesn't get to the root of how discipline really works

So let me simplify discipline in a simple formula:

Discipline = Getting it Done (Focus)
D = G (F)

Discipline is simply getting it done, just by doing it (just do it) you have performed discipline. To accomplish an objective is performing discipline. An objective to hit the gym everyday is to show you are performing discipline. Without any interruption to the objective. Accomplishing the objective without a halt. To perform discipline in trading is to accomplish your set objectives/trading plan/set of rules without interruption or derailing. Accomplishing (getting it done) an objective cannot occur without focus (F). You see, you focus your energy to get things done. Focus is the crucial factor in getting things done.

Here are example of failed disciplined:
Failed at losing weight: A person (bob) set an objective to lose weight. One of his goal is to not eat junk food/fast food. He failed because he ended up eating junk food.
Let's analyze what just happened. Bob couldn't get it done because of lack of focus. You could say he gave into temptation. Giving into temptation is losing your focus. Here are some of the things that were going on in Bob's mind (junk food taste so nice, hmmm yummy, just one won't hurt, a feeling of satisfaction). These are distractions that runs through his mind if he is not focused.

A person failing to exercise: I'm tired, I'll do it tomorrow, it's raining, it's cold, it's late, etc....
A person who is lazy: I'll do it later, I don't want to do it, I'm tired, I don't know how, etc...

A Disciplined person: Just do it.
This is the main thought that occupies a disciplined person and usually nothing else.

The bottom line is that a lack of focus leads to excuses and distractions, which will lead to unaccomplished objective (undisciplined).

Undisciplined trader during trading: I'll be rich, it will turn around, just a bit more, because of x it should go up, I'll enter before everyone else does, I can make a quick profit, any other excuses against a trading plan, etc...

Disciplined trader during trading: Entry, Exit and nothing else.

To achieve Focus requires concentration not to get distracted. To achieve Focus you must eliminate the distractions. Lack of Focus leads to excuses/distractions, which will lead to unaccomplished objective. Getting things done requires a degree of Focus. Getting things done is discipline.

Discipline = Getting it done (Focus)
D = G (F)

When you break it down: Discipline has nothing to do with emotions, but emotions can distract/destroy discipline.
No amount of positive self affirmation is going to get you disciplined or get the job done. Actions (Just Do it) gets the job done... And actions are only triggered by a sharpened Focus (F).

It must come from a Need... not from Materialistic Desires

Goku has been one of my inspirations. Even though he is a cartoon character, he has taught me a lot things.

Goku is a saiyan warrior. His life was met with unbelievable and tremendous challenges. He was faced with great obstacles endlessly, but his spirit to succeed could never be defeated. He learned new techniques, honed his skills and pursued to achieve his highest capabilities as a Saiyan Warrior.

His story is like David and Goliath, but it wasn't as rosey. He was always the little underdog. He didn't win the battle in an instant, infact he always lost the first encounters because the Goliath enemy would flick him like a little fly.

But with each defeat, Goku would go and train harder than ever. He would analyze the enemy's weaknesses, he would train to improve his techniques and he would come back stronger and smarter than ever.

Goku achieved the unimaginable and the foretold legend... the legend of that one day a Super Saiyan Warrior will emerge.

In face of another powerful enemy, Goku was training with his son Gohan in the hyperbolic time chamber. He was guiding his son to reach the level of a Super Saiyan. To achieve the unimaginable, to reach one's highest potential, his words to his son:

"Gohan, it must come from a need... not from materialistic desires."
~ Goku

Will it Bounce or Break Support/Resistance?

People will advice you of how convinced they are of what price will do at support and resistance. There are so much conflicting information I am gathering at the moment.



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Explanation:
5 years of looking at support and resistance, I am left with one truth to believe: For every number of charts that bounce of S/R, I can show you the same number of charts that broke through S/R without any exhaustion. Even Nostradamous won't be able to tell you what price will do at S/R.

Support/Resistance are like traffic lights. Heading towards a traffic light does not guarantee if you will arrive at the green or red lights. You see, I couldn't care less if it will bounce or break through S/R. My trading plan/system does that for me. So to a red or green light should dictate you wether to proceed (hold open position) or stop (exit position).

You can never truly know what price will do at Support/Resistance. Do not enter until you get a confirmation of the direction. Do not exit your trade until your system tells you to.

You've heard it before; Let your profits run. Support/Resistance is not a reason to exit. If you are coming to a S/R with a trade open, wait till your system tells you to exit. If your system isn't showing any signs of exit... then hold on tight and ride that runaway train!