It's A Heart-Mind Game... Are You Ready?

Subby makes the call...

Ring-ring; ring-ring; r...


NeverAgain: Hi Subby how are you?

Subby: Pretty good. How was your day?

NeverAgain: Quiet day today. So, have you started trading again for the week?

Subby: Not yet. Did review the system like you suggested on Sunday night, but it seems like since Saturday I have had so many new thoughts in my mind.

NeverAgain: Really? Like what?

Subby: Well, for one thing, I remember DoingWell saying that each wave was unique...where it starts; how fast it moves; how high it goes; and how close it comes to shore. Can't really see how deep it goes in the ocean, but I am sure that will be just as unique as well. That description sounds like the action of each candle as well. I still can't get over how calm I felt watching that ocean; but when I trade, I feel tense and a bit stressed. Am I missing something here? Can trading be relaxed?

NeverAgain: Trading can be very relaxed: just like breathing. How much thought do you give to taking a breath? Probably none. You just have to "learn"...to train yourself Subconscious Wonder...to feel the current in the market (breathe with price), and let the market flow (lead). You just follow with as minimal an amount of "thinking" as possible. I think most traders don't know how or are too afraid to trust themselves on that level. They just have never done it. Depending on the subconscious to make decisions about money is hard because the trading decision will be coming out of "nowhere" supposedly. It's hard for the conscious mind to let that happen. Nevertheless, if a trader is not in sync with the market, they should at least be able to feel it...in the pit of their stomach or somewhere.

Subby: Good points NeverAgain. Something else...I tried looking at the M15 and M5 time-frames and I seemed less anxious. Then I went farther out: H1 and M15. That felt great too. I kept tying all this back to the ocean. I noticed that when a wave formed farther out, the momentum of that wave started another wave. The size of that second wave depended on the size of the first wave, and then that one...the second one... proceeded to shore. Is that how these time-frames work, with the longer ones being like the waves farthest out? Also, at the shoreline or close to the shore is where the little kids and non-swimmers tend to play. The surfers and real swimmers go farther out so they can enjoy the depth of the ocean. The closer you are to shore, the more the waves keep breaking on you. It's not much fun there (laughing).

NeverAgain: Think you have a good point there Subby. In case you didn't know; trading on the shorter time-frames has a greater impact on the heart-mind. Many trades get beaten up there...emotionally I mean. It takes a certain skill and technique to master those waters. What I would like you do is to find the time-frames that you feel most comfortable trading. Just check them out...trial and error...and see which ones feel like "home". Then see if you can see DoingWell's setups in them and try trading them.

Subby: Okay. I'll try it. Something else...at breakfast DoingWell said that the brain is about 85% water. I believe I read somewhere that planetary alignments can affect the oceans etc. Maybe it's the magnetic fields or something. Do you think traders can be affected that way too?

NeverAgain: Don't know Subby. I have heard of traders who use Planetary Harmonics and Harmonic Vibrations in their trading. I've never really looked into it. I had some friends years ago who worked in a retail environment. They had an inside joke that on certain nights they would get the strangest customers. When that happened, they would make the joke that maybe it was a full moon that night.

Subby: That's funny (chuckling). I find the use of the term "wave" for a price swing or price leg very thought provoking. Since we are talking about waves, do you know if tide levels can be calculated?

NeverAgain: I've heard that they can be. A tide is supposed to be the regular movement of water caused by astronomical phenomena - the way the earth, moon and sun move in relation to each other and the force of gravity. Here is a good website for that kind of stuff.

Subby: Seems like there is more to this than meets the eye. Not trying to take it where no one has gone before, but if anything is going to affect me and therefore my trading, I would like to be as prepared as possible. Had some thoughts about Fibs too and how they play into all of this. I'm sending you a picture of the ocean that we were watching on Saturday. Would like to know what you think about it.

NeverAgain: Okay. Let's see if the email came in yet. Ah, here it is. You have been thinking alot Subby. (Looking at the files) Using the idea that the 2-D chart is like an aerial view of the ocean (not of the picture of the ocean you sent necessarily), the shoreline would be my answer.

Subby: NeverAgain, it just seems that since man is made up of such a large percentage of water (and the brain is too), it makes me wonder what else is in the mix. Not trying to go down that path, just wondering....

NeverAgain: I know Subby. There is so much out there to discover. For now, just try to focus on finding your time-frames: the ones you feel resonate best with you...where you feel most comfortable, look for DoingWell's system and trade it. Give me a call tomorrow and let me know how that goes, okay?

Subby: Will do. Thanks NeverAgain for taking the time to hear me out. Going to bed now. We'll see if I'll feel in the mood to trade tomorrow. Maybe a full moon will be out (laughing). If so, the market might be choppy with high tides. Have a good night.

NeverAgain: You too Subby.


As Subby gets ready for bed he can't help but think how fascinating this whole thing really might be. "Wouldn't it be something if they scheduled news releases around these planetary vibrations? Wouldn't that be wild?"


Attached are the images Subby sent to NeverAgain. What do you think?

FX4

The idea could work if the 3D were a slice in time on the 2D.
Such a point -- news/order, historical price, volatility (session change) -- would be the expectation of or reaction to other points traders have at that bar (and its peak, etc.).


Interesting. Sounds like an indicator
There's straight lines, too, when price action finds a price or time it likes. And other objects that either repeat locally or are a standard measure.
If you get my drift, I'd rather break down PA than depend on the indicator. For me: Your approach could work in general, though, to help identify the shape of moves in (for instance) range or momo. I like the "opposite" idea, too, in helping to deal with trend angles.

In the third link I showed in the last post, it talks of deep waves that approach a shore and then breaks into four wave shapes. Perhaps Mr. Dongsky kinaesthetically senses how deep waves break on different s/r lines and other objects as it continues on a roughly deep wave.

The idea could work if the 3D were a slice in time on the 2D. That's it!!! A 2-D visual but thinking in 3-D. Even a 3-D visual but thinking in 2-D. We can use our minds to add the dimension to help us see more clearly. I like your use of news... in the 2-D/3-D illustration...

No indicator implied .

Depending on indicators can help a trader to find their "balance" in the market, but they can be a limitation (a hindrance) to the trader if the trader is depending on them for the wrong things. Don't know what surfers do to learn, but at some point I would imagine that they must be able to feel the wave on the inside. Any surfers out there?

Still need to go to those links you posted. But I think there's an innate "sensing" device (back to chakras?) that most traders have never tapped into and are depending on indicators to do it all for them.

FX4

P.S. Ha-, I should have some more replies to the other aspects of your posts later this evening.

It's easier for me to think thru a (re)written chart study of my own.
I know most people have their own way of studying for a trade;
so, please see the ideas as represented in this fresh method,
rather than think the method itself is solid or not.


expansion on this into time frames...
I think it's possible that, without comfort moving from one size of time to the next, according to the rank of importance of different chart areas/patterns, an exaggerated response could happen.
Say, one would take how okay one felt in a recent nontrading experience and apply the time-frame series used there, instead of what one just created on the chart. An 'addicted' version could also exist.

In either case, the physical weight of reexperiencing a similarly large set of candles could be too much, and reversion to an older experience or simply avoiding (numb) or jumping in stubbornly (trauma) would happen.
Regardless, the smoothness from accepting what rhythm of size and thus energy of frames of candles is on the chart, would be off.

waves idea returned to; and, time frames idea included as different-sized frames in one time frame....
Why would price go at a 45D, then 30D, then 90D trend's angle?
It seems illogical.
The wave idea solves it, because that's a breaker's angles also.

Only, it's not a shoreline, it's trendline or s/r line.
Or it could be caught in a box.
It could hit a solid, stable object and be deterred.

trend-angle wave set
energy measure -- logr curve build-and-release vs. midline angle store
instances -- s/r vertical lines, levels or trendlines;
opposite-copy-centered area;
solid, pivotal temporary pattern

measure is tempermental...
Trend angles' combined momentum, when angles change energy rapidly,
or mid-distance, when one angle catches on with every measure of energy,
and the size of a pattern/area relative to others
and uniformity and/or object interchange to build or break down each step of the way

(charts)

It's easier for me to think thru a (re)written chart study of my own...
Sure, will try to follow it...

I think it's possible that, without comfort moving from one size of time to the next, according to the rank of importance of different chart areas/patterns, an exaggerated response could happen.
I tend to agree. I think each trader needs to find the time-frames that they are in sync with. Otherwise it will deplete them of precious energy resources they need to stay focused and alert when trading.

...An 'addicted' version could also exist.
Please explain.

...the physical weight of reexperiencing a similarly large set of candles could be too much, and reversion to an older experience or simply avoiding (numb) or jumping in stubbornly (trauma) would happen.
I can see that as a possibility.

The wave idea solves it, because that's a breaker's angles also.
The wave idea can solve alot I'm sure because it is a flow of something in nature.

Only, it's not a shoreline, it's trendline or s/r line.
Exactly. I just used the idea of the shoreline because that is what was visually obvious and prominent. But really it could represent the "start of the splash"...a trigger-spot of sorts...the place where price action will begin the next move. Notice that the larger Fib percentages are farther out from the region of closer concentric circles. The larger waves are out there where the larger Fib percentages are.


trend-angle wave set
energy measure -- logr curve build-and-release vs. midline angle store
instances -- s/r vertical lines, levels or trendlines;
opposite-copy-centered area;
solid, pivotal temporary pattern

measure is tempermental...
Trend angles' combined momentum, when angles change energy rapidly,
or mid-distance, when one angle catches on with every measure of energy,
and the size of a pattern/area relative to others
and uniformity and/or object interchange to build or break down each step of the way
Lost me here a bit.

Nice charts .

FX4

Lots of good stuff about waves. Thanks Ha- Had no idea about the vastness of the mountains and volcanoes etc. that are under water. Links 3,4 and 5 have some good info. about the math and physics of wave motion.

S....has to think intelligently about the waves.
When a trader observes price action...wave motion, studying it as a wave and not "price" might make it psychologically easier. For some traders, trading using a line chart is even better. May be a good idea for it to be the focus instead...the force behind the wave or price movements, and not the price itself as most traders are too emotionally attached there. (Incidentally, Alan Andrews, the man who developed the Pitchfork was a Thermodynamics major. Pitchforks relate to the energy of price swings).

Will dig more into the application of waves...just for personal interest .

Pictures below were from Link 3. Now I am sure that most people will not have the same emotional/psychological response looking at the energy flows shown by the waves in the pictures below, but in the context of a price chart with numbers on the side, everything would probably change because of perceptions. Get my drift? Hopefully I'm not swimming in high tide alone (laughing).

Most trading platforms have some kind of momentum indicator, right? Well, here's a Wiki Answers definition of momentum:

Momentum is the inertial energy of a body or object, generally a term that describes the energy stored in a moving mass. It takes into account the mass of an object (m), and its velocity (v). The formula for momentum (p) is:

p = mv

Related Information:

With this formula, we can calculate the momentum of a given object and find out how much energy it carries. This information might be useful in the design of barriers, to stop vehicles from crossing medians and running into oncoming traffic on freeways.

Here's their definition also for velocity: Physics. A vector quantity whose magnitude is a body's speed and whose direction is the body's direction of motion.

Notice the mention of direction. All of this we find in price action. So if we can minimize the effect of price on the heart-mind by thinking of it as energy that we see in waves at the beach, it should give a trader a psychological advantage. Energy is energy but it is able to produce different results depending on how/where it is channeled...my 2 cents.

Maybe he's sensing the "life"/energy in the candle and ultimately in the market as a whole at any given moment.

Traders might be surprised to know how many people with Math (maybe even Physics) degrees are hired by money management firms.

Thanks again,

FX4...

Subby put a call into NeverAgain. He left a message saying that he thinks he has found his "comfort zone" in the time-frames: H1-M15-M5. That's also where he thinks his patience level is at the moment...H4 and D1 just take too long and are boring, though they provide good information. Maybe later NeverAgain will implement a plan to help develop the heart-mind to trade those longer time-frames. Tomorrow, his plan is to look for DoingWell's system in those three time-frames. After that, he'll give it a go again.

Later on we'll see how Subby's balance curve shapes up from there.

FX4

NeverAgain just got Subby's message. He returns the call and leaves him a message to meet him at the office on Friday afternoon...just to touch bases.

Wonder what other nuggets NeverAgain would be sharing. Hmm...

FX4

A Formula For Success! I read these words many years ago in a book on hair care. It was written by someone who had to make it when everything else seemed to say, "No...you're not!". I never read the book...but these opening words have stuck with me (I added the title):

A Formula For Success!

1. Decide what you want.

2. Find out what it takes to get what you want.

3. DO what it takes, to get what it takes to get what you want.

4. TAKE what you want.

Life will pay those who are prepared for it. So will the market.

Prepare yourself, then take what you want .

FX4...

DoingWell just sent Subby an email about the health stuff they were discussing at breakfast on Saturday.

This information was sent to me by a retired Chiropractor who also studied Neurology. (Will see what else we can add for the emotions later).

Dr. Amen's 14 Worst Brain Habits: 1. Lousy Diet 2. Lack of exercise. 3. Risking brain trauma 4. Chronic stress 5. Negative thinking, chronic worry or anger 6. Poor sleep 7. Cigarette smoke 8 Excessive Caffeine 9 Aspartame and MSG 10. Exposure to environmental toxins 11 Excessive TV 12 Excessive video games 13. Excessive computer or cell phone time 14. More than a little alcohol.

So, as traders, we have the deck stacked against us. (Fortunately for us, diet (highly controllable) is #1 and Computer (nature of our livelihood) is #13)

Here are his Best Brain Diets:
1. Tons of pure water 2. Few calories, (Obesity is bad for the brain, as fat stores toxic materials and obesity doubles the risk for Alzheimers Disease (they don't say that at McD's)) 3. Lean protein, (Fish, chicken, lean pork and beef all help build the neurons in your brain) 4. Complex, low glycemic carbohydrates (whole grain, fruits and vegetables) 5. Healthy fats (fish avocados, and raw nuts all maintain nerve cell membranes and myelin -essentially, every nerve wears a coat of fat, this helps speed up the rate that the nerve works). Lots of dietary antioxidants (blueberries, or try to "eat the rainbow" and I don't mean Skittles )

-About caffeine: a little a day is okay, but it does four bad things to the brain: 1. Dehydrates it. 2. Interferes with sleep 3. Constricts blood blow to the brain causing premature aging 4. Its addictive.

-About Aspartame and MSG: it either affects you or not, can lead to various problems, e.g. arthritis, low pain tolerance, etc. You may be "okay", but it could be causing you problems you don't know are being caused by Aspartame. MSG has been linked to many problems, most commonly headaches, ADHD, anxiety and depression.

-About excessive computer time: main reason it's a bad habit is mostly because for most people it is mindless waste of time that could be spent more effectively (i.e. too much wasted time with emails, Twitter, angry birds etc). He doesn't specifically state that the computer damages your brain.

The brain can be in its most optimal state. If you are a morning trader, your best option is to not do the coffee first thing, but to do pure water first (this will give the brain the hydration it needs after going all night with no water), as you are always dehydrated in the morning. Coffee first thing only aggravates it. Also don't skip breakfast. Blood sugar is very low in the morning, and your brain needs a healthy blood sugar to make good decisions. So don't skip breakfast. Breakfast should be first thing in the morning, it should be water, some raw fruit and some protein (egg or dairy product or meat). The fruit will help to get the blood sugar regulated, and the protein will help it not to spike and crash and also the protein makes up the building blocks of the neurons.

As far as supplements go, the thing people don't realize about herbals (Ginkgo) is that you don't take them constantly. You need to go off them for a while. I LOVE Ginkgo. Ginkgo got me through Chiro college and national boards. Take them every day for the first week of the month, then go off for 3 weeks, then start again. If you are starting, you can go every other week, one week on and one week off to build up your store. Ginkgo increases the blood flow to the brain. SERIOUSLY good for memory. I have no comment on Gotu Kola, as it is just a general circulation enhancement.

You should be taking a good multivitamin. L-Tyrosine is an amino acid (should be in your multi, check the package). It helps with mental health and learning.


I can always tell when there is MSG in something I am eating...headaches begin. Also Ginkgo works wonders to increase "mental stamina and endurance". Always consult your medical/health practitioner before embarking on a new health/supplement regimen.

We'll try to help Subby find an early morning combination that would help to improve his mental abilities.

FX4

Happened to stop by Rufus' trading journal thread, and found another test that might help traders figure things out. This one is more geared to traders as the results are seen through the qualities needed for traders to become successful. This link would take you to his thread. There you'll find the the link to take the test and some other info in nearby posts that he's working on to help traders get better.

Here is a list of the categories of traders Van Tharp defines:

List of Tharp Trader Types and
Their Potential For Success in
the Markets:

High Potential for Market
Success:

Strategic Trader
Planning Trader

Good Potential for Market
Success With Some Work:

Detailed Trader
Facilitative Trader
Innovative Trader
Spontaneous Trader
Independent Trader
Administrative Trader
Values Driven Trader
Socially Responsible Trader
Accurate Trader
Adventurous Trader

Potential for Market Success
with Lots of Work or Have
Others Manage Their Money:

Supportive Trader
Artistic Trader
Fun Loving Trader

Take the test...my 2 cents.

FX4

P.S. For those too much in a hurry to go there first, here is the direct link to take the test.

Just fixed a fresh salad with Cajun grilled chicken. Grilled breasts that is in one of those grease-less grills.

Good fixins

Here's a video on Personality Types by the Tharp Institute. Other videos available there on YouTube...



Hope they help you to move at least one step closer to becoming the trader you'd like to be.

FX4

Rufus! I'm working my way back there...just had some homemade ice-cream. Not planning to trade just yet of course.

FX4

Subby has his afternoon meeting with NeverAgain today. Think they might get into a little more detail that could be beneficial to that Subconscious Wonder guy.

FX4

Subby arrives at NeverAgain's office. The two have just started to chat...


NeverAgain: So Subby how was your week? You had alot "happen" between Saturday and today I'm sure.

Subby: Yes...lots of new input and more things to think about.

NeverAgain: How was trading this week?

Subby: Very slow. I could not focus very well as my mind was trying to figure some things out. Also, I took the time to find the time-frames I feel more comfortable with.

NeverAgain: How did that go?

Subby: That went well. I just placed a few trades toward the end of the week, including today. I made some pips...still was able to see DoingWell's system. But I find that I am battling through other things now that are distractions.

NeverAgain: Like what?

Subby: It seems like my mind is just going and going...trying to solve this wave thing...It's like I'm looking for details. Can't seem to quiet my mind to really focus on trading. Another thing, I think I am still getting over a little fear. By the way, had no major pop-ups that were strong enough to hinder me, but I do feel a little fearful and it is causing me to be more cautious.

NeverAgain: More cautious is good 'cause you're trying to feel your way out of a hole so to speak. Did you happen to bring your new balance curve?

Subby: Yes I did. Here it is.

NeverAgain: Okay. I see what you mean, but you did well in that you did not go lower toward the blue horizontal line. Just continue to trade as you are comfortable. I like the wisdom in your approach. Only you can really know what you need. Just take your time, and climb back up above that trendline as best as you can. Just keep trading DoingWell's system.

NeverAgain: I would like you to take another test though, then we'll go over the results in a bit, okay?

Subby: Sure.

NeverAgain: It's already set up on that computer. Just try to be as to the point as you can.

Subby goes over to another desk to take the test. We'll get the results in a bit.


Below is Subby's recent Balance Curve.

FX4

Subby is meeting with NeverAgain, who wants him to take another test after their first go-round today and after viewing his new balance curve.


NeverAgain: Okay Subby, here are your test results. According to this Tharp Trader Test, you have been classified as an Administrative Trader.

Subby: Is that good or bad?

NeverAgain: Definitely not bad. As an Administrative Trader you should have no problem trading a system you are confident about. A downside could be that you can get stuck in details.

Subby: Do you think that is what I went through this week?

NeverAgain: Maybe. I will email you this Tharp Report for your trader type. Just a new approach I'm trying with you. We'll see how it works.

Subby: So what's my assignment for next week?

NeverAgain: If you have time this evening, read through the report. It will pinpoint your weaknesses and strengths. On Saturday, just think through what comes to mind then about what you read. Focus on what you want out of trading. Once you have come to that decision, I think it will be clear what you will have to do.

Subby: You're probably right. I do have to leave in a few minutes. Is there anything else?

NeverAgain: Not now, I think we've covered some very important ground. Just keep me posted, will ya?

Subby: Be glad to. I'm feeling more in control of myself and my trading now than when I first started.

NeverAgain: Glad to hear it. Alright, be safe and we'll talk soon. Doing a great job Subby.

Subby: Thanks. Enjoy your weekend.


Subby gets back and finds the report in his email. We'll see what thoughts surface over the weekend.

The test that Subby took was given in an earlier post.

FX4

In the market emotion cycle,
at least how I interpret it,
that big a drawdown in the midst of fear
could be a set-in of anxiety/regret.

I found a quote from this site on emotions, that chimes in exactly with (my understanding of) the market emotion cycle:

"Responsibility without choice is torment. This is the tragic curse suffered by scapegoats and other innocent people falsely accused and wrongly blamed. Choice without responsibility is greed. This is the selfish attempt to get something for nothing that is the wasteful and harmful excess of cheaters, playboys, egotists, and tyrants. Escaping responsibility is at the root of the tragedy of the commons. Taking responsibility for our choices provides the symmetry of reciprocal exchange and the basis for trust. Responsibility is a congruence between the actions we choose and our values.
Responsibility unleashes choice. "

The site goes on in the rest of the site to make what I call a personal thinking model (there's a more formal name, I'll recall it in a little while) of emotion, which is a bit over the top for me.
Everything there seems well- and fairly covered according to emotion.


Of course, it may just be me connecting the posted fear with the idea of regret.
Rebalancing with old levels of profitability are apparent. It could also be an off-session for the technical approach; only, recognition of that would shorten SL, no?

Ha-Pattern,

The quote above is powerful. This part stood out:

Taking responsibility for our choices provides the symmetry of reciprocal exchange and the basis for trust.

Lots of good stuff in that quote. Many thanks. I do think that when anxiety/regret set in, it makes it worse.

Responsibility without choice is torment.... Choice without responsibility is greed.

These are very powerful statements. Good weekend to reflect and apply the wisdom accordingly.

FX4

P.S. Will visit the linked info later.

Over the weekend, Subby read through his Trading Profile and is going to work on staying focused and not getting so caught up with too many details. His focus is just to trade Doing Well's system using his new time-frames and stay in the best possible frame of mind to "feel"/"see" the market.

Maybe after trading hours, Subby can spend some time on those other trading issues of personal interest.

FX4