Friday, March 15, 2013

March 15

Most important idea I've had in years I think is this:

The key to success in trading is -- your system must eliminate noise at your timeframe.

The confusion and fear of beginners may be due to many reasons, but very common is the fact that they are unsure when to enter or exit because there are too many signals.

It's rare to just sit there and have no compulsion to get in or out.

So what I'm doing in the past few days is -- I keep going to hourly candles -- so the charts get really smooth and suddenly -- seeing the bigger structures.  And sometimes you see that there is really no structure or clear TL so you wait -- and it develops...  or you focus on a different market where the TL is really clear and you can see clearly where a good location is to enter.

The first thing you want to do when trading is eliminate noise.  And then, when you enter, your stop is clear -- and you don't worry about a trade going against you because you are not focusing on the 1 min. candles -- price should chop around in a known range... there's no reason to exit prematurely until a signal emanates because it broke through a larger support area defined on larger timeframe. 

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