clmacdougall

I had to look up the word "lick-spittle" on line to figure out your post, I never knew such a phrase/word existed up til now. Kiwi, I'm not feigning my appreciation for UB's work, it simply helped me to see beyond the dated Market Profile works in print and carry forward my studies and understanding of the market. The debate regarding UB usually hinges on the differences between invention and evolution. UB himself has never claimed the theory for his work started with him, he openly credits Steidlmayer for that, but the evolution of it's application was in desperate need. It's simply the difference between the model T ford at it's invention and any new car on the road today. We all benefit from the evolution of someone else' work/invention.

I can't say I know much of what Brownsfan has taught or passed along, but I have certainly benefited from how UB has pushed the envelope in trying to understand the markets today. In fact he's done the very thing which Kevin Koy only wished were possible in his day. Check out pg. 14 of his book "Markets 101". In it he wished he could have created a "spectrum of timeframes" by which to read the markets. UB did just that in order to understand market bias, not bad if you ask me! And just in case you're wondering who Kevin Koy is he co-wrote Steidlmayers greatest work in my opinion "Markets and Market Logic" well worth a read.

Or perhaps more importantly, who says that someone who creates new and effective indicators, "can't" trade? Study, preparation and originality are not a sign of weakness, that's what it takes to be out in front of the crowd.

Blowfish, I absolutely enjoyed your post on recognizing an "edge". Please carry it forward as it could be a great thread. Thanks again!

I've read alot of books on Market Profile 1. CBOT Market Profile Study Guide 2. Markets and Market Logic 3. Value Based Power Trading 4. 141 West Jackson 5. Practical Trading Applications of Market Profile 6. Mind Over Markets 7. Steidlmayer on Markets 1st edition 8. Steidlmayer on Markets 2nd edition 9. Markets in Profile 10. Markets 101 Only 2 were worthwhile. Firstly you must read "Markets and Market Logic" and then read "141 West Jackson (A Journey Through Trading Discoveries)". None of the others are as powerful or impacting as the ones I've mentioned. Hope this helps.

You can get Donald Jones book for free on his website. No need to purchase it.

Hello Jerry and thank you for all the hard work, I've read and love your posts. Jerry, could you specify the differences between the the VWAP and the VWMA, and why one is better or more useful than the other. Thank you.

DugDug, could you let us know what you personally consider to be a pullback, what is your context for defining one. And once defined whose definition of a trendline do you use for trading that pullback? Thank you.

I hope you all enjoy those sayings and truths from the many books I have read. If any of them can help you than great. Above this post are 5 distinct posts listing some trading sayings put into different catagories. I couldn't think of a better place to put them than in a thread started by Tams, he's given so much code and help to others. "Give and it shall be given to you. Pressed down, shaken together and running over, will men give back into your life." New Testament, Jesus.

Well my last large contribution will be "Trading Philosophy Mix" PHILOSOPHY “MIX” WEALTHY PEOPLE FIND WHAT WORKS AND STICK WITH IT. ALOT OF LITTLE LOSSES CAN BE OFFSET BY A FEW GIGANTIC WINS. EACH SECURITY TRADES DIFFERENTLY AND NEEDS IT'S OWN APPROACH. MONEY IS EASIER TO MAKE THEN TO KEEP, IT IS WISE THEREFORE TO CONTINUALLY TAKE MONEY OUT OF THE MARKET. IN COMMODITY TRADING, TIMING IS EVERYTHING. SUCCESS IN THIS GAME DEPENDS ON SKILL AND RESEARCH, NOT SIZE OF YOUR CAPITAL. TOO MUCH MONEY CAN HANDICAP YOU TO SUCCESSFUL TRADING. NO DEGREE OF PATIENCE AND WAITING WILL TURN A MARKET AROUND. BULLS MAKE MONEY, BEARS MAKE MONEY, PIGS GET SLAUGHTERED. A GOOD TRADER MUST WORK ON THREE THINGS, 1) THE FUNDAMENTALS 2) THE TECHNICALS AND 3) THE PSYCHOLOGY OF FUTURES TRADING. A SENSITIVITY TO THE MOODS AND THE MINDS OF A MARKET CAN BE VITALLY IMPORTANT. TRADERS UNABLE TO LEAVE THE MARKET WHEN THEY ARE AHEAD WILL LEAVE WHEN THEY ARE BROKE. WAITING IS JUST AS IMPORTANT AS ACTING IF NOT MORE IMPORTANT. THE PATIENT SPECULATOR ARRANGES TO BE AT THE RIGHT PLACE AT THE RIGHT TIME WITH A CLEAR IDEA OF WHAT TO DO. IT DOESN'T TAKE MUCH MONEY TO SUCCEED, BUT IT DOES TAKE A GREAT DEAL OF DETERMINATION AND WILLINGNESS TO LEARN. AND THOSE WHO CAN LEARN, EVENTUALLY BUILD A FORTUNE IN COMMODITIES, OR AT LEAST A CONSISTENT INCOME. CAPITAL IS LESS IMPORTANT THAN KNOWLEDGE. A GOOD TRADER WILL NEED LITTLE CAPITAL TO REGAIN WHAT HE LOST, BUT CAPITAL WITHOUT KNOWLEDGE CAN SOON BE LOST. THERE IS A LOT MORE MONEY TO BE MADE BY LOOKING FOR THE BIG MOVES RATHER THAN THE SHORT TERM ONES. WHAT IN YOUR EARLY YEARS OF TRADING SEEMED HARD, WILL IN FACT HELP YOU TO LEARN WHAT IT TAKES TO BE SUCCESSFUL AND WILL BENEFIT YOU IN THE LATER YEARS GREATLY. PART OF YOUR SKILL AS A COMMODITY TRADER WILL BE TO KNOW WHEN YOU ARE TO HOLD YOUR POSITION FOR THE SHORT HAUL OR THE LONG HAUL. AND NOT TO OFFSET YOUR POSITION TOO SOON DUE TO IMPATIENCE. SPECULATING IS A THINKING MANS BUSINESS. SUCCESSFUL TRADING IS THE ART OF USING KNOWLEDGE AT THE RIGHT TIME. REAL KNOWLEDGE DOESN'T COME FROM LOOKING AT CHARTS BUT AT STUDYING THE CONDITIONS THAT CAUSE THE MARKET TO MOVE. COMMODITY TRADING IS NOT DIFFICULT, BUT IT IS SKILLFUL. PLANNING IS NOT SOMETHING IN COMMODITY TRADING, IT IS EVERYTHING. IN THE COMMODITY MARKETS, YOU DO HAVE THE CASH MARKETS WHERE A COMMODITY IS ACTUALLY CONSUMED AND SO WE HAVE THE, “ TEST OF VALUE,” TO LOOK AT SEPERATE FROM THE, “BELIEF OF VALUE,” WHICH IS WHAT FUTURES CONTRACTS ARE. FUTURES CONTRACTS REPRESENT THOUGHT WHILE CASH MARKETS REPRESENT CONSUMPTION. JUST REMEMBER THAT SOMETIMES THE FUTURES MARKET IS NOT MOVED BY REALITY, BUT BY BELIEF. SCARED DOLLARS NEVER MAKE MONEY IN COMMODITY TRADING. TOO MUCH PRESSURE. THERE IS NO GOOD ALTERNATIVE TO TRADING. TO ONLY INVEST LONG TERM IS USUALLY UNPRODUCTIVE. SELL THINGS THAT GO AGAINST YOU AND BUY THINGS THAT GO FOR YOU. 20% OF COMMODITY TRADERS MAKE ALL THE PROFITS. THEY START WITH THE DEVELOPMENT OF RULES AND TRADING STRATEGIES. OVER THE REST OF THEIR LIVES THEY MODIFY, ADJUST, SWITCH, DISCARD, REVIVE AND PLAY WITH THE RULES OF THE MARKET THEY HAVE LEARNED TO DEPEND UPON. A MARKET RULE WHICH WORKS BUT ONLY IS FOUND EVERY FEW YEARS IS STILL WORTH A MILLION DOLLARS, DON'T TREAT SUCH A RULE AS INSIGNIFICANT. EXPECT FAILURES BEFORE YOU FIND A TRADING APPROACH THAT IS RIGHT FOR YOU. THERE IS NO MORE CERTAIN RECIPE FOR LOSING THAN THE FEAR OF LOSING ITSELF. PROFESSIONAL TRADING IS A CULMINATION OF PATIENCE AND TIMING, WAITING UNTIL YOU SEE A MARKET WHICH IS WEAK ENOUGH THAT YOU CAN'T LOSE WHEN TRADING IT. AMATEURS GO BROKE TAKING LARGE LOSSES, PROFESSIONALS GO BROKE BY TAKING SMALL PROFITS. EXCEPTIONAL TRADERS ARE ABLE TO REMAIN CALM AND DETACHED REGARDLESS OF WHAT THE MARKETS ARE DOING. MEN WHO CAN BOTH BE RIGHT AND SIT TIGHT ARE UNCOMMON, IT IS ONE OF THE HARDEST THINGS TO LEARN. BUT IT IS ONLY AFTER YOU HAVE GRASPED THIS FACT THAT YOU CAN MAKE BIG MONEY. PREDICTIVE SKILLS ARE NOT EASILY LEARNED AND YOU MUST HAVE FORTITUDE TO HOLD ON UNTIL YOUR METHOD FOR ENTRY IS SEEN BEFORE ENTERING THE MARKET. THOUGHTS OF ACTION WILL CRYSTALLIZE INTO CIRCUMSTANCES OF WEALTH AND FINANCIAL FREEDOM, BEYOND ALL EXPECTATIONS. NOWHERE IN THIS WORLD DO YOU COME CLOSER TO SEEING YOUR TRUE SELF AS IN THE COMMODITY FUTURES MARKET. NOTHING CAN BRING YOU PEACE BUT THE TRIUMPH OF PRINCIPLES. PARTICIPATING IN THE MARKETS IS THE ONLY THING THAT CAN TRULY DEVELOP YOUR TRADING SKILLS. GOOD TRADERS OFFER NO EXCUSES AND MAKE NO COMPLAINTS. MARKET UNDERSTANDING + UNDERSTANDING YOURSELF = SUCCESS. SUCCESSFUL TRADING IS ABOUT IDENTIFYING ADVANTAGEOUS PROBABILITY. TO BE SUCCESSFUL IN THE MARKETS YOU SHOULD REMAIN A LIFELONG STUDENT OF IT, IMMERSED IN THE MARKETS WITH AN OPEN MIND AND AN INQUISITIVE SOUL. TRADING ISN'T FORECASTING, BUT IT IS ASSESSING THE RISK OF YOUR POSITION. YOU DO THIS BY EXITING POSITIONS WITH ABOVE AVERAGE RISK AND ESTABLISHING POSITIONS THAT PROVIDE FAVORABLE RISK/REWARD CHARACTERISTICS. DISCOVERY CONSISTS OF SEEING WHAT EVERYONE HAS SEEN AND THINKING WHAT NOBODY HAS THOUGHT.

Seems like it's time for "Trading Psychology The" PHILOSOPHY “THE” THE MOST IMPORTANT LESSON IS THAT OF INDEPENDENT THINKING. SIFT THROUGH ALL THE INFO AND TRADE FOR YOURSELF. THE ACTION IN COMMODITIES PROMISES PERSONAL AND FINANCIAL RETURN OF AN UNLIMITED SCOPE FOR THOSE CAPABLE AND WILLING TO TAKE THE CHANCE. THE MORE WAYS YOU BUILD INTO YOUR PLAN TO FORCE THE CLOSURE OF LOSING POSITIONS AND TO MAXIMIZE PROFITS ON THE WINNERS, THE MORE MONEY YOU CAN MAKE. THE TRADERS ALLEGIANCE IS TO THE GAME AND HIS TRADING PROGRAM. THE MAJORITY OF LOSERS IN COMMODITIES TRADING ARE IMPATIENT HOT HEADED TRADERS WHO HAVE NO PLAN. THE TEMPTATION TO CLOSE OUT A WINNING POSITION AND TAKE SMALL PROFITS IS GREAT, BUT IT MUST BE OVERCOME. THE BELIEFS THAT YOU HAVE ABOUT YOURSELF AS A PERSON WILL IMPACT THE OUTCOME OF YOUR PROFITS IN A BIG WAY. CONTRADICTORY BELIEFS ABOUT YOURSELF DESTROY YOUR ABILITY TO SUCCEED. THE MORE YOU GIVE WITH FREEDOM AND JOY, THE MORE IT WILL RETURN TO YOU MULTIPLIED. IF YOU FEEL THAT BY GIVING YOU HAVE LESS, THE ENERGY BEHIND THE GIVING DIMINISHES THE GIFT AND THE RETURN. THE TRADERS WHO ARE MOST LIKELY TO FAIL ARE THE ONES WHO ENTER THE MARKET UNPREPARED – EMOTIONALLY, PSYCHOLOGICALLY AND TECHNICALLY. THE MARKETS ARE INFLUENCED BY EMOTIONALISM, SO THERE IS NOTHING AS DISASTOROUS AS A RATIONAL INVESTMENT POLICY IN AN IRRATIONAL WORLD. THE FEAR OF LOSING MONEY WILL CAUSE YOU TO SELL TOO SOON OR HOLD ON FOR TOO LONG. DISCIPLINED TRADING OVERCOMES THAT FEAR AND GIVES YOU THE EDGE. THE BIGGEST OBSTACLE TO YOU MAKING MONEY ON THE FINANCIAL MARKETS IS YOUR EMOTIONS. IF YOU DON'T LEARN HOW TO HANDLE YOUR EMOTIONS, YOUR ACCOUNT WILL QUICKLY SLIDE TO MELTDOWN. IDENTIFY YOUR NEGATIVE FEELING AND REPLACE THEM WITH POSITIVE ONES; AT THAT MOMENT SUCCESS IS YOURS THE FEAR OF BEING WRONG OR THE NEED TO BE RIGHT HAS LOST MORE MONEY FOR PEOPLE THAN ALL OF THE OTHER ATTITUDES COMBINED. THE PAIN OF LOSS IS TWO AND A HALF TIMES GREATER THAN THE JOY OF MAKING A PROFIT. THE MARKET IS A STERN MASTER. YOU NEED TO DO ALMOST EVERYTHING RIGHT TO WIN. IF PARTS OF YOU ARE PULLING IN OPPOSITE DIRECTIONS, THE GAME IS LOST BEFORE YOU START. THE HARD WORK NEEDED IN TRADING IS ASSOCIATED WITH SUCH QUALITIES AS, VISION, CREATIVITY, PERSISTENCE, DRIVE, DESIRE AND COMMITMENT. THE WAY TO BUILD SUPERIOR LONG TERM RETURNS IS THROUGH PRESERVATION OF CAPITAL AND HOME RUNS. WHEN YOU HAVE TREMENDOUS CONVICTION ON A TRADE, YOU HAVE TO GO FOR THE JUGLAR. IT TAKES COURAGE TO BE A PIG. THE MARKET SELDOM TOLERATES THE CARELESSNESS ASSOCIATED WITH TRADES BORN OUT OF DESPERATION. THE MIND IS LIKE A PARACHUTE, IT'S ONLY GOOD WHEN IT IS OPEN. THE FEWER TECHNIQUES YOU EMPLOY, THE HAPPIER YOU WILL BE. THE CLOSER YOU ARE TO BEING BORED WHEN YOU TRADE, THE CLOSER YOU ARE TO BEING SUCCESSFUL. THE WINNER RARELY BLAMES ANYONE ELSE FOR HIS MISTAKES, HIS MIND IS RECLUSIVE, NOT LETTING OTHERS INFLUENCE IT UNLESS BY MUTUAL ENLIGHTENMENT AS IT IS EXPANSIVE AND ENCOMPASSING. ANALYZING, QUESTIONING, APPRECIATING AND ABOVE ALL ENJOYING WHAT IT IS DOING. IT SHUNS ALL DESTRUCTIVE ELEMENTS. IT LOVES NEW INFORMATION, BUT THOROUGHLY SCREENS IT. THE MARKET DOES NOT HABITUALLY SHOWER LOOSE DOLLARS ON THE CASUAL PLAYER WHO PLAYS THE GAME. THE WINNER MUST TRAIN HIMSELF TO REJECT ALL THOUGHTS OF LOSING AT ALL TIMES. HE MUST CONCENTRATE ON WINNING. THE PUBLIC SPECULATOR HAS TO BE ABLE TO FORECAST PRICE AND BE AWARE OF MARKET MOVEMENT. THE MARKET EXISTS FOR THE SAKE OF ADVERTISING OPPORTUNITY. THE GREATEST POINT OF MARKET OPPORTUNITY IS WHEN YOU FEEL ALONE IN THE TRADE YOU ARE MAKING. THE POSITION TRADER GIVES BACK ALOT WHEN HIS TREND IDENTIFICATION IS WRONG, WHILE THE ACTIVE TRADER SUFFERS ONLY SMALL LOSSES. THE TRADER WHO IS WILLING TO TRADE FOR SMALL MOVEMENTS, RISKS LESS AND MAKES MORE BY WINNING CONSISTENTLY. THE PRIMARY OBJECTIVE WHEN YOU COMPETE IN THE FINANCIAL MARKETS IS TO PROTECT YOUR CAPITAL AT ALL TIMES. THE COMMODITY TRADING IS BUSINESS SHOVED INTO A SHORT LIFESPAN. IT'S 6 MONTHS SHOVED INTO 24 HRS. IT'S LIFE WITHOUT HAVING TO WAIT 50 YRS. TO SEE IF YOU CAN MAKE IT. THE MARKETS RESPONSE TO NEWS IS OFTEN OVER EXAGGERATED, BUT OFTEN YOU'LL SEE A CORRECTION IN THE LONG RUN. THE DEFINITION OF A SUCCESSFUL TRADER IS SOMEONE WHO DOESN'T FEEL EXCITED OVER MAKING OR LOSING BIG MONEY. IT'S JUST A BUSINESS. THE GAME IS PLAYED WITH THE MIND AND THE EMOTIONS, TO THE MARKET NOTHING MATTERS UNLESS THE MARKET REACTS TO IT. THE TWO ENTITIES WHICH RULE THE MARKET, FEAR AND GREED. THEY PASS THE SCEPTER OF CONTROL BACK AND FORTH EVERYDAY AND THAT'S HOW WE MAKE MONEY. TRADING IN THE VOLATILITY THEY PRODUCE. THE AGGRESSIVE HUMAN DYNAMO MAKES MORE MISTAKES THAN THE QUIET, CONSERVATIVE AND CAREFUL TRADER. THE BIG MONEY IS MADE SITTING, NOT TRTADING, JUST SITTING. THE MOST SUCCESSFUL TRADERS ARE MODEST AND SPEAK VERY LITTLE. THE BIG MONEY ISN'T ALWAYS SMART MONEY, BUT IT IS SELDOM STUBBORN MONEY. THE BIG WINNERS LEARN HOW TO LAUGH AT THEIR LOSSES. THE BIG WINNERS NEVER LET THE SIZE OF THEIR CONTRACT OR THE NUMBER OF CONTRACTS THEY HOLD THROW THEM OFF. THE GAMBLER IS ALWAYS LOOKING FOR A BIG WIN, A MAGIC THRILL. A METHOD PLAYER CONCERNS HIMSELF WITH PERCENTAGES AND THE ULTIMATE RESULTS OF PROLONGED SEQUENCES. THE PERFECT TRADE IS THE ONE WHICH REQUIRES NO EFFORT. IN TRADING, WHENEVER THERE IS EFFORT, FORCE, STRAINING, STRUGGLING OR TRYING, IT'S WRONG. YOU'RE OUT OF SYNC WITH THE HARMONY OF THE MARKET. THE WORD HOPE IS A DIRTY WORD FOR A TRADER, BE IT HOPING FOR A MARKET MOVE IN A LOSING TRADE OR HOPING FOR A REACTION THAT WILL ALLOW FOR A BETTER ENTRY IN A MISSED TRADE. THE WINNER POSESSES THE TREMENDOUS CONTROL NEEDED TO OVER-RIDE HIS STERILE BAD HABITS HE MAY HAVE DEVELOPED AND REHEARSED FOR YEARS. THE WISE TRADERS MAKES MANY SMALL TRADES, REMAINS INVOLVED IN THE MARKETS, AND CONSTANTLY MAINTAINS AND SHARPENS HIS FEEL FOR THE MARKET.

Now for "Trading Philosophy If" PHILOSOPHY “IF” IF YOU MAKE A CERTAIN TYPE OF TRADE AND IT WORKS, MAKE IT AGAIN. IF YOU HOPE TO MAKE BIG MONEY YOU MUST DEVELOP A METHOD OF TRADING WHICH WILL ENABLE YOU TO DETECT BIG MARKET ADVANCES AND DECLINES AND TO TRADE THEM PROFITABLY. IF YOU KEEP YOUR MIND CALM, EVERY LOSS YOU TAKE SHOULD TURN YOU INTO A BETTER TRADER. IF YOU ARE GOING TO SUCCEED IN COMMODITY TRADING, YEAR IN AND YEAR OUT, DEVELOP YOUR OWN SYSTEM. DON'T FOLLOW THE RECCOMENDATIONS OF OTHERS. IF YOU SUFFER A LOSS YOU MUST LEARN TO RE-EVALUATE THE MARKET, THEN GET BACK INTO IT AND TAKE A POSITION. IF YOU LEARN HOW TO BE PATIENT AND TO WATCH THE MARKETS, YOU WILL BECOME THAT MUCH CLOSER TO BECOMING A TRULY SUCCESSFUL TRADER. IF THE MARKET IS HEADING ADVERSELY, DO NOT SEARCH OUT REASONS TO SUPPORT A LOSING POSITION. THE MARKET WILL SHOW YOU WHEN YOU ARE WRONG, JUST BE HUMBLE ENOUGH TO HEED THE WARNING. IF YOU ARE TEMPTED FOR A SECOND OPINION ON A TRADE, THAT'S A SURE SIGN TO GET OUT OF THAT TRADE. IF YOU FIND A WINNER, RUN WITH IT AS LONG AS TIME AND EFFORT WILL ALLOW. IF YOU TRADE AGAINST THE TREND IT'S A GREAT WAY TO LOSE. IF THE PRICE CLOSES AT THE HIGH OF THE DAY, TRADERS ARE OPTIMISTIC OF MORE GAINS TO COME. IF YOU REALLY LIKE TO MAKE MONEY, YOU WILL MAKE IT. IT'S ONE OF THE REASONS WHY THE RICH GET RICHER IS THAT THEY LIKE TO MAKE MONEY. THEY FIND IT FASCINATING. IF YOU STICK WITH YOUR MISTAKES JUST BECAUSE YOU WANT TO PROVE, “ I SAID SO,” IT'S FOOLISHNESS. IF AHEAD, WITH THE MARKET MOVING FAVORABLY, PLAY FOR THE BIG SCORE AND DON'T SETTLE FOR A MINOR PROFIT. IF YOU DON'T GO THROUGH A PERIOD OF SOUL SEARCHING DUE TO LOSS, A COMMODITY TRADER WILL HAVE A DIFFICULT TIME ACHIEVING LONG TERM SUCCESS. IF YOU TELL OTHERS WHAT YOU ARE DOING IT GETS YOU INTO MORE TROUBLE THAN THE MARKETS. IF LOSING TRADES ARE A CONSEQUENCE OF FOLLOWING AN APPROACH THAT HAS AN EDGE IT WILL NOT INTERFERE WITH ULTIMATE TRADING SUCCESS. BUT TRADING MISTAKES WILL. IF YOU WIN OR LOSE YOU ARE RESPONSIBLE FOR YOUR OWN RESULTS. IF YOU LISTEN TO THE OPINION OF OTHERS IT WILL COST YOU MONEY. YOU NEED TO FOLLOW YOUR OWN LIGHT. IF YOU COMBINE TWO TRADERS YOU WILL GET THE WORST OF BOTH. IF YOU WIN STAY CALM, WHEN YOU LOSE STAY CALM, WHEN YOU COMMIT YOURSELF TO THE MARKET STAY CALM. DO NOT ALLOW YOUR BRAIN TO BE DEBILITATED BY EMOTIONS. IF YOU HAVE FOUND A WINNING STYLE, STICK WITH IT! DON'T CONTINUE TO LOOK.

Here's another that I call "Trading Philosophy You" PHILOSOPHY “YOU” YOU CANNOT AFFORD TO PLAY A LONG TERM GAME, YOUR GAME IS PRICE MOVEMENT, NOT EVENTUAL EARNINGS. YOU ARE PLAYING A GAME OF MONEY MANAGEMENT, NOT JUST TRADING. YOU ARE PLAYING THE GAME OF BEARING RISK AS A COMMODITIES TRADER. YOU ARE 1000% BETTER OFF TRADING FUTURES THAN OPTIONS. YOU MUST BUILD A PROGRAM THAT SUITS YOUR NEEDS, PERSONALITY AND ECONOMIC GOALS. YOU HAVE TO BE STRONG IN THE FACE OF FAILURE. YOU NEED TO KNOW YOU WANT TO DEVOTE ALL THE TIME AND ENERGY THAT ACTIVE TRADING REQUIRES, YOU MUST DO IT IN A BUSINESS LIKE WAY YOU WILL RECEIVE WHAT YOU FOCUS ON. REPLACE SPEECH AND THOUGHT ABOUT LACK AND LIMITATION WITH THOUGHTS AND SPEECH LIKE, “ I HAVE EVERYTHING I NEED RIGHT NOW TO EXPERIENCE ABUNDANT PROSPERITY.” YOU CAN DRAW AFFLUENCE TO YOU LIKE A MAGNET, USING YOUR BELIEFS AND YOUR ACTIONS. YOU CAN HAVE COMMAND OF YOUR THOUGHTS. THE MINUTE YOU KNOW YOU HAVE THE POTENTIAL TO PROSPER AND SUCCEED CREATIVE IDEAS, RESOURCEFULNESS AND OPPORTUNITIES WILL ABOUND. ONLY THEN CAN WE CLAIM OUR LEGACY OF ABUNDANCE AND PROSPERITY. YOU MUST BELIEVE IN YOURSELF AND HAVE CONFIDENCE TO MAKE A LIVING IN THIS GAME. YOU MUST HAVE A QUIET, PRIVATE PLACE FROM WHICH YOU CAN STUDY, RESEARCH AND MAKE YOUR TRADES. YOU MUST BELIEVE DEEP DOWN INSIDE THAT YOU ARE WORTHY OF FINANCIAL SUCCESS; NEXT SET REALISTIC GOALS AND FINALLY SET YOUR GOALS INTO SMALL INCREMENTSAND REWARD YOURSELF WHEN THEY ARE REACHED. YOU MUST HAVE THE COURAGE TO ACT. EVERYDAY AS A SPECIAL SITUATION IS DEVELOPING IN SOME COMMODITY THAT CAN HELP YOU TO BUILD A FORTUNE. YOU CAN'T WIN IF YOU FEEL YOU HAVE TO TRADE EVERYDAY. INACTIVITY WILL HELP YOU TO REST AND TO GAIN A NEW INSIGHT. YOU HAVE TO BE MENTALLY PREPARED FOR REVERSALS WHEN YOU LEAST EXPECT THEM. YOU CAN'T WIN WITHOUT AN EDGE, IF YOU DON'T KNOW WHAT YOUR EDGE IS, YOU DON'T HAVE ONE. TO HAVE AN EDGE YOU MUST HAVE A METHOD. YOU MUST HAVE A PLAN TO WIN IN THE MARKETS. YOU NEED TO DO YOUR OWN THINKING, DON'T GET CAUGHT UP IN MASS HYSTERIA. YOU ARE GOING TO HAVE TO DEVOTE 90% OF THE TIME YOU SPEND IN COMMODITY TRADING TRAINING TO CHANGING YOUR PERSONALITY MAKE UP. YOU WILL NEVER BE CERTAIN ABOUT THE NEXT TRADE YOU WILL MAKE, BUT DEVELOPING YOUR INTUATIVE ABILITIES WILL PUT THE ODDS IN YOUR FAVOR. YOU MUST BELIEVE THAT THE MARKETS ARE NOT EFFICIENT AND THAT WHAT HAPPENED IN THE PAST DOES IN FACT EFFECT THE ODDS OF FUTURE ACTIVITY. YOU MUST THEN LEARN HOW TO LIVE IN A WORLD WHERE NORMAL SUMS OF MONEY ARE DWARFED BY WHAT YOU ARE MAKING, ONCE YOU DEVELOP THE SKILL TO SUCCESSFULLY TRADE. YOU MUST START COMMODITIES TRADING BY LEARNING HOW NOT TO LOSE. YOU MUST FIND THE CATALYST THAT MAKES YOUR INVESTMENT RISE OR FALL AND FOLLOW THAT. YOU'LL ABSORB THE MOST KNOWLEDGE AT THE FASTEST RATE BY WATCHING MARKET ACTION AS MUCH AS POSSIBLE. YOU MUST KEEP ADJUSTING YOUR SHORT TERM STRATEGY. YOU MUST CARRY WITH YOU YOUR OWN STRUCTURE , MEANING YOUR OWN DEFINITIONS, PRINCIPLES AND CRITERIA ALONG WITH YOU EACH TIME YOU ENTER THE MARKET YOUR TRADING SYSTEM SHOULD MAKE IT SO THAT YOU NEVER HAVE TO MAKE A JUDGEMENT CALL. YOU MUST BE STRICT AND STICK TO YOUR TRADING PLAN, DON'T LET YOUR EMOTIONS OVERRULE YOUR TRADING PLAN. YOU MUST AVOID OPTIMISM, HOPE AND SPONTANEITY AT ALL TIMES. WHEN TRADING STICK TO YOUR PLAN. YOU MUST BE GRATEFUL WHEN YOU WIN IN COMMODITIES. YOU MUST HAVE THE COURAGE AND INTELLIGENCE TO ADMIT WHEN YOU LOSE. YOU MUST SHOW COURAGE OR GET OUT. YOU MAY PRESENTLY BE LOSING BUT DON'T GIVE UP! YOU WILL FINALLY CRAWL OUT OF THE LEARNING CURVE VICTORIOUS, KNOWING HOW TO TAKE CONSISTENT PROFITS OUT OF THE MARKET. YOUR STUBBORN RESOLVE AND YOUR BELIEF SYSTEM WILL HELP YOU TO EVENTUALLY MAKE IT IN THE MARKET. YOU MUST TRADE TO TRADE WELL AND EVENTUALLY THE MONEY WILL COME. YOU MUST ADJUST YOUR THOUGHTS AND ACTIONS TO WHATEVER HAPPENS IN THE MARKET. YOU MUST BE PLIABLE. AS LONG AS YOU DO THIS, YOU CAN PROGRESS. YOU MUST NOT HAVE A LOSS OF CONFIDENCE, IT IS THE GREATEST LOSS YOU CAN SUFFER. YOU BECOME UNABLE TO REASON CLEARLY. YOU ARE AFRAID TO BUY OR SELL WHENEVER YOU FIND A SPECIAL SITUATION. YOU MUST BE A LONE WOLF, KEEPING YOUR TRADING PLANS A SECRET. YOU MUST TRY TO BE CONSERVATIVE. THE MORE OF A FOLLOWER YOU ARE, THE GREATER YOUR POSSIBILITIES FOR SUCCESS. YOUR PERSISTANCE AND DETERMINATION ALONE ARE UNBEATABLE. YOU WILL DEFEAT YOURSELF IF YOU CANNOT CONFORM TO WHAT THE GAME DEMANDS OF EVERY SUCCESSFUL TRADER. COMMODITY TRADING WON'T DEFEAT YOU BECAUSE OF IT'S COMPLICATIONS, FOR IT IS RATHER SIMPLE. YOUR GOAL IS TO MAKE A FAIR AND ADEQUATE RETURN ON YOUR CAPITAL, NOT TO BECOME A COMPULSIVE TRADER. YOU MUST HAVE A DETAILED OPERATING PLAN ---- STAY WITH IT. BE INDEPENDENT. YOU MUST LEARN HOW TO WIN SMALL FIRST, THEN YOU WILL LEARN HOW TO WIN BIG WHEN THE BIG MARKETS COME.IN COMMODITY TRADING WINNING IS SELF PERPETUATING, ONCE YOU START WINNING, IT BECOMES EASIER AND EASIER TO CONTINUE TO WIN. YOU MUST A) BE QUIET B) DON'T BE OVERLY EAGER TO TRADE C) LEARN HOW TO DETECT A WINNER D) STICK WITH IT. YOU NEED SKILLS, DISCIPLINE, FORBIDDEN KNOWLEDGE, MONEY AND CONTROL OVER YOUR EMOTIONS, TO TRADE SUCCESSFULLY YOU MUST GET AGGRESSIVE WHEN YOU ARE WINNING AND TO DITCH A LOSER. YOU MUST HAVE AN ORDERLY CONTROLLED PERSONALITY WITH A STRONG WILL TO WIN TO MAKE IT IN COMMODITIES. YOU MUST LEARN TO ACCEPT LOSSES AS THE COST OF DOING BUSINESS. YOU HAVE TO LEARN, NOBODY IS A BORN TRADER, IT COMES EASY FOR SOME AND HARDER FOR OTHERS, BUT WE CAN ALL LEARN IT. YOUR TIME SPENT STUDYING CHARTS IS THE BEST OF ALL INVESTMENTS. IT WILL CONTINUE PAYING OFF FOREVER. YOU MUST LEARN TO BLAME YOURSELF IF YOU LOSE MONEY. YOU HAVE TO WANT TO WIN VERY BADLY. YOU HAVE TO ACT POSITIVELY.YOU HAVE TO WORK HARD. IF YOU THINK YOU DESERVE TO BE RICH OR HAVE A RIGHT NOT TO BE POOR, YOU WILL LOSE. EVERYTHING IN LIFE IS ATTITUDE. NOTHING IS MORE IMPORTANT. YOU MUST START SMALL AND STAY MODEST, UNTIL YOU HAVE A GOOD ENOUGH TRACK RECORD TO EXPAND YOUR COVERAGE. YOU MUST TREAT SMALL POSITIONS WITH THE SAME COMMON SENSE AS LARGE POSITIONS. YOU SHOULD ACT ON MARKET DREAMS. SUCH DREAMS ARE OFTEN RIGHT AS THEY ARE OUR SUBCONSCIOUS TRYING TO BREAKTHROUGH THE BARRIERS ESTABLISHED BY OUR CONSCIOUS MIND. YOU MUST FIRST BE SURE YOU REALLY WANT TO TRADE. YOU SHOULD CHOOSE A TRADING METHOD THAT IS CONSISTENT WITH YOUR PERSONALITY. YOU MUST TRADE ONLY WHEN YOU FEEL CONFIDENT AND OPTIMISTIC. YOU MUST NEVER BE LOYAL TO A LOSING POSITION. YOU SHOULD PULL A PORTION OF YOUR WINNINGS OUT OF THE MARKET. IT TEACHES YOU TO VIEW PROFITS AS REAL MONEY. YOU'RE TRADING PLAN MUST BE TO COMPREHEND AS MANY RELATIONSHIPS AS POSSIBLE IN DETERMINING MARKET FLOW. YOU MUST RESIST THE TEMPTATION TO LIE TO YOURSELF TO BE A WINNER YOU MUST LEARN FROM YOUR SUCCESSES, NOT FROM YOUR FAILURES. YOU MUST NEVER LET ANYONE KNOW WHAT YOU'RE UP TO.AS A WINNER THE ONLY THING YOU MUST HIDE IS YOUR STYLE AND APPROACH IN MAKING MONEY IN THE FUTURES MARKET. YOU MUST REMOVE FEAR FROM YOUR PERSONAL LIFE. YOU SHOULD HAVE ONE FIRM RULE. NEVER EVER TELL ANYBODY HOW WELL YOU ARE DOING. LET NO ONE KNOW WHAT YOU ARE DOING, WHY, WHEN OR HOW. YOU SHOULD REMOVE A PORTION OF A LL PROFITS FROM YOUR ACCOUNTS. YOU MUST GUARD YOUR SECRET: DO NOT EXPATIATE ON FAILURE OR ASSOCIATE WITH THOSE WHO DO. STRIVE TO FEEL AND FEED A SENSE OF VICTORY. PRATING ABOUT YOUR INVESTMENTS ONLY SCATTERS ENERGY. IT INVITES NEGATIVE EXPRESSIONS FROM PEOPLE WHO ARE ENVIOUS, STUPID OR JUST PLAIN ZEROES OR MINUSES. SUCCESS MUST BE CONTINUALLY FED. YOU STARVE THE CREATURE WHEN YOU FAIL TO KEEP MATTERS PRIVATE. YOU MUST SET YOURSELF APART FROM THE GOALS AND THE ASPIRATIONS OF OTHERS, YOU HAVE TO MOVE OUTSIDE OF THAT BUBBLE IN ORDER TO BE SUCCESSFUL. YOU MUST BE ABLE TO FIND A NEW PROGRAM WHEN THE OLD ONE IS NOT WORKING, AND HAVE THE DISCIPLINE TO IMPLEMENT IT. YOU MUST LOOK AT THE RIGHT MARKET INFORMATION, IN THE CORRECT CONTEXT, WHILE DEVELOPING AN OBJECTIVE PROBABILITY BASED APPROACH TO TRADING. YOU SHOULD CUT YOUR LOSSES AND LET YOUR PROFITS RUN. YOUR SUCCESS IN TRADING IS A MATTER OF RISK MANAGEMENT, IN UNDERSTANDING VOLATILITY. BE IT GUT BASED OR INDICATOR BASED YOU SHOULD PICK A COMMODITY THAT FITS THE WAY YOU TRADE, WHICH RESPONDS TO THE TECHNICAL INDICATORS IN A WAY YOU UNDERSTAND. YOU SHOULD TRADE SIDE TO SIDE MARKETS VERY LITTLE, IF AT ALL.

Hope you enjoy. This is what I call "Trading Psychology Don't" PHILOSOPHY “DON'T” DON'T TRY TO GET RICH QUICK. DON'T BE AFRAID TO TAKE SMALL LOSSES. DON'T TRY TO BUY AT THE BOTTOM OR SELL AT THE TOP. DON'T TRADE IN A SIDEWAYS MOVING MARKET, YOU WILL NEVER BE CERTAIN OF THE DIRECTION IT WILL TAKE YOU AND YOU WILL LOSE MONEY MORE OFTEN THAN YOU WILL WIN. DON'T TRY TO IMPOSE YOUR WILL ON THE MARKETS. BE A TREND FOLLOWER, NOT A TREND PREDICTOR. IF YOU ARE BULLISH, JUMP ONTO UPTRENDS; IF YOU ARE BEARISH HOP ONTO DOWNTRENDS. WAITING FOR JUST THE RIGHT MOMENT IS VIRTUOUS AND ESSENTIAL. DON'T WASTE TIME ON BECOMING AN EXPERT ON ONE COMMODITY ALONE. DON'T BECOME TOO ENAMORED WITH ONE STRATEGY. DON'T ALLOW YOUR EGO TO ATTACH ITSELF TO YOUR TRADING OR YOU'LL LOSE FOR SURE. DON'T LEAVE YOUR MONEY TIED UP WITH A LOSER. DON'T FOLLOW THE LARGE SPECS OR THE HEDGERS WHEN MAKING YOUR TRADES. DON'T TRADE AS IF THE WORLD WILL COME TO AN END IF THE PRICE DOESN'T GO UP OR DOWN. VERY FEW PEOPLE SUCCEED IN COMMODITIES IF THEY TRADE ON A RAZORS EDGE. DON'T QUIT IN TRADING AFTER A BAD DAY. STAY WITH IT AND YOU WILL WIN. DON'T BE TOO PROUD TO GET OUT WHEN YOU ARE LOSING, OR YOUR EGO WILL CAUSE YOU TO LOSE EVEN MORE. DON'T USE HOPE, FAITH AND OPTIMISM AS DECISION MAKING TOOLS IN THE MARKET, JUST STICK TO YOUR PLAN. DON'T TRY TO CHANGE THE RULES THAT HAVE BEEN SUCCESSFUL, CHANGE YOURSELF. DON'T TELL ANYONE WHAT YOU KNOW OR WHAT YOU BELIEVE CONCERNING A TRADE. ONCE YOU DO YOU UPSET YOUR EQUILIBRIUM. BY REPEATING TOO OFTEN WHAT YOU THINK, YOU CREATE EGO AND FIND IT HARD TO CHANGE WHEN YOU ARE WRONG, LEADING TO LARGE LOSSES. DON'T EVER BECOME DISPLEASED WITH TRADING AND QUIT. THE WORLD IS FULL OF QUITTERS, THEY MAKE IT EASY FOR THE AMBITIOUS ONES TO SUCCEED. EVENTUALLY YOU WILL LEARN ALL YOU NEED TO KNOW ABOUT TRADING. DON'T TRADE WHEN YOU FEEL EMOTIONALLY STRESSED. DON'T MAKE SPECULATION A FULL TIME JOB. CALL SPECULATION YOUR HOBBY. KEEP YOUR OTHER INTERESTS -------- MAINTAIN YOUR PERSPECTIVE. DON'T GET GREEDY ON RISES. SELL INTO STRENGTH. DON'T AIM FOR KILLINGS, AIM AT HIGH PROFITS. DON'T LET THE FACT THAT YOU MISSED THE FIRST PART OF A MAJOR TREND MOVE KEEP YOU FROM INVESTING IN THE DIRECTION OF THAT TREND IN THE FUTURE WHEN THE TIME IS RIGHT AND THE STOP LOSS CAN BE DEFINED. DON'T TAKE SMALL QUICK PROFITS IN MAJOR POSITION TRADES. DON'T TALK ABOUT YOUR POSITION. DON'T TRADE FOR EXCITEMENT, TRADE TO WIN. DON'T LET THE CHARTS TELL YOU WHAT TO DO, INSTEAD TELL THE CHARTS WHAT YOU REQUIRE OF THEM BEFORE ENTERING A TRADE. DON'T TRY TO GET TOO CLOSE TO THE INFORMATION CENTER OF THE WINNER, IT WILL UPSET HIM. DON'T LET ANYONE INSIDE OF THE TRADING BUSINESS GET INSIDE OF YOU. THEY WILL DESTROY YOUR TRADING. NEVER LET ANYONE INSIDE OF THE BUSINESS INFLUENCE YOU. DON'T TRY TO REDUCE TRADING TO A PURELY MECHANICAL EXERCISE. MECHANICALNESS MUST BE DISPLACED WITH AWARENESS. DON'T ENTER INTO A MAJOR POSITION ON AN IMPULSE, IT SHOULD BE WELL THOUGHT THROUGH. PHILOSOPHY DON'T 1.pdf

Sorry about that eurotrader, I guess that's an old address. It will suffice to say that when you have multiple equals always draw your line to or from the last one in the multiple set, no matter how many there happens to be. If I come across the article I will let you know what address I found it at.

Mr. Demark dealt with the problem of multi-equals in an article of "Futures online edition". I hope this email add still works, if not just let me know. http://www.futuresmag.com/industry/references/demark1097.html

On a bit of a sidenote, I found it really important to understand that the break of a trendline was really nothing more than either a slowing of price momentum or a slight change in support or resistance, it has a very limited predictive ability concerning the degree of change which "might" follow it being broken IMHO. With all that said Mr. Demarks TD line stuff is the most thorough out there concerning trendlines. At least that I've come across.

You can find all the answers you are looking for concerning trendlines in Thomas Demark's book, "The New Science of Technical Analysis," it will really change the way you understand trendlines and I'm sure it will be profitable for you.

Thank you for the post, I really enjoyed reading it. I've begun to see the markets as a "Trapping Structure" perhaps that's just a different way of putting what you have posted as a "minority game". All the same I am learning to identify the trap being set by the hunters out there, it's enjoyable to see that their actions are repetitive even if the market isn't.

Would I be correct if I said that the basis of this type of trading is identifying momentum through order flow (commercial activity) and that in reality it leaves you not believing in any type of market structure. And if this is true, what context are you left to trade with other than searching for opposing momentum at which point you exit the trade. I'm not trying to put it down, but to understand in simple terms what it is you are doing. Do you believe in any type of market structure/context other than uncovering an orderflow imbalance, which aids you in selecting your trades?

I think the questions which I have for you may be too simplistic but if you could answer it I could more easily understand your writings. How do you physically identify support or resistance in the now, via your market understanding. Or do you look to identify either? Do you believe in or trade based upon a perception of value at all? Thanks in advance.

Thanks for posting, there are elements of how you are trading that I really enjoy.

Thanks for the call UB it helped me to see where the road was and what the next step is. You're the most public provider of in the now information concerning price movement. Thanks again.

Again we are having misunderstandings with regards to terminology. You misunderstand what I mean by structure, it certainly is not simply and I quote "value = structure", there is far more to the market then simply value as I'm sure you'd agree. I've said before that if you would only post your said illustrations and your promised presentation than we can possibly understand each other. I'm looking forward to your presentation. Moderated Message: Moderated Message:

Answers are easy to find, it's the right questions that are hard to come by. Once you've figured out the right question finding the answer is just a matter of time. Figuring out the right philosophy before applying yourself to study is incredibly important or you'll just burn yourself out over a period of time, continually and aggressively going in the wrong direction. It was Tom Alexander who said that more time applied to studying the market in an out of context way leads you to nothing and gets you no further ahead. MP helped me to begin seeing the markets horizontally no longer relying on trend or simply a vertical understanding of the market, for that alone I'm appreciative, but does it really give structure. At this point if I could have an audience with UB I'm not sure if I'd have the right questions to ask or not. But I think it might be concerning market structure. Has he abandoned the idea that the market has structure as MP told us it did in the past, does he simply believe in the dynamic uncovering of commercial trade and does that itself prove the "now" of market structure.