The true power of MTPredictor

Hi everybody,.

I have saved the best for last today, and this shows the true power of the modules and routines in MTPredictor. This is for the Advanced Traders among you who have taken the time and made the effort to learn about Elliott Wave and learn all of the techniques I teach and then taken the time to be able to put them all together as and when the ideal pattern unfolds.

Yes this does involve a “manual” EW count and “manual” use of the WPT module, but nailing the exact high of the day for +9R Profit is what MTP can do. But only for those of you who take the time, make the effort to study and learn. I will not kid you, this does take time and effort, but this is the reward. It is just a pity that so few traders nowadays are willing to work hard, most want a “quick fix” for little or no effort. That is why spectacular trades like this will remain for the few professionals who take years to study an learn. Being a good trader is a full time profession, and professions take time (years) to learn, practice and then become good.............

Thanks

Steve

5 min Russell

Hi everybody,.

It was not all doom and gloom yesterday there were some nice trades, for example this TS3 buy on the 5min Russell that went to the DP nicely. Notice how I have used the high volume spike to protect profits on this long trade. The Advanced Traders among you will have also know some other markets (15min ES) were entering larger degree resistance zones, so protecting profits would have been a sensible course of action.

Again, this is where the markets are different on different days because we have had a few good days so you should know that a few harder days are approaching, so getting more aggressive with protecting profits is a good idea. A PC or automated strategy could never have this level of understanding

Thanks

Steve

Trading – the real world

I know a lot of the new traders among you struggle with this and I think the main reason is that there is so much miss information banded about on the Internet by companies who are not real traders. So most amateurs simply do not understand how markets unfold in the real world.

Bottom line, trading is hard. Not because of the techniques we have to learn (these are relatively easy), but it is the psychological toll that learning to trade takes out on us. The markets are no liner, they are driven by emotion, hope fear and greed. These emotions cannot be quantified and put into boxes by mathematical formulas. This is why computers struggle so much and why most so called “strategys and mechanical systems” do not work in the real –world, because the markets are forever changing.

So what hope is there for us ?

What we have to keep in mind, is why we trade, the make money and NOT to predict (or even understand) or try and control the markets. To do this we must keep the losses small and profits large,. It is as simple as that. Too many amateurs try and “understand” and rationalize” the markets in an effort to put them into a psychological structure that we as human beings can understand. But this will never work, because, as already said, markets are based on emotion, and not logic.

So we have to learn how to operate in a non linear environment where the rules can change under us. This is the true challenge of becoming a good trader, learning how to deal with uncertainties and thinking in probabilities and not 100% certain rules. I guess that is why 97% of amateurs traders never make it and end up losing.

This is why I spend so much time and effort in helping you all understands how the real world works, at least then you have a basis to move forward and learn.

Thanks

Steve

ES – larger degree trend part 2

OK, let’s move down to the 3min ES chart. And on the surface it was an easier day where the TS4 buy early in the day was up “in the direction” of the 15min Chart as it was rallying into the 15min DP so was a good one to take.

But the question comes on the two trades that unfolded “after” the 15min Chart had hit the DP and started to reverse. These were now “against” the new 15min down trend. So what should you do.

On the surface the easier thing is to just pass on these. BUT for the Advanced Traders among you, you can consider taking them but just moving your stop to break-even quicker, for example, using the 100% initial risk level. This protects you quicker and in this example would have avoided two losing trades with two break-even trades.

The 100% initial risk level is a good one to use when the pattern is less clear. For example on the nice TS3 sell on Wednesday in the 3min ES. Again, it makes sense to protect yourself quicker when the larger degree pattern is against you or (more often) is less than clear.

Thanks

Steve

ES – larger degree trend

Hi Everybody

Today I would like to have another look at how to use the larger degree trend, as I know this an area many of you struggle with.

But before I start I want to stress again that trading is not the same each day, some days the picture can be clear, and the decisions are easier, but other days the picture can be confusing and the decisions harder. This is what makes learning to become a good trader hard. I think this is what most amateurs find hard in that you have to accept that sometimes you can do the same thing on 2 days and have different outcomes, The markets are not logical, they are driven by emotions, so do not operate by our normal 2+2=4 set of rules. So learning to operate in a no-linear environment where the rules can change is part of the challenge of becoming a good trader.....

Anyway, let’s start with a look at the 15min ES yesterday, as you can see, this was a nice clear day with the 15min ES going up into the DP then reversing nicely.

So yesterday was easy, the 15min trend was up into the DP then down after it............ so how does that reflect trade decisions on the 3 and 5min charts

Thanks

Steve