Although we are constantly learning, the market tells us that there are no shortcuts to achieving our ultimate goals. As a result, experience becomes our ultimate teacher and cannot be replaced. We can only choose a certain attitude towards the process of learning to trade. Either we accept the inevitable setbacks and learn from our mistakes, or we stay stubborn and are forced to repeat the same lessons again and again.
We both discovered that we weren't the only ones who made certain mistakes, and we also discovered the same secrets to success... I'll share them with you, and the most important secret is this: learn to listen to the market and don't let it One's own subjective thoughts override the market. Now that fund managers around the world are investing more energy and money in participating in and trying to dominate the market, it is difficult to imagine what advantages small speculators can have.
Has trading been transformed by the power of computers? Has the market changed in the past 10 years? How useful is trading theory in practice? A few trading tips and common sense can do much more than what you will get from all the technical analysis books. Eventually, you will find that humans are much better at judging support and resistance than computers, and that the average individual has a much greater advantage in trading than he or she thinks.
Each pattern has its own specific market conditions and we only choose the most easily identifiable and reliable patterns to trade. In order for you to better understand these patterns, you need to know the following points:
1. When you first start trading a new concept or strategy, it is very important to do simulated trading first. You will only feel comfortable observing a pattern over and over again. You have to be convinced that the pattern will repeat itself. It's no surprise that you get excited as the pattern is forming.
2. If you don’t have confidence in a pattern, don’t trade it. If you don't have 100% faith in a pattern, you won't be able to overcome a period of consecutive losses.
3. Mastering a form allows you to make a living from it. First, you need to specialize in one pattern. We know of two traders who only trade the S&P 5-minute line using the “Ant” pattern. Another trader only trades the "3 Little Indians" pattern.
4. The biggest enemy in trading is the preference for a certain direction, that is, the view of the market direction. Regardless of whether this opinion is your own, or that of your agent or a friend, put it aside! Learn to focus only on the "right side" of the chart - in other words, only on the current pattern.
5. One thing you have to learn is to continuously improve your ability to listen to the market. Even if the content in a particular chapter doesn't fit your trading style, it can at least improve your understanding of market behavior and price changes.