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Episode 2 – How to Overcome the Emotions of Greed and Fear
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There is no time for fear and greed when one is a gunslinger in the intra-day indices market. I have been a dirt bike racer for 30 plus years. Races are won by maintaining a higher corner speed then your competitors. Stay on the gas longer and get on the brakes later, (stay in the trade longer), get back on the gas sooner, (reverse the trade sooner).
I use E-wave, Fibs, MACD crossover, Volume and reverse inside bars to anticipate, (see the blind corner approaching), and to set my target and stop loss. And I use a 3 bar breakout, reverse inside bar, Fibs and E-wave to determine my entry point, target and stop loss. When riding at this level one will crash occasionally, just like one will have a losing trade occasionally, eh?
When trading from a 1 min chart and monitoring a 3 min, 5 min and a 20 second chart, there is no time left to experience fear and greed. I am far too busy looking ahead and dealing with the instant realities I can clearly see coming at me, eh? Money management is built in, don’t you know?
I only trade NQ (the most volatility) on eSignal charts, with a three-monitor system, which provide audio and visual alerts to me so I do not miss anything that is important to me.
I have been told this is momentum trading, however I think I have taken it to the next level and I call it velocity trading. In any case, it suits my trading DNA (my racer point of view) and I am a happy trader.
I began trading in 2001 with a $5000 account. I have never added to this account and I have been trading 200 contracts per trade for several years, which provides me with more money than I can reasonably spend. I usually only trade on Monday, Tuesday and Wednesday and I usually quit around noon on Wednesday. I travel a lot and the RV has a $7000 dish antenna, which provides me with high-speed Internet access most anywhere I am.
I cashed out of five different 401K accounts with 10% stop losses at the top of the Tech bubble and never bought another stock. Trading stocks, or even trading longer terms is a loosing game IMHO. But what do I know, eh? In any case, if you want to learn how to trade, how to use indicators, paper trade the NQ on the 1 min chart until you never have a loosing day, then you know how to trade. Then trade it with real money until you never have a loosing day, as a final exam, eh? That would be the best $5000 investment you could ever make for yourself.
I agree with everything I have read from Manny, so pay attention to him, and get busy developing and testing a trading system that fits your own trading DNA. Very few traders are motorcycle racers at heart, so your system will most likely not be much like mine, eh?
Good trading to you.
Thanks for this. It is smart to let your orders do the work for you. Sometime I get stopped out unecessarily, but I am always thankful that I have my capital to trade another day.