When it’s time to cancel your subscription for a trading room
Why would you subscribe to a trading room? Because you get tired of sub par results. You finally get so tired of endless failures so you can finally acknowledge you are not going to make it on your own. In the article share a short list of things I personally hate in the way how hosts of those trading rooms treate their subscribers:
Is the “subjectivity” completely removed by the Harmonic Elliot Wave system? Is it clear and completely rule based?
No, I would lie to you if I said that. Even an experienced analyst makes mistake from time to time. In many cases two experienced analysts see two or even more different scenarios. Let me explain you why that happens. The real problem is not that the rules are vague or numerous. The real issue is that some moves are naturally better predictable than others.
Let me tell you a story about two traders, John and David. Both trade using wave analysis. But John practices the original Elliott Wave theory while David lost faith in the traditional approach and switched to the modified version. In this story we will be watching how each trader treats every single move in the market. For simplicity let’s assume that we are dealing with a new trending move up that is starting after a large corrective move down. So the story begins when the market has just made the first move up off a major low.
“The Harmonic Elliott Wave theory” is not something completely new because that modified version acknowledged that the classic five wave fractal is the backbone of any trending move either up or down. Moreover, the modified version did not propose any change to classifications and rules with respect to corrective waves 2 and 4 as originally proposed by R.N.Elliot, the founding father of the Wave Principle. However, that small change in subdivision of impulsive waves 1, 3 and 5 consequently increased number of waves in direction of the main trend…
The Elliott Wave theory was supposed to make trading and investing as easy as counting from one to five! Indeed, you sell when you can count five micro waves up and you buy again at lower price when you get an a-b-c shaped corrective move down! The same set of riles can be applied to price charts of any time frame, from 5 min to a monthly one. What could have been easier?
It seems like pretty soon Elliott realized that the five wave fractal could not explain every trending price move either up or down. The five wave fractal was simply too perfect to be found in every market and any time frame.
Are you one of those thousands of amateurs who want to quit their jobs to trade for a living? Let me ask you why. Why that idea is so appealing and resonate with you?
Let me guess. Most likely you think “independence”. That means no more stupid boss and no more boring tasks assigned by some selfish asshole who makes five times more for doing nothing. The idea of getting rid of a guy who makes your life miserable can’t be wrong!
Then you may say “more money”. In fact you look not for the money per se but for due acknowledgement of your efforts. Indeed you work hard and nobody gives you a credit. Read more…
The more we become proficient in some skills the less efforts we should pay to accomplish a familiar task. That is confirmed by fMRI studies described by Quinet ( 2003 ). Researchers compared overall activity in brains of college students at the time when they first approached some unfamiliar math problems with the same students after they got familiar with the task. As the students developed some skills in solving those math problems they started to do it quickly and effortlessly. They achieved some efficiency in solving that problem and active region in their brains decreased. When we achieve an expert level in any domain not only we perform better but we also spend less mental energy if to compare to novices! Read more…
Automatic reactions to threatening situation including sweaty palms, racing heart, and upset stomach is how our body makes “fight or flight” preparations. We react to any unexpected negative situation in this way because we inherited it as an involuntary survival mechanism from our prehistoric ancestors. Tens of thousands years ago any noise from outside a cave inhabited by prehistoric humans meant danger and threat to their lives. They had to get ready either to fight or run away to save their lives. Accordingly, the heart pumps faster to send more blood to arms and legs, the main tools in fighting or running, the eyes dilate for better vision and any process unrelated to fight like digestion in stomach gets temporarily turned off.
The main problem why it is so difficult to cope with emotions in trading is that our brain has not evolved much since those ancient times!
Today is the first trading day of a new 2019 year. I am sure if you one of those millions of people who started to trade stocks or crypro currencies in 2018 your main question now is how to make it work. What else should you do to start making money? You have read numerous books, watched endless youtube videos and tried following well known market gurus. And there were periods of time when you felt like you made it. Finally you got that feeling you got lucky to find a technique or a market guru that would make you a full time trader and reward you for all the efforts you had made. But that feeling turned to another period of painful losses and early optimism turned into depression and even desperation. Read more…