In my last post we started looking at using technical analysis to identify 1-2-3 trading patterns in up trending and down trending markets.
In this post we are going to start reviewing how we might use these patterns to provide us with entry signals in a trading system that will allow us to trade profitably.
Readers will have noticed that the posts in this blog to date have been focussed on the trader far more than they have on trading systems. This is for a very good reason which you should all know by now. If not, please read our earlier posts.
This post however is going to introduce some technical analysis and provide some information on identifying 1-2-3 patterns on charts that will help you to trade profitably.
Understanding where you are strong means having an edge. For example, one that stands out for me is a successful options trader. Before becoming a trader he was in the navy, and one of the things you can associate with defense forces is the strict discipline they must learn. You may or may not already know that discipline is an important key in trading success; and this man turned $10000 into 1 million in 3 years!
Unfortunately, many don’t find out what their strengths and weaknesses are until well after they have taken a solid beating from the markets. An example of this is getting involved in a trading system or buying a course where the meat of the trading is discretionary, meaning you analyze and make discretionary decisions based on your analysis. There is absolutely nothing wrong with this approach if it suits you, but for many it does not. Some people need a solid set of rules that require nothing more than if A = B, then do C, and this is called mechanical trading.
If you hired a coach to help you build a trading business, and your coach asked you how much time a week could you devote to trading, what would your answer be?
Now is the heart breaker. Take your ROI% PA figure you are aiming for and write it down (if you haven’t read the previous post on determining if you need to trade, please click here and read it first). Now next to that, write down the number of hours you can allocate to trading. Now compare your results to the table below. Do they match up?
Once the decision was made to found The Elite Insiders Group; BJ Dibbins, Dean Whittington and myself (Sean Rasmussen) got into action to put this blog together along with The Elite Insiders Group membership forum. The first question we posed was of course: What are we going to do that is unique to the rest of the market?
Well, that was a good question and we put our heads together. It really didn’t take long at all to come up with the way we were going to help the average stock maket trading “beginner” to get established in their learning path to trading the market successfully.
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