A successful trade requires one thing and one thing only, price action working in favor of the trade.
Many names and labels are given to different types of trading, despite the sole requirement of the trade being exactly the same.
Even many more names and labels are given to the various chart patterns and formations which ultimately culminate in the purest form of action- the trend.
Trends are in everything, and are everywhere. Trends determine our thought processes, and our very relationships with the world.
No matter the news, opinion, research, or even that shooting red dragon doji setup on the chart, it’s only as good as its trend.
In this game, you must use any tool available to gain an edge. As with everything, you must maintain a balance, so that you can see reality for what it is.
What I do is in no way shape or form what you must do. I simply do what works for me, as simply as possible.
When looking into the technical aspects of a play, I believe it’s always best to start from the outside in. I’m looking at charts from monthly, weekly, and then daily perspectives, in that order.
I think of charting the same way as those “finish the sequence” games we used to play as kids, except instead of finish the sequence, it’s finish the trend.
At the end of the day, all we’re really trying to do, is learn the past’s movements well enough to be on the right side of the future’s.
When we take the opposite approach, and look from the inside out, or play smaller timeframes, what we are essentially doing, is limiting the amount of sequential history we can see. If history has taught me anything, it’s that the easier you make it for yourself to be fooled, the more fooled you will be.
When it comes down to it, the chart is the plan. It is the best representation of price movement that we know of to date. If only we could chart our lives the way we do stocks. Unfortunately there are many more factors than price action that determines human value, but we can use the market’s simplicity in this area to our advantage.
When a plan is set forth using charts, confluence between timeframes is crucial, as the gameplan must be clear and simple. However, as we noted earlier, the smaller the timeframe, the easier it is to be fooled. Syncing up your “patience” with your timeframe is one of the most difficult, and most important parts of successful trading.
I began investing in the market as another way to make money, and realized that I had stumbled onto a whole new world. I quickly figured out that there was much more to this game than simply believing in a particular stock. I created a criteria based system where I flipped the script on its head, and instead of looking for reasons to buy a stock like many traders, I look for reasons not to buy.
There are hundreds of hidden gems out there. It’s my job to discover & track them.
The Terminal Strength Grade system was created to factor in the most important and proven intermediate term technical and fundamental criteria, allowing for ideal risk mitigation, providing a simple, and safe trading system unlike any other in the game.