Immy's Corner [The Setup The Hunt - T20's and more]

[Herbert]

Elliott Wave! Albeit short wave length this is for this current moment, that is the current time frame a completed EW.

One gotta love a well defined price structure. It put's the "o" in Chaos. Day in and day out I get views and messages and promotions from the trading world about a "new" pattern, this pattern and that pattern, this new system and that method, ad nauseum...

And all that exists in the market world and the only "pattern" that happens, is the ONE as shown here, the NEO of the trading world. It is so awesome, if you only catch part 1, you are made, but wait, theres more.....

Look at your charts up closely, look at the setup/trade you just banked the pips on.... there it is!!! ANOTHER NEO inside the setup you took. Yes, it is there....
Zoom out and see BigBrother NEO watching over it's creation...

Look at the possibly failed trade you took, there it is, it's rythm beating slower than your heart at that moment (rofl) , but it is there.... you just sidestepped it slightly....

A failed AIMS trade is a better trade than what any-one cut put on. WHY? Because you traded the "pattern" that defines all other patterns. Do not doubt it. You are in harmony with what the market wants, just practise practise practise you application, get your rythm syncronised with the market rythm, feel it, do it.

"Unfortunately, no one can be told what the Matrix is. You have to see it for yourself."

Thanks for the illustration Immy.

[immy]

Elliott Wave! Albeit short wave length this is for this current moment, that is the current time frame a completed EW.

A failed AIMS trade is a better trade than what any-one cut put on. WHY? Because you traded the "pattern" that defines all other patterns. Do not doubt it. You are in harmony with what the market wants, just practise practise practise you application, get your rythm syncronised with the market rythm, feel it, do it.

"Unfortunately, no one can be told what the Matrix is. You have to see it for yourself."

Thanks for the illustration Immy.

Well Said Herbert. If you follow the structure of the market, you are effectively in the process of "Wanting what the market wants" the holy grail. ^:)^ ^:)^

[immy]

We took a trade this Am. The alligator on M5 was open to upside albeit the Alligator on m5 was going against purple but the wave to the downside was complete so took this m1 long with caution. then exited prematurely but still 1:1 and above by my definition is not premature.

[immy]

This setup usually appears at the end of a move. I call it trading inside the M5 AIMS level.

The Following image shows how the setup looked on m5 and m1. Check hat M5 AIMS Waves was peaking but there was space more than 10pips from entry to target between the entry level and the upper aims level to the left on m1 which was aims level of M5. Grant loves trading here too.

27-04-2012 11-51-34.png

And on this chart on the m1 you can see how the 10 pip target was nicely hit and price then reversed.

27-04-2012 11-52-39.png

[tombacon89]

Immy I have a question, your first trade this morning when you took 10pips profit. I was watching the charts and drew a line 3 pips above 5min level. I measured from 3 pips above 5min (the entry point) down to the bottom of the aims box. This was more than 15pips so I didn't place an order. Am I right to include the spread + 1pip in my measuring of the aims box or just measure the aims box itself? In other words does it matter if the entry is more than 15 pips away from the opposite side of the aims box? Sorry if it seems a silly question or you have covered it in the manual. I just want to make sure I'm trading to the rules cheers Tom

[immy]

Immy I have a question, your first trade this morning when you took 10pips profit. I was watching the charts and drew a line 3 pips above 5min level. I measured from 3 pips above 5min (the entry point) down to the bottom of the aims box. This was more than 15pips so I didn't place an order. Am I right to include the spread + 1pip in my measuring of the aims box or just measure the aims box itself? In other words does it matter if the entry is more than 15 pips away from the opposite side of the aims box? Sorry if it seems a silly question or you have covered it in the manual. I just want to make sure I'm trading to the rules cheers Tom

hmmm, yes you're right slightly but the look on m5 was good. There was a freshly open alligator on m5 to the upside, after a completed sequence of AIMS Waves, i.e. Peak then cross of zero line and peak again with divergence. (btw thats Elliott wave in 10 words. ) so It was turning into my favourite settings, where m5 alligator is freshly opened and m1 is setting up. It was not the best looking Setup before it broke out I must admit, and that I have seen better, and hence my early exit (lack of confidence), of-course hindsights tells us, I could have made more. Moreover the time of the day was also good though unfortunately I heard that spain was downgraded so going long seemed a bit stupid at that time, but Chaos has its ways. The market can never be predicted. The London session was not too old into lunch time. So these things matter but with experience you do cultivate that 'feel' for the market. IN the beginning if you miss a setup or two by following strict rules, it does not matter. In fact it is very good for your longer term success.

[immy]

The Importance of Training for Peak Performance

"Nothing is more common than the notion that you learn to trade by trading. I humbly ask you that you check that premise...

"Every Performance field I have researched progresses from knowledge acquisition to skill drilling to simulated performance to real time rehearsals.

Despite this seemingly obvious truth, we see few traders attempt to learn through training. Instead, they approach trading in the amateur mode, only to lose money and court frustration."

That's not to say that traders can't learn trading through dedicated screen time. Concentrated screen time can greatly shorten a trader's learning curve.

The secret to trader's longevity as a traders: "Know when to say when". When you lose the maximum amount allotted for that day, e.g. 2% put the mouse down and call it a day. Make this your motto "Tomorrow is another day". But stay there and watch the market till the end. Nothing beats healthy chart time. That is the mind-set of a professional.

The Core trading skills boil down to pattern recognition. The trader who spends high-quality screen/chart time is more likely to internalise patterns than trader whose market contact is intermittent.

This is not the perspective that most traders possess. And yet there is no reason to trade, and they fool themselves into the notion that their trading provides learning experience. Yet we can see clearly that a novice boxer would not learn from getting in the ring with a champion.

He would get KNOCKED OUT" Brett Steenbarger

Proper Training is Trading Psychology, sustaining the mind-set as well as the skill level of the performer.

[Herbert]

Excellent post Immy!! (wd)
Herbert

[immy]

"I've never seen a trader succeed whose explicit or implicit goal was to not lose. The trader who trades to not lose is like the person who lives to avoid death: both become spiritual hypochondriacs." Brett

Never focus on killing that loser. Use your Creative side. The Right Brain. The Creative Side. Use your imagination to feed your right brain. With enough repetition it will imprint upon your subconscious. Explicit training and repetition of a deliberate thought, imagination leads to implicit learning. The State of Knowing without knowing how you know. The Zone. The ultimate Goal of all trades, peak performers.

[immy]

I thought I'll share something. I was discussing with one of our Guests.

[10:02:48] immy - AIMS: Arshed, we must take trading like any other competitive sport. We must train and the best way to train is to break down the whole in to parts. individual skills.

[10:05:08] immy - AIMS: I have it in 3 steps.
Step 1. IT, mastering MT4, (or any other platform) understand the mechanics of orders, PO, Market orders etc.
Step 2. Understand the Setup, the Entry Technique. one must master this before the next step
Step 3. Once Entries are perfected, meaning you've practices for so long that its become an automatic function for you. Akin to driving. Learn to Exit Correctly. so work on your Exits. profit taking exits and Rent Exits are quite different
Step 4. Increason your ROI (return on investment)

[10:05:42] immy - AIMS: we are still in Step 3. ( step 4 also involves mastering profit taking techniques) but it overlaps in step 3...
we are still in Step 3. ( step 4 also involves mastering profit taking techniques) but it overlaps in step 3...
[10:18:58] immy - AIMS: Make your own Trading Rules. MAke sure you include Rule for Risk Management too. e.g. Maximum loss for the day. say 2% never risk more than 1% per trade. you've gotta look at your tolerance, your account size, etc etc.
[10:19:43] immy - AIMS: Let the trading rules that we've provided be your guide. or you could adopt exactly that. remember you not expect to internalise trading rules if you have not firt made them explicit.
[10:22:03] immy - AIMS: Create a routine before trading begins to review the rules. very important. it might sound silly but you must read out aloud the rules to you.
[10:23:14] immy - AIMS: The more you think about rules and rehearse them, the more they become part of you. Repetition creates internalisation.
[10:23:36] immy - AIMS: The right trading behaviours start as rules. and Evolve into habits.
[10:24:08] immy - AIMS: create a rule to check your rule following midday and end of day.
[10:24:47] immy - AIMS: but at the same time, dont make too many rules. Dont work on too many rules at one time.
[10:25:10] immy - AIMS: start with most important rules. such as risk and money management.
[10:26:42] immy - AIMS: this rule is the most important it will keep you in the game for a long time.
[10:26:52] immy - AIMS: correct money management is the back bone of trading
[10:27:33] immy - AIMS: Entry rules: Getting good prices. dont enter too early, dont enter too late.
[10:28:05] immy - AIMS: Exit rules: set clear profit targets in the beginning. e.g use aims levels to the left.
[10:28:51] immy - AIMS: if you make a 1 page trade plan, based on these three things, Entry, Exit and MM rules, you can read it aloud everyday, write it, print it and laminate it.
[10:29:01] immy - AIMS: and I may stop my sermon now