I have received a message from a reader of my post. He (she) stated that he (or she) had lost money, following my posts. Furthermore, he (she) added that I ought to stop posting.
On the first look at the message, it was disturbing and painful to read that someone had lost money.
Then you step back and see, what was that person was saying.
I had never asked to loose your common sense of trading. As a matter of fact, I had written two posts and explained my style of trading, go (click) here and (click) here, to read it again. If one follows my trading plan, as I had explained, then not only the risk is limited, but the rewards are extra-ordinary. I understand from my own experience of thousands of trades (if not millions), that following the trading plan, is the key to the ultimate success in the trading.
Now let's look at my recent forecast of GOOG, posted yesterday.(click) Here is the chart again, where it stated, that "failure of this level, shall mean much lower prices for GOOG." What my reader would have read is the complete statement, not just the later part of the forecast, i.e., "much lower prices for GOOG" Actually, we all have our own filters, that we use in our daily life (including trading) we hear and see what we want to, and filter the rest out. Now back to the GOOG forecast, if one had followed my trading plan, "failure of this level" would require that next day bar must exceed 70% of yesterday's bar to the downside.
Did one wait for CONFIRMATION?
If you did not, then who is to blame, the forecast or the your habit of over-trading and jumping to gun to enter the trade and not wait for confirmation. Whether my forecast or anyone's else, you follow, you are destined to loose money, if you JUST WANT TO TRADE, and not follow the trading plan.
I also had stated in my previous several posts, that when one pattern fails to do, what it is supposed to do, then opposite is true with the similar strength. Again GOOG trade, today price action was the key day to enter trade, short or long, after waiting for the confirmation of the bar exceeding 70% of the previous bar. When it exceeded the previous bar, by 70% in the opposite direction, then you knew that previous expected pattern was violated (and you are still not in the trade, yet) and you shall look for some other guideline, for example, the one posted by me, earlier. (click) Here is what I posted a forecast for GOOG higher price level beyond yesterday level. This forecast, achieved its first target yesterday or Monday and today, the second target price target was achieved.
Did you notice on the forecast the time cycles coming in for AAPL? If you had watched that on hourly chart, you would have traded and made money on AAPL as well. It stated 07/23 and 07/27 important for AAPL.
As a human being, we (including myself) are ungrateful creatures. We are ungrateful to Our Creator and also to others around us. We exhibit this ungrateful behavior pattern in our daily life (thus including trading). We would risk our beautiful relationship, just because one person said or did something that we did not like, and we would forget that person has done so much for us, has given us so much love in our relationship. Just based upon one thing, we would loose our mind and loose our precious friendship, and relationships, which we built over so many years. I am guilty of that, and if you look inside you, so are you!
Now did anyone trade RIMM alert, posted yesterday? It should have doubled your money, if you entered, since my entry of trade. My trade has doubled since yesterday.
