Goslin over certain periods of time. Cynics like myself might wonder why there are no figures given for more up to date periods? Click to expand I guess he did not feel the need to give recent figures.
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Likes Hello, My name is Ashan and this is will be a snippet of my daily trading journal, mainly the trades I make and why. Having a professional to guide me is what allowed me to grow my account very fast. Chick stopped his letter In early March. However I will not let it be that way forever.
I devote a lot of time to reading the markets and writing in my journal each day. I use some very bare bones technical indicators. This method is highly subjective. No black boxing here, it requires a brain to analyze what the indicators are saying.
I have 3 primary technical indicators I use: The TL or trend line, which is a simple 10 week moving average 49 days to be exact, 49 vs 50 is not that significant and is more of a customary thing I got from my mentor than anything else The trend line gives me the overall direction of the market. The SL or short line. This line take the last 3 days of price average and compares it against the last 10 day average of price.
If the 3 day average is higher, the line will be somewhere above 0 depending on the magnitude of the difference Vice versa if the 10 day average is higher. This is used to get an idea of short term price flow. The ML, or middle line. This is a 16 day average of the SL. By averaging the short term price indicator we get a reasonable indicator or intermediate term price flow in this setup, the flow of price over a couple weeks or so All the lines are imperfect indicators which are reasonably reliable, as Chick Goslin says, but far from perfect.
Because of this a margin of error is used on each one. I could rewrite Chicks entire book explaining the decision making process for entering a trade, but the basic idea is this: Trend is the strongest indicator especially when steeply up or down. Intermediate term pressure as seen through the ML is the second most important, with short term pressure being the least important.
Timing moves is much easier said than done. The market is a clever beast and likes to make spotting a pattern as difficult as possible. MY APPROACH Trade the markets as best as I can by using and anticipating my technical indicators which are merely indicators of price action over different spans of time Any other indicator is acceptable to use, but must be weighted correctly in how much of a factor it is in the decision making process.
I follow several market groups: Stocks, financials, currencies, energies, metals, grains, and softs. About 20 markets total, although most markets are just variations of others in their group. Trade on as little emotion as possible. Not doing much intraday trading helps enormously with this. I also only check my balance about every 2 weeks. Be meager with withdrawals. Live like a broke shmoe until I hit my financial goal.
Real estate investment is my end goal. I do want complete financial freedom, the ability to do as I please with my time. Ask any questions and I will answer. Of course any feedback is welcome, though I do try to watch out for what information I consider and what I have to filter to avoid analysis paralysis.
Trading Day By Day & Code
Likes Hello, My name is Ashan and this is will be a snippet of my daily trading journal, mainly the trades I make and why. Having a professional to guide me is what allowed me to grow my account very fast. Chick stopped his letter In early March. However I will not let it be that way forever. I devote a lot of time to reading the markets and writing in my journal each day.
"Trading Day by Day" by Chick Goslin