|
Quote: |
|
 |
|
|
RULE #1: Learn to use inaction as a weapon.
Most of the time, the market is indeed random. One can only win consistently by avoiding activity most of the time and trading only the few times during the day when a high probability trade occurs. It is our job as traders to wait more than we trade. |
|
|
|
|
First, very nice thread. Thank you.
Second, I am a bit hesitant to post because I do not want to disrupt the flow. Please let me know if you would rather not have posts such as this.
I recently posted a chart in the
VSA thread that has some applications in my mind to what has been said here.
Many traders, both VSAers and others, are trying to catch tops and bottoms. There is a desire to buy bottoms and seller tops. I think this is a mistake. In the chart the best entry is after the appearance of the second test (from left to right). While it is true that many methods would show other and sooner entry points, with INACTION one is able to enter at the most PROBABLE point. In other words, the "Best" price does not necessarily mean the most probable entry price.
One can let the market tip its hand. As someone here once said, surrendering to the market is about letting go. It is about NOT forcing the issue. It is about inaction. Getting in tune with the market is about detaching oneself from the market to clearly see it.
Often probability and inaction lead to profitability without the ego of top and bottom fishing.