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Trading the Jam way

  #127 (permalink)

Trading Experience: Intermediate
Platform: NinjaTrader wt Rancho Dinero's profiling tools
Broker/Data: AMP/CQG
Favorite Futures: ES, NQ, YM
trendisyourfriend's Avatar
Posts: 3,851 since Oct 2009
Thanks: 3,424 given, 4,863 received

If i were to teach someone how to trade, i would focus my efforts on two things: the importance of the process of becoming specialized in 'one thing' in regard to price action and the process of becoming a good thinker.

A good example of what i had in mind regarding specialization is in my opinion the guy who is called the Gap guy. Someone that trades the Futures markets could possibly focus on the 1 minute range and maybe add the initial balance into the mix and try to become an expert about price action around these levels. There could be the last half hour of trading which offers very good opportunities. In fact, when you focus your attention on one thing and do it with diligence then you eliminate many things which for all intent and purpose are secondary and more of a distraction than anything else. Let's consider another example which occurs frequently, price makes a high and low during the globex session (night session for someone who resides in the Eastern time zone like me). When price makes a repeated visit to these levels during the day session, how could you possibly try to profit from these significant levels ? Could you develop your bread and butter trade setup around these levels ? How should you proceed if you have no experience ? etc. That's the type of practical concerns i would try to address before making people read books or lose their time trying to talk about thousand of patterns they may encounter.

JamTheTrader View Post
So, are you saying is that you should only know one setup such as moving average crossover, and this will work if you know it well enough? What you might be forgetting is the years behind the screen it takes to develop the skills to see patterns develop to choose the best spots where that moving average crossover (example only) might actually work.

One entry might be good, b ut how do you know what market structure is telling you? when is that entry not good?

BTW, I wouldnt swallow the elephant, but instead take it in small bites

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