Hello all!
On the pages below you will find a journal of mine as I work towards being a consistently profitable, full time financier of the financial markets. My aim is to put an entry in this journal at least once a week as I chronicle my journey, my thoughts, my feelings, my success and my failures. Should be an interesting ride....
I will detail my method/strategy (whatever you want to call it) in the following post or two.
Just as an intro though (and harkening to the title of this thread) my method is based on trading the relationship that exists between the overall sentiment of market participants (as a whole) and the underlying reality that is behind that sentiment. This relationship can take many forms but there are three main types of relationships that I look for and anticipate and the, subsequently, test and take advantage of in the markets. These three types are: (1) when overall sentiment goes inline with the underlying reality; (2) when the overall sentiment goes against overall reality; and (3) when overall sentiment helps to create the underlying reality, creating a vicious cycle/trend that continues to feed itself. So I look for and anticipate these three types of relationships and basically I trade inline with whatever relationship is present and then I go the other way at the right times (when these relationships break or change).
I will detail more about what this looks like in the following posts and as I journal but this is my method in a nutshell....a method I have had for a while now but have only recently figured out how to put into practice. Kinda like I've had the understanding of what I was looking for just didn't know how to look for it...I guess.
Anyway....hope you enjoy the journal. Ask, comment...just be nice about it :becky: