After many inquiries I decided to revise and update the document under the heading CROSSHAIRS TRAINING by adding more details about my methodology.
After many inquiries I decided to revise and update the document under the heading CROSSHAIRS TRAINING by adding more details about my methodology.
Let’s face it, there is absolutely no logic- if we understand logic to be just another word for common sense-in the stock market.
A stock moves in the direction of the major indices (e.g. DOW, S&P, NASDAQ, etc) or, at the very least, is supported by their momentum unless there is some corresponding news event that causes the stock to move in the opposite direction.
I have four time frames that I use when making a decision to trade: the WEEKLY “War Zone”, the DAILY “Terrain”, and two INTRADAY “Deployment” charts (89 and 144 minute). The war zone chart gives me a broad picture of what a stock is likely to do for the next several weeks to months; the terrain chart for the next several days to weeks, and the 89/144 deployment charts the next several hours to days. By “deployment” I mean the chart wherein a crosshair has formed. Obviously, the 89 and 144 minute charts are used much more frequently than the others to enter a trade due to the shorter time period but the DAILY and even the WEEKLY (though very rare) can also be used as deployment charts.
Trading, I have heard it said, is nothing more than gambling. Obviously, there is an element of risk and speculation involved but is there not a risk involved when we sit behind the wheel of our car, go boating, or climb a mountain? There is. But do we not do these things because of the risk? We prepare to meet the risk and we accept it. As a trader we meet the risk by preparing for it. If we do not prepare for it, then we are gambling. We are the mountain climber without a rope; on a boat ride without a life preserver: behind the wheel without a seatbelt.
These posts will not be a “brag” time nor will they portray my style of trading as a fail safe, get rich quick system (because it is not). There will no discussion on my percentage gains or losses, on how much money was made or lost, how many winners in a row I have had, etc. etc. because none of these things matter to you and have nothing to do with your success or failure. My trading record is worthless to another trader. What does matter is the concepts behind the CROSSHAIR and how they can be used in any style of trading, whether mine or yours or another. Get the concepts and you get the CROSSHAIR.
Traders who have no rules, only emotional inclinations, eventually write off trading as a fool’s game full of crooks, con-artists, insider trading, pump and dumpsters and chart reading hucksters. They do this because their emotions have led them astray and a scapegoat is needed, so the unsuccessful traders blame the market for what ails them. The real culprit, however, is found within. The real culprit is the trader who wants to be right and ends up on the wrong side of the trade over and over again. The trader who thinks he is smart (and right) is really stupid (and wrong).
Try to figure out all the details about the stock market. There may be no monetary benefit but the job security is guaranteed. In other words, no one would pay you since it is an impossible task to ever complete. You can ever know everything there is to know about the stock market? But you sure can know a lot about a little. Sounds really stupid does it not?
Then I look at all these sophisticated and complicated systems with their formulas and lines, green arrows, red arrows, and this and that and I think: am I missing something here? I mean, these systems are touted as having close to a 100% success rate, are presented as a cannot lose proposition, are developed by an individual who has amassed a fortune trading it year after year with phenomenal returns, yet it is so complicated and secretive you do not need to learn how to trade it just buy when green and sell when red.
