First, I thank you and appreciate your interventions on Twitter and these articles. Coincidentally I have been thinking all these days that the learning method, at least in my case, should have as an initial part the deep study of large movements in charts in an exploratory way and then just define what type of setups I am interested in specializing in those movements. And just based on that, everything related to risk management and others. The point is that in this article you propose to start the study of graphics once you have already developed an edge and you know the setups you will focus. My request then, when you have time, and if you don't mind is what in your opinion are the steps to develop an edge that is a step prior to specializing in it. Thank you so much.
Great question Sebastian and thank you for bringing it up!
In my eyes the best way to come up with an idea for an edge is studying the common patterns that winning charts show. For example, I've recently noticed that a bunch of the winning charts off the bottom of this bear market have held the 10EMA on pullbacks. This was the initial idea I wanted to study.
I've now collected 100+ examples, marked them up, and have started to implement trading with small % and see how it goes.
Thanks Greg based on what you said I started reading charts Bill O'Neil marked up. It was chrysler 1963. In the summer it pulled back 20% and was sold. One month later it was higher and he indicated buy. What is the mindset that that logically allows you to do that? Take a big gain 20% off its high and then come right back in and buy at a new high price?
Yeah even that is nearly impossible for me - based on my study of WON, he had a knack to be able to always buy back based on what price was doing in the current moment, not what had happened prior.
Think there's a lesson for all of us in that wisdom but it's definitely harder to implement in practice than in theory.
Hi Greg, thank you for the email course announcement first. I am a newbie. And would like to master HVE, and HVEIPO. You mentioned about go and look 1000 examples, do you go one by one or is there an easy way to find the. Please guide, no idea about back testing. Thank you
First, I thank you and appreciate your interventions on Twitter and these articles. Coincidentally I have been thinking all these days that the learning method, at least in my case, should have as an initial part the deep study of large movements in charts in an exploratory way and then just define what type of setups I am interested in specializing in those movements. And just based on that, everything related to risk management and others. The point is that in this article you propose to start the study of graphics once you have already developed an edge and you know the setups you will focus. My request then, when you have time, and if you don't mind is what in your opinion are the steps to develop an edge that is a step prior to specializing in it. Thank you so much.
Great question Sebastian and thank you for bringing it up!
In my eyes the best way to come up with an idea for an edge is studying the common patterns that winning charts show. For example, I've recently noticed that a bunch of the winning charts off the bottom of this bear market have held the 10EMA on pullbacks. This was the initial idea I wanted to study.
I've now collected 100+ examples, marked them up, and have started to implement trading with small % and see how it goes.
I hope that answers your question.
Thanks Greg based on what you said I started reading charts Bill O'Neil marked up. It was chrysler 1963. In the summer it pulled back 20% and was sold. One month later it was higher and he indicated buy. What is the mindset that that logically allows you to do that? Take a big gain 20% off its high and then come right back in and buy at a new high price?
Yeah even that is nearly impossible for me - based on my study of WON, he had a knack to be able to always buy back based on what price was doing in the current moment, not what had happened prior.
Think there's a lesson for all of us in that wisdom but it's definitely harder to implement in practice than in theory.
Hi Greg, thank you for the email course announcement first. I am a newbie. And would like to master HVE, and HVEIPO. You mentioned about go and look 1000 examples, do you go one by one or is there an easy way to find the. Please guide, no idea about back testing. Thank you
I will send out a ton of examples in a guide later this week (it will be with the email course)