Wednesday, 1 June 2011

The Power of 10 Sec and the MOST Important 1 Sec simple Question!!!!

Today I'd like to share something very important.

Its the 10seconds rule and a simple 1 sec question.

It would sound bizarre but honestly speaking, the difference between a successful trader and otherwise is
the ability to utilise 10seconds of your life effectively by asking a question that takes only 1 sec.

Whether its daily chart or all the way down to a 1 Minute chart,

10 Seconds is all it takes to get answer to a question that takes only 1 second. 

Ok here is the Question.

Is this a setup? 

Give your mind 1 second to ask the question and another 10 seconds to create/provide the answer.
If you get a Yes, Do not waste a single second. Put a pending.

If you fail to do this over and over you might hear yourself say/utter the dreaded "woulda, couda, shoulda" all the time.

The thing that all traders, who know about this secret, dread the most, is Procrastination. We all know that this dis-ease can destroy anybody's chances of success.

The elixir to cure the venom of the snake bite called procrastination, also known as an act of  refusing to take action in the moment that we call "Opportunity is Now-here" is to apply the 10 sec rule.

apply the 10 sec rule and see how it would change your trading overnight. 10 sec and boom you're gone.

Now if you dont know how to know its a setup please read the tabs above. but in short you ought to understand the 3 simple setup rules explained in the tabs above. Once you know them and understand how to apply them your trading will be a 10 sec game on any time frame.
(Psst: that's why I trade the m1, there is no difference between time frames apart from the %age effect of spread proportional) 

and finally an example.



Understanding Setup 2
In the picture the first and 2nd entries were both Setup 2 examples. Thats is because the Alligator had opened to the downside. Trend was confirmed. If the first fractal was too far from red line we will not take the trade. But here it was not too far from alligators mouth so risk was low.
Also the third entry from the left was way too late. If I had not entered twice already note that I will never take this trade on its own. So its the power of adding on tha helps me be more aggressive. Since I was already nicely in profit I could risk another small positions but on its own without 2 entries no no no.

5 comments:

  1. Please comment and share your thoughts... I'd love to hear what you think! cheers

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  2. You are right,but could you pls share the idea about how you overcome fear in trading, i loose quite some money, but since then i kind of hold back. my live acc too suffer. when am still learning i make lot of money, but now that i know a lot, the money did not show up. any responce imran

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  3. 95% of trading is mental, which means fear and dealing with fear is a large portion of the mind side of trading. many of us ignore this over and over. that includes me too. We need to work on our mind to be successful. I'm going to write something about it. and hopefully suggest some really good techniques that has helped me over come the fear of trading. but its always there i can tell you that much. you cannot get rid of it you can tame it and learn to cope with it. others would also say to get rid of fear all together is also counter productive. But living in fear, that is accepting it, is not the way any human being should live. our purpose of this life is to achieve a state of joy. We must do everything it takes to keep us in the state of Joy, empowerment, freedom and love. and all we have to do to achieve that is start from the core of ourselves. the inner part of us, what some call the higher self, or the soul or the source energy. this is a very interesting and very very important topic. I thank you for bringing this up.

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  4. I think this is a great rule but I watch 20+ charts in the daily timeframe(Futures). These days with everything very corelated, I find my setups come in batches of 3-5 trades at a time. Its too much risk to go for all or even more than 1 assuming 1% account risk. This then begs the question..... which one, and then if that trade fails and all the rest take off I have to deal with the mental aspects. I have slowly gone from 28 to 20 charts and I am now thinking of going down to even less, ie 2 from each group, currencies, grains , etc. Thoughts? And thanks again for the great write ups and a place to express ourselves!
    GreenRiverJohn

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  5. The topic of correlation is important when it comes to trading all the pairs and/or trading correlated commodities as well. I dont have a huge knowledge in this field but logically highly correlated markets require certain set strategy. e.g. whether take all the signals or if not how to tackle the dilemma of choosing which one to trade. I agree with you that Less if often more. e.g. I would strongly recommend not to trade more than one pair if trading m5/m1 strategy. there just isnt enough time for it. but if trading m5 only 3 is the max number. My fav combination for forex 3 pairs on m5 is EJ, EU and GU. My observation is that when these pairs trade in the same direction it usually trades very well. IMHO.

    thanks for your insight.

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