Firstly trade what you see and not what you think.
That is the most important start to how you gonna select a trade opportunity?
Because depending on your mindset when you sit down to trade and how present you are you are likely to be projecting your beliefs on to the market and seeing what you think!
If you are not focused with a high level of self awareness
you’re gonna be projecting a whole set of beliefs onto the
Then you’ll be trading what you think we see rather than what you see.
One of the things that I say to my clients in the Tribe is simultaneously assimilate what the market is telling you.
Don’t try and curve fit your strategy.
Whatever the strategy is that you’re trading, do not try and curve your strategy to the market.
So, in other words, of one of the ways in which people do that is they think they see a set up for their strategy in the market.
And then they will look for evidence to support that.
One of the ways in which they look for evidence to support that is using indicators and levels and a whole lot of different elements like trendlines, different time frames and correlations all of which are there to try and prove to them that what they’re seeing in the market is actually what they’re seeing.
All right, now, here’s the thing. If you’re seeing what the market is telling you, you don’t need any evidence because you will be seeing what the market’s telling you.
You will trust it!
That is why I am absolutely totally against using three, four or five different sets of indicators to support what the market is telling you.
You might use oscillators, RSI, timeframe correlation, levels and trendlines and all these to try and support what you are seeing in the market, to prove that you are right.
When you are when you strip all that back, take all that out. and be okay with not knowing, Not knowing what you see.
Be Okay. Be really OK with that.
It’s hard for us too, because we, we have this predator, prey, fight, flight ego in our head, the amygdala that needs to be right.
It’s hard to strip all that back.
And when you sit down to the charts and say to yourself, it’s okay that I don’t know what what the market is doing.
When you strip all that back and sit down and then in a way you are just leaving yourself open to allowing a market to tell you what it’s doing.
The market tells a story you could read the charts, like reading a novel.
It’s like, seriously like reading a novel.
Observe the chart and allow it to tell you a story.
When you’re doing that, you are receiving the information that the chart is telling you. and then that process you then assimilate.
If you try and curve fit – you will lose trades over and over again!
It’s so so important to be mindful of the state when you’re going to trade, because the more in which you are centered, focused, self aware of what is going on for you in that moment the more you will be open to receiving the information from the market rather than judging it
So if you are in a desperate state or a stress state or are you in an inspired state?
In desperate, fear or stressed states, you are likely to see in the market is scarcity.
All those lower vibrational emotional states will result in your being contracted and judgmental rather than SEEING what the market is ACTUALLY DOING!
So you’re not gonna trust yourself to be seeing the market as it is, and that is why you need tons of supporting ‘evidence’.
Whereas if you sit down to the market, to trade and you’re
you’ve got an open heart of gratitude.
You were feeling inspired. You know that you are expansive,
and in that state you are likely to be open to receiving the
information from the market, rather than judging it.
You will be inspired by what comes back. you will not be
desperate, and you certainly won’t be feeling any fear.
And this is why it’s very important to be self aware enough to know your state to be trade ready and to know when you are trade ready and when you’re not,
If you are in an inspired state, you’re gonna be okay with the chart telling you – Hey, there’s nothing to trade here, and you’ll be okay to walk away.
But if you were in a lower vibrational states, like stressed or angry or fearful whatever it is.. whenever you are in that contracted state, you tend to want to be in the market because you’re gonna want to prove you’re right, you may want make money, you’re gonna want to get back at the market or you want to get the thrill of being in a trade. Whatever it is, you will most likely have all the wrong reasons to be in a trade.
And that is why it’s a perpetuating cycle that so many people get into.
You need to pull the handbrake up, get off the train and take a look at the state you were in when you go to trade.
When you know that when you sit down and you’re feeling inspired your feeling grateful you’re feeling what I call heart centred – You’re open to connect into the market, allowing it to tell you what it’s doing, allowing it to tell you the story that it is telling and for you then to simultaneously assimilate all the information it is telling you.
If your strategy required Bollinger bands or moving averages.
Great, that’s fine.
Okay, as that is what your strategy is based on.
But don’t try and then have the rules of your strategy, which may be based on one or two indicators and then try and prove that it is so by adding in a whole lot of different indicators to try and prove what you are saying.
It’s very different.
A very different use of indicators because, there two ways in which you use indicators to support what you’re seeing or to support what the market is telling you.
One is the indicators you require and form the basic principles of your strategy.
Obviously the less the better, the simpler your strategy is, the more profitable it will be hands – down every time.
Without a doubt, the simpler the better.
The other use of indicators, is you will use different indicators to support what you are seeing to try and see confluence, so you’re possibly trying five or six indicators to prove what you are seeing.
Here’s the thing. Most likely you won’t use the same ones every time.
So what you’re doing is you’re changing the fundamental belief structure that has been untested with your strategy
Your strategy is based on a set of a set of rules, which potentially uses one or two indicators that has been well tested. Well proven, well back tested and got a high probability of success.
If it’s like Pogo or Bugsy in the Tribe it will be. They most definitely has a high probability of success, back tested, based on the fact that if price bounces or momentum’s off the EMA, exponential moving averages – That’s the set of beliefs that is that those strategies are based on.
But if you’re adding in random indicators or looking for support from other different types of indicators, my question to you is 1, Are you consistent to them? 2 Why using them?
And not just trusting what the market is telling you rather than needing outside, confirmation.
Trading is not about trading from the head is about trading from the heart.
A lot of people find that a little odd, but when you’re in the Tribe, you absolutely 100% get it.
Because we in the Tribe of Traders, that’s how we roll.
We trade from our heart center.
We don’t trade from our head because in our head we need to be right.
That’s the way we are as human beings… That’s the way we’re born, the way we’re made.
We don’t need to be right in our heart. We just need the truth.
There is no right and wrong.
There is only what there is in our hearts.
We don’t need to apply a meaning to anything.
We don’t need an answer. We just received the information as it is,
No judgement necessary in the heart.
In the head there is always judgement.
Okay, so in the heart, when we’re looking at charts and we’re being open to receiving what the information we are being told by the charts we receive it from, from a place of our heart.
There’s no judgement. That is where we will be inspired.
When you do that, you don’t have any fear.
There’s no fear coming from the heart. You don’t need proof.
You don’t need evidence.
You just respond intuitively.
And you trade in that intuitive space,
Not fear based. Very big difference when you do that.
You’re not attached to the outcome. Your not attached to the desperation we feel, is this trade going to win or it is going to lose. There’s none of that noise.
And in that space is where you start getting consistent profitability.
And that’s why we’re profitable.
And that’s why we trade in a different way in the Tribe of Traders.