The 3Dimensional Trading Breakthrough

The 3 Dimensional Trading Breakthrough
take the approach of waiting to see “what will happen tomorrow.” You will act and
react when the market tells you so. You see, the market makes these decisions
and you are just there to execute the trades accordingly! Do not second-guess the
market. The market will always be right in the end.
“Act as if it were impossible to fail.”
– Dorthea Broude
Sticking to the plan is the blueprint of any and all professional traders. This is a
basic plan presented to you. From this point on, when you start tracking markets
on your own, you will be able to find the unique “personalities” of individual
markets. They are not all the same.
You will find certain characteristics of markets that appeal to you and you will
be able to take this plan and build around your market. Remember, all our job
and responsibility really comes down to is anticipating the proper sequence of
managing the trade. Specifically, to identify the first opportunity to hedge your
position should the market shift momentum against you. It does not matter if you
are long or short a position, the DSO will be the first price to use as a reference,
just like the traders on the floor.
Trading can be a difficult and somewhat tedious task for most traders starting out
in this business. This is simply because they don’t have a set plan to follow, nor do
they necessarily know how to “read the market” by following the natural cycles
or rhythm of the market’s momentum accordingly. This method of trading should
eliminate 85% to 95% of the time spent idly studying the markets for tomorrow’s
direction. The bottom line is price, right? This is how I let the market tell me what
it wants to do on a day-by-day basis. If I get stopped out prematurely, I will always
have another point of entry even for that same day if need be (which will be on the
other side of the DSO!). The “seat-of-the-pants” trading that you and I have both
experienced should now begin to be an event of the past. Of course, the bottom
line is profits in the end, and profits are not realized until a position is closed out.
The next part of this section, we will examine the various ways to correctly offset
positions as the last part of our overall methodology and trading plan.
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