Post 12 EWU Observations from a New Student

Hi Jody,

I’m going away for a couple of days, so I thought I would send an update before I leave for a brief vacation with my wife.

My FG paper trade has worked out wonderfully so far. It has hit the first two profit targets and is close to the third, but there is a Royal Semaphore against me on the 5-minute with divergence, so there’s no telling if I’ll make it to the final target.

I also had my first demo account trade on Friday. It was a beautiful BO-3 that is very early in the new trend so the Black/Purple didn’t actually StretchAway because everything but the Yellow was below 50, but there was a Type 2 Semaphore that gave me confidence that we would move higher. It was a 4.09% gain, so I made a nice demo profit. So far, I seem to be seeing the BO-3 clearly and I have the rules totally committed to memory.

I sat down over a few days and wrote out my first draft of my Business Plan. It is interesting what such an exercise does to clarify things. Up to now, my biggest issue has been to learn the setups and define how I might trade them. I felt for awhile that I was in a sort of house of mirrors stumbling around trying to figure out the best way to move forward. But now, I’m feeling much more confident in my ability to spot setups and I think my biggest issue is going to be time management. I want to be a highly skilled trader, someday. I aspire to be one of the very best. I think I have the passion and the discipline to do that. But that’s going to take spending a lot of hours on myself and my business, and I want to limit my time to 20-25 hours per week because I have other obligations and I want to lead a balanced life.

My “profit center” time is nightly prep (which is currently 2.5 hours per week, But I feel like it is the goose that’s laying the golden egg, I really can’t scrimp on that. Beginning that discipline was truly when everything started to fall into place.) Actual trade execution or watching the market during trading hours (which I’m torn on. I could reduce my time a great deal by going back to swing trading, but that’s not really what I want to do. So, that’s going to be an issue that I have to grapple with. I may simply have to be a swing trader while I’m still doing a lot of learning due to time constraints. It would probably be easier, anyway.) and documentation and review (which is going to grow over time as I have more history to review).

Everything else is cost center time, but it’s all necessary if I’m going to improve. There are 44 hours of videos to review!! I’m still not comfortable with the Harmonic patterns. I want to continue drilling regularly on playback mode to hone my execution skills. There are other studies I want to investigate like learning more of the candlestick patterns. I’ll need to update my business plan regularly because I know it’s going to change often in the early days. I need to manage and clearly document my historic trades including paper and demo trades. And then, there are studies that I want to undertake.

So, I’m feeling a time pinch coming. I’ll figure it all out, but I find it interesting how the challenge has shifted.

-dave

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