December 9, 2013
Over the weekend I walked up to a graveyard near my house and just walked around for a while looking at the gravestones. Then, based on a recent video from Norm Hallett I said out loud “I am a wise and disciplined trader.” There was a reaction as though my mind said “No, you’re not!” Then I said it out loud again and this time I felt something exciting. I really believe that I can become a wise and disciplined trader and it is a really thrilling feeling. I’m gaining a real sense of confidence, even though I don’t have proof to back it up. I wound up walking around the graveyard giving the gravestones an impromptu lesson on the six Wavy Tunnel setups. From the hip, I explained exactly what should be happening with the Tunnel, the Wave, the Filter, Price, the CAO and the Gold Bungee. I told them exactly how each trade entry should be triggered and where they should set their stops. Then I explained in detail how they should exit their positions and when to trail their stops. I even explained the 3-Profiteers to them.
On one level, I feel that I really know the basic Wavy Tunnel. But, on another level, I don’t feel confident enough that I’m going to know exactly what to do when I need to do it. The biggest piece that feels missing is the full integration of this avalanche of information. I also need to move between time frames more easily.
So, on Sunday night and again tonight I have written up exactly what I believe is going to occur in the S&P 500 in the near future, totally from my own analysis. I’m using the Wavy Tunnel positions on the short term charts in several time frames. I’ve counted the waves all the way down to the Minuette on the 5-minute charts, and have targeted what I believe will be a move back to the Tunnel on the 1-hour chart to complete a Minute circle-iv. I’ve also formed an alternate count that Minute circle-iv ended and we’re only going to get a wave-2 pullback to the 1-hour Wave.
I believe I know enough to sit down every night and state my analysis and reasons why, in writing. I believe that exercise is going to help me to synthesize this information and show me where I’m weak. Then, I’ll be able to go back and see where I make mistakes. And if I do this for a week or two, and then go back and make another run-through of the videos, I’ll have something tangible to hang the material onto.