I have been attempting to daytrade for about 3.5 years now. I spent a brief period of time on the CBOE and almost didn't strike it out on my own until someone turned me on to "Mind Over Markets". I was hooked, so to speak. Finally, I had found an approach to the markets that made sense that wasn't like all of that other technical, mathematical mumbo-jumbo. Myself and my friend are pretty good at picking the value areas; I try to trade on value area shifts, concentrating around getting good trade locations at or near the nodes of value.
Long story short, it's been a money losing operation from the get-go. The first one or two pages of your and Mr. Steidlmayer's paper "Little Primer" describes me to a 't'. Knowing how to delineate value areas is not enough. It's seems to be all about exits, position sizing and psychology. I recognized before I started that psychology was just as important as anything else and have been working at that all the while; I appreciate that you at least address it in the lessons. I have been racking my brain to figure out an exit strategy for my value area trades. As I'm guessing you know, sometimes you have to wait all day for a move that you know is coming and there isn't any formula that I've been able to figure out that gets me there. I am probably undercapitalized, but that's another story. I still think it's possible to make it with modest capital, but one really has to have his/her act together, as I've discovered. I'm never going to make money if I can't take advantage of the big moves while still eating the times where I'm wrong about value change... I'm stastically always behind the curve.
Anyway, my questions are these... how compatible are Market Profile and Drummond Geometry? Also, in the lessons how much do you touch on exits and position sizing/money management? Hardly anyone talks about those things. I'm not expecting hard and fast rules... I guess I'm just searching for some guidelines that will help me make a good game plan; guidelines that won't take me too far away from my roots in Market Profile.
Thank you, Ted, for your time and I look forward to hearing from you.
E.B.
Me and My Market Plan
Re: Me and My Market Plan
Thanks for this, and for your interest in my current work.
I have a lot of respect for Market Profile principles and find them especially useful when the parameters of congestion are well defined, and thus the bell-shaped curve and the price-discovery principles that result in the bell curve are most reliable and useful.
I have found however that at points of market turns and at extreme moves that break into new territory that Drummond Geometry is very strong, and it has taken a center stage position in my trading. The coordination of support and resistance in multiple timeframes is very powerful and gives guidance as to direction more often than not.
In the Lessons, yes we do talk about position size and money management, and we supplement that with movies and commentary posted on the students-only private website. The last half of the Lessons contain numerous trade plans and all have the entries and exits completely described. Lately Charlie has been posting daily movies and also responding to questions from our traders and so these topics are beginning to be developed more fully as well.
There's quite a bit of information posted on the www.tedtick.com website and feel free to drop me a line if you have further questions about the methodology.
I have a lot of respect for Market Profile principles and find them especially useful when the parameters of congestion are well defined, and thus the bell-shaped curve and the price-discovery principles that result in the bell curve are most reliable and useful.
I have found however that at points of market turns and at extreme moves that break into new territory that Drummond Geometry is very strong, and it has taken a center stage position in my trading. The coordination of support and resistance in multiple timeframes is very powerful and gives guidance as to direction more often than not.
In the Lessons, yes we do talk about position size and money management, and we supplement that with movies and commentary posted on the students-only private website. The last half of the Lessons contain numerous trade plans and all have the entries and exits completely described. Lately Charlie has been posting daily movies and also responding to questions from our traders and so these topics are beginning to be developed more fully as well.
There's quite a bit of information posted on the www.tedtick.com website and feel free to drop me a line if you have further questions about the methodology.