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A challenge that I enjoy here at STOCKS & COMMODITIES -- delivering a variety of articles, something for everyone -- is also a benefit, because I, too, get to learn new things. Take, for example, "Compound Pivots And Market Symmetry" by William Erman. His first article appeared in February, and like that one, this piece takes a unique view on solving the puzzle of the markets. I personally found his work intriguing. As a bonus, at the end of his description of his technique, Erman offers us a market forecast. I don't want to take the wind from his sails, so I'll leave it at that and let you discover it on your own.
Speaking of forecasts, many first-time subscribers have asked us for articles with more of a forecasting bent. We'll try -- but our main goal is to teach you technical analysis so you can become an independent trader or investor. You know what's interesting? The end result of being independent differs for every individual. While the overall process is generally the same -- develop skills, technical knowledge, and disciplined execution -- it really comes down to everyone finding their own way. And that can be a circuitous path, generally ending with the trader using a simpler set of procedures than he probably expected.
Simpler, you say? That's right: simpler. The neophyte often looks for the key indicator, simple or complex, in the erroneous belief that there is the one indicator out there that can handle all trading situations, from ranges to trends, picking the bottoms and the tops. Finally losing faith in that belief, the novice trader moves on to looking for more complex approaches, thinking that maybe, just maybe, a group of indicators can give the trader a signal to end all signals. Ultimately, though, the trader settles on something that is both comfortable and effective, his dreams of a Holy Grail indicator or system dissipating in the harsh light of day.
Did you notice how I slipped the word comfortable in there? Many market participants think that profitability is the only important aspect of trading. Everyone sets out to make money, but you have to find a method that you can implement comfortably, because it's not worth your time otherwise!
Along the lines of becoming a comfortable trader, our interview this month with traders' coach Van K. Tharp of the International Institute of Trading Mastery touches on some of these issues. Tharp is best known for his work in trading psychology and the modeling of successful traders. Tharp points out that the search for the Holy Grail is really a process that brings you back to look inside yourself. You are as much of the equation as the system and the market.
So keep a close eye on yourself as you travel down the path and we'll continue to offer as much variety as we can. We're here for you to reach your trading goals. Trade well!
