Hi Jacko,
U shouldn't have asked me what I think;
http://issuu.com/swingtran10/docs/the-three-skills-of-top-trading
Have just been reading the intro and last section of this book. What interests me is his holistic approach, which I aspire to-
the big picture -holistic being - as decades ago, I have decided to subject myself to the data of the share-market to unravel the mystery of the whole. An unconscious obsession, now consciously realized and growing.
Eg. for myself I have been obsessed with using a Charting package for 10-15 yrs and scanning and filtering charts and indicators many thousands of times, to see what is true. As most indicators/methods can fit a certain % of the time, and there would be some effort by the higher control to keep people ignorant, by promoting stuff that is catchy but just another chance fit, and smart individuals promoting their own new subjective methods and indicators- which all makes for the thousands of different indicators and methods on the internet and the market itself.
Which is what is different about Wychoff/VSA is more holistic.
Yet for me it is still not holistic enough.
Eg. My 24/7 obsession with charting for 10-12 yrs- first 12 yrs I continually lost everything. The more I applied myself the more I lost.
After I joined HC, I found about money management and had some success in trades, as my confidence in controlling risk and my own money grew. Also found about market analysis and sentiment of the collective and how important that was compared to my subjectivity and objective TA and FA analysis. Applying this knowledge also improved my results dramatically.
All the while I was physically experiencing wild swings and dramatic changes in my mental emotional states due to the trades.
And how to deal with this was the other major aspect of my time spent trying many different philosophical and psychological methods for balanced improvement instead of decadence.
So this book teaches that successful trading is 40% risk control and 60% self control.
Of that 40% risk -1/2 is Market analysis and 1/2 is money management.
That makes it - 20% Market analysis- 20% Money management and 60% self control.
I would say from my experience so far, the 'Market analysis' is 1/3 TA charting, 1/3 FA research, and 1/3 sentiment.
That makes it - 100% successful trading consists of;
market analysis 20%, which consists of - TA charting 6.66% - FA research 6.66%, market sentiment 6.66%
money management 20%
Self control of your own psychological state management 60%.
So TA charting is then 6.66% or only 1/15th of the skills required for successful trading.
So from an educators perspective, I would imaging that being taught or learning a little of each is in stages is the best scenario.
eg like schooling; - level 1- learn the beginnings of each method - level 2 learn intermediate skills of each - level 3 - learn the advanced skills of each concept.
That is the interesting thing about this professors- Kank Pruden- knowledge as an educator, is that as humans we put the effort in the wrong areas and as an educator he applies the holistic approach in his book- doing what they do by going one step better or ahead.
And from my research about 'state management' there is only 2 outcomes - control-auto suggest yourself or be controlled-hetero suggested by others, consciously or unconsciously.
So in his book he provides the different psychological states that we can preframe and master for different aspects of trading.
Which is why he says that for day trading, cycling through these states for each trade is necessary- and not many have that ability.
Similarly managing a portfolio is the same - Eg if u are in a psychological state for one share trade and another may immediately require a different psychological state.
Knowing the mental preframe in advance and switching to it, is the key to making life easier. I havn't applied this new found info yet and maybe it it is too scattered or off track. But it seems to be a better way to manage the experiencing of conflicted emotions or madness from the objectives of positive results, self improvement and financial freedom.
