Where’s the Popcorn

Today’s lesson consists of 5 videos.  The first video shows me how to set up my monitor for ppa and channel trading, using correlation for confirmation.  By using correlation to confirm the criteria I’m looking for in ppa or channel trade, I can dramatically reduce my margin for error in picking trades.  What this does is gives me a sense of empathy for what is happening in the currencies and allows me to make an informed decision.  Quite importantly too, I always need to remember that regardless, if all the criteria I’m looking for is in place, but there is no momentum (movement) in the currencies, there is no trade.

The other 4 videos were live trading sessions that Sid uses to show the exact criteria I will be looking for in correlation trading.  These worked very well because Sid talks all the way through, giving commentary on what it is he is looking at and why he may or may not get into a trade.

The good thing about these videos too is that they didn’t show perfect trading conditions all the time, so it really did give me a real sense for what it will be like when I sit down to trade.  There will be dead cycles in trading and these videos did an excellent job of showing how to behave during these times.

Important points to remember that I take away from today’s lesson:

• Anticipation is no good – if ALL the criteria are not met, there is NO trade.
• Trading is a subjective endeavor.  I must be able to make my own individual trading decisions.  No two people see the same thing.
• In order to do the above, I must be patient in order to develop the skill, instinct and judgment to become a good compounder.
• Making good trades will help develop inner confidence and over time I will become a better trader for it.
• Sometimes it’s like sitting and watching paint dry.  We get paid to wait for the best trades.  Waiting is a good thing.
• Following the rules will empower me in the long run.  The rules are there for a reason.
• If there is not a good trade, stay out.  I will not have lost anything, and will have my capital still intact to trade on a better day.
• When trading, if the trade causes me to doubt, I must get out!

Great lesson today!  I’m absolutely amazed, after reading back through what I’ve written so far, how much I’ve actually learned.  I’m not an overly technical person, but this learning process has been so user friendly that it’s actually been really enjoyable.  And, I’m actually very proud of myself.

Well, I would like to close by saying that I really enjoyed the videos and I can really taste it now.  I know that Sid’s ways are simple, but I also acknowledge that I know it will not be easy.  It will ultimately be up to me.  Sid has made his lessons the simplest to follow and understand as possible, but in the end it will all come down to whether or not I have the patience and discipline to put the rules into practice.  I will find out very shortly.  I’m looking forward to it!

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