I received the following email from Richard:
"I have struggled to be consistent over the past few years, and although I have seen you write more than once "focus on one or two set-ups and you can make a living", I never did. My biggest issue is thinking I always need to be in a trade, I always need to be trading, and I always have to find a set-up. But it hit me at the end of 2008 that I am good at trading a few set-ups, and if I just concentrate on those and quit trying to trade everything that comes along or worse yet force trades when I shouldn't be trading at all, I would be better off. So far so good, I've had my most profitable two months in a long time. And my losing trades have dwindled down. I just wanted to drop you a quick note and say thanks."
Thank-you Richard. Your email will probably cause some people to stop and think, and to be honest I can't add anything to it...you have delivered some great insight.
Here are a few charts for you guys to mull over.
I am posting the charts below above because they are setups that will be key to my 2009 trading. Ignore the timeframes and the specific symbols and look at the patterns - they happen every day, but people tend to miss them because they are chasing other setups or they are already in trades that are substandard (ie, trades that are not good setups...but you feel the urge to be in a trade - any trade - and you give into it).
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