- Our Map is the chart zoomed out far enough to get the big picture. If we can only see the last few minutes of price movement. We need to zoom out and get the big picture. This is why you will here Jason Stapleton say “Look left, structure leaves clues.” In order to know where you are going, you need to know where you have been. Where in the past has the train turned around or refueled before moving on?
- Our current location is the current price.
- Our destination is the price and time on the chart that we are looking to catch the profit train and enter the market.
- Our compass is our complete tested set of rules which we follow to determine the best time and price to enter the market and also determine when to jump off the train. Either we get off the train because it goes the pre-determined number of pips the wrong direction, or, as expected we have arrived at “Profitsville”.
The time to decide where the train is going is not after you are riding on it. Likewise, the time to decide on your stop and profit targets is not after you are in the market. Make all of those decisions before you get your mind and heart emotionally involved.
I wish you all the best in your endeavors to catch that seemingly elusive train to “Profitsville”. Remember to “zoom out on the map” and to use your tested tried and true “compass” to plot your course to catch the train.
I will finish with this… My dad had a pretty good sense of humor. When I was a young boy he owned several gas stations back when they were known as “service” stations. Many times people would stop and ask for directions. Something like… “How do you get to Indianapolis?” He liked to say…
“You can’t get there from here. You have to go someplace else and start.”
Little did I realize how true this concept would be in becoming a successful trader. In order to get to your destination of “Profitsville”, we have to wait until price has transported us to the right place to begin the journey. When the price ‘car’ we are riding in meets the train we want to catch it’s time to jump aboard and ride it to Profitsville. Don’t get derailed!.. LoL… PipPip.