I attended the tail end of a Dalton webinar which was excellent. (thanks to Brett's blog) for the listing. In that he brought out two things which I think was very important (I missed 70% of the webinar).
First, as any one of us start in trading, we play our first practice ( or real money if you prefer) game in the Major League Market (MLM). There are no pee wee leaques for trading, no high school or college programs. Certainly no minor leaques. We are hugely disadvantaged in the game. If I had accepted that fact many years ago, I would have just sat in front of the orderflow for years before I got myself a mouse to click.
So every day you walk away a winner (or a draw), you buy yourself a cigar (dont smoke it). Every week you walk a winner, treat yourself to the golf course. Every month you do so, take your family for a weekend trip. Because you have won against the system of the Ivy league graduates who are given all the training and resources in the world and a very very deep account. It is not neccessarily their money you've won, but you've played at the highest level. Every time you dont, prepare for game day (remember who you are up against). Wow ! this sounds like advice. Please remember, this blog is mainly note to self.
The second thing that is relevant to me as a daytrader is to always evaluate what kind of day it is and who is likely in control. It is from Dalton's books that I have begun to have an understanding of the significance of the day type and how to use it in trading. It is my understanding that knowing which time frames are likely in play during a days session is more important to the day trader than any other time frame trader. That simply does not mean volume of buy vs. sell but an overall picture of what is/is not affecting capital flow - macro news, currencies, commodities, bonds and a myriad of other things that affect the flow.
(I apologise for this late notice - but I am writing this blog strictly from a day time frame traders viewpoint. )
Elaborating on both the second point and my previous post on the current market paradox, we could ask - are we going to trend up (long time frame) or balance ( Short/intermediate time frame). If the market is not doing a great job at one than the other outcome is more probable, right!