It's my pleasure, my honour, my privilege to be here today welcoming you to this
PuriCassar experience. The Duomo experience. I'm sure you will have 3 days of very intensive training
and learning in the very good hands of Dr. Cassar and his associates.
So what you need to decide is, what are you trading? This is going to coincide with how
much time you've got to trade, what type of trader you want to be and everything.
And I can't answer this for you, this has to be something that you decide for yourself.
Some of you are going to struggle under pressure, you're going to feel nervous, you're
going to get in a fluster when things are happening quickly and you need to make a decision.
Whereas, some of you will get bored waiting and you need to do something that's going to be more active.
And all of this ties in with how you approach the markets and what time frames
you use, that kind of thing.
So that's the problem with a lot of the different ways that people trade and that doesn't mean
that you can't be profitable from that way or that there won't be opportunities. Because,
we miss a hell of a lot of opportunities from the way we trade. The way I see it is if you
get... if you're trading a session and you get 1 trade or maybe 2 trades, that's amazing.
If they're consistent and you can tell that they're going to be at this success rate,
you can then predict what your performance is going to be over weeks or months and stuff,
but you need to have something that's consistent. So this gives us consistent data.
It's going well so far, so the morning session we've just been basically setting the ground-work,
getting the foundations in place, get everyone up to the same level. Because then, over the
course of this afternoon and the next two days, we start to really get onto the practical
stuff and I really get to add value that you can't have in videos and stuff like that,
where I can actually go on the charts and adjust things for people and show them the
little tricks to get that extra edge in the market. So, for now things are going well
and we're getting the foundations in place and move onto the advanced stuff in a sec.
So I've adjusted it based on what's here, but is that just too out of date?
This is exactly why I don't like support and resistance. But, basically I would favour
what's more recent on the chart. The same way when we do moving averages, we use an
exponential moving average, because it favours the more recent data to the old data, it puts
it ahead. So whatever we do needs to be with that same mindset of being 'exponential',
like what's more recent is more important .
Ooh that was so close to my level. You have to be thinking, why is it so close to my level
but not touching it? And maybe make the adjustments to make it work. So basically, during a trading
session my job most of the time is adjusting lines that are already there. So when it comes
to our technical analysis on Sunday, I sometimes think they must be so boring to watch because
you've got five candles that have happened since the previous one and I'm usually not
doing much, because you can't always add levels. But it's just about the slight adjustments
to make sure the kissing points happen.
Building a portfolio is very different to trading. With portfolio theory, you have to
go back to things like the 'efficient frontier' have you ever heard of that? It's a curve
and it's basically showing diversification, how that reduces risk. So one asset you're
going to have higher risk. You put in two: bonds and equities, which is the sort of standard
one, you're a bit further along the frontier. You basically want to add assets that move
you along the efficient frontier, that don't move you too much to too risky for the reward
you're getting and don't move you too much into the less reward for the amount of risk.
You want to be on that frontier.
There's a problem that there's too many lines. So obviously now that we've drawn all of the
waves in the market, we have lines everywhere! Now one thing you might have noticed is if
you had a perfect reversal point on the chart, you drew the swing high/low there... if you
went backwards or forwards on the chart from that point you may have started to see some
interactions and think "well this is drawn perfectly, there are nice interactions there"
and then you go a little bit further along and suddenly it stops happening. The interactions
are a little bit higher up or something and this is exactly why they have a shelf life
for us. Because once they've been interacted with or when the structure's changed in the
market, they're no longer relevant. This links closely with other things we're going to be
doing, such as the Darvas Boxes and Fibonacci movements in the market, because behind the
structure of the market is a constant Fibonacci movement going on. There's ranges upon ranges,
ranges within ranges, but it's always Fibonacci retracements and extensions that are sort
of, behind the movements in the market.
Now the baseline trend line is the outline of the market. So it should be the case that
in most situations there's nothing that's going on beyond that point. You know, that's
the boundary, that's as far as the price can go in a trending market or even in a horizontal
market. If you looked at what we had before, imagining what was on the chart, we had the
reversal zone along here, we had the baseline trend line going along there, in a similar
way to what you've got with the reversal zone and knowing the price isn't going to be outside
the area. It's the outline. It's like when a kid's drawing a tree, they do this big fluffy
thing on a stick, it's like a cloud. There's no detail on it, it's an outline of the tree.
There's no branch and stuff sticking out of that. Unless potentially if they're like an
expert artist as a kid. But if you want to start adding the detail, you can see what's
going on in between. So the macro trend line, or the baseline trend line is the outline
and the details of what's happening inside that outline is how we use the micro trend lines