Loading ...Stan Weinstein’s Stage Analysis applied to gold
Yeah.. there is a lot more components to Stan’s framework (weight of evidence… forest to tree approach… higher time frame trend… etc)… but at the base.. there are a minimum of criteria to look at on weekly chart to spot an A++ Stage 2 candidate.
You’ll also have to accept that you’ll never enter at the bottom.. and never exit at the top. That is the price to pay in order to lower risk of getting whipsawed in or out of a trade…
Not to mention your emotions most likely getting in the way of holding on all that ride.. even if within the boundaries of the trading framework’s rule set.
I know you will agree…It all looks SOOOOO easy in old charts Partick
The Weinstein entry in 2009 was also a chartology entry point…breakout and backtest …very much like this move now
The Weinstein exit you show in 2013 would have been tough because at $1600 where you exit…there is a nice move back up to 1800.
Would you just sit there and not bite ?
A lot of talk about the end of the financial world and 10,000 Gold back then
Yeah.. I would of most likely found an indicator to justify me getting back in.. the hell with my original plan!
Stan has a provision for continuation breakouts… if they happen late in the Stage 2.. then there are less probable to continue. I also think you have to recognize the 1900 monthly defined resistance now created.. and still close by. A close above that would of been necessary to try a long position once again. I know.. FOMO is hard to avoid…
But the more you practice, the easier it gets. That is why I look at ANY charts. If I give myself options, I will have less chance to feel compelled to play a particular asset. I’ll know that beautiful A++ Stage 2 setups are in progress of being built and I’ll have lower risk, better reward with those.
On a side thought, maybe the secret is in letting someone who has nothing to do or cares about trading, stocks, or gold do the trading for you! You teach them your trading framework… then give them the keys to your account,, change passwords.. etc. You will have now removed the emotion factor.
I always thought that together we can be better traders… yet the trap is crowd mentality.. aarhhh.
Maybe if we could create a shared brokers account… Let’s say 10 traders. Then require quorum of X to enter a position and exit. We’d keep each other in check, in case one of us gets to emotional for whatever reason.
Sunday thinking…
Patrick
I applaud you Patrick for taking this aspect of trading to heart and looking for a plan you can stick with and live with
It is certainly the emotions….fear of losing and fear of missing a move …that mess us up all the time.
I don’t think any of the above would work for me….I’m a control freak…have to have the keys !
🙂
Indeed, my greatest challenge in life is trading… you get a chance to learn your true inner self, greed, fear.. BUY also a chance to get better! Not many things in life can bring that out in a person.
It’s a challenge for sure.
One thing for sure IF you are trading and it really really matters to your financial well being ….you are more prone to
painful mistakes.
Size matters….Position size that is.