01 November 2019

Context & Simple Trading

"For me context is the key - from that comes the understanding of everything."
-- Kenneth Noland
=========================
One of the best things you can do for your trading is learn how context works.

What is context you say?  Context is making sure the setting is conducive to you achieving your desired end.

Examples...
  1. A fisherman uses a geolocator to take him to a spot teeming with fish
  2. A person who likes taking walks in the warm outdoor moves to Miami... not Antarctica
  3. A couple that wants to enjoy a romantic, wine filled weekend shouldn't go to a dry county empty handed... Trust me.
Another place where context matters?

In trading.

Support and resistance... trendlines... TAOST Power Zones... These are all things that help provide the context within which price trades.



Here's another example of contextual price action... Price at all time highs... "Good news" comes out in the morning.  Price pushes higher and forces short sellers to cover (close their positions.

Like so...

No comments:

Post a Comment

My Most Popular Posts

Follow Me On YouTube

TAOST Topics

How To Trade Emotional Capital simple trading Bitcoin How It Works Simple Day Trading swing trading stalk candidate Daily Simple Trading Habit how to trade Bitcoin trade idea Process price action simple trading tools what to buy what to trade Best Retirement Investments Chart Patterns Focus New Trader Sins Swing Trade TAOST Trading principles TAOST market update day trading lifestyle keep it simple risk risk management support and resistance trading psychology trends Are you too old Confidence FAQ FASTQ How To Invest Income streams It takes as long as it takes MAR Retirement Crisis Retirement Investment Retirement Trading Trade Pattern compounding day in the life of a day trader how to day trade learn to trade performance improvement sell signal side hustle the power of simple trading rules trend persistence ultimate side hustle Buy Signal Coil Distraction How To Trade EUR How to trade SPCE Mistakes Oh S#!t Gap Oil Optimization Process Ownership Portfolio Trade Private Equity Professional Gap Retirement 911 Risk Arbitrage S&P 500 Sacrifice Shooting Star Trading & Poker Trading Components Trading Myths Value Why You're Only 1 Setup Away chaos theory context diversification downtrend extra money financial freedom how much money how to information is the stock market random kis linear regression channel lock limit down meditate money money management negative compounding optimize thinking pandemic position size quantum leap improvement random random market update risk management plan sector selloff simple day trading risk management stock broker trading intraday trading secrets training trend analysis