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.

  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

TAOST Topics

How To Trade Emotional Capital simple trading Simple Day Trading futures trading swing trading Emini Trading How It Works stalk candidate trade idea Bitcoin Daily Simple Trading Habit TAOST market update support and resistance trading intraday 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 day trading lifestyle how to day trade keep it simple risk risk management 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 TAOST Power Zones TAOST Price Clusters Trade Pattern Trading & Poker day in the life of a day trader how to trade Bitcoin learn to trade performance improvement sell signal side hustle the power of simple trading psychology trading rules trend persistence ultimate side hustle Buy Signal Charts To Watch 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 TAOST Price Structure Trading Components Trading Myths Value Why You're Only 1 Setup Away chaos theory compounding 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 prediction quantum leap improvement random random market update risk management plan sector selloff simple day trading risk management simple day trading strategy that works stock broker trading secrets training trend analysis