THANK YOU MANIPULATORS!
Well, what would a slow Wednesday, 2 days before “the most important employment report evahhh!” due on Friday, be without some $5 Billion of notional gold being
manipulated lower dumped from 1308 down to 1304 in seconds? As I have repeatedly said
before, nobody in their right mind [with profit in mind] would do something so
stupid as unleash billions into a market order on a day where not much is
expected to happen; but this only applies to people who care about price, not
people who 1) have an anti gold agenda [hello FED & BIS!], 2) don’t care
about price or losses because they have the ever helpful “CNTRL-P” button at
the ready, and 3) have as a guiding principle to screw as many retail specs
and/or others who are long gold into selling for loss, while at the same time
enriching bullion banks who do their bidding.
Welcome to modern day trading!
Well, it certainly doesn’t hurt us, and as a matter of fact it produces profits; thank you very much
idiotic manipulators! Keep up the good job!
Today’s trade directly below with all the details and commentary; and unless the manipulators can take another suicide shot at the 1300 level gunning for sell stops, or make new highs [unlikely], I don’t see any reason to get caught up in this crap when the music stops for the day.
A couple of very important observations if you will.
1) If it hasn’t dawned on you yet, even after a full month of digesting gold charts here on the blog, the fact is the volatility algorithm is about as good as you are ever going to see barring 10 million lines of code and a staff of math Ph.D.’s at your ready, and a complete staff [circa Vampire Squid or maybe JPM] to implement buys/sells in an HFT type of environment.
2) The exhaustion lines are “pure gold” [pun not withstanding] in predicting in real time the end of a move after some serious buying and/or selling. The RM=1 mode is good about 90% of the time in normal trading environments, and very rarely does gold hit RM=4 without some kind of big news that jerks the market one way or the other. In case you haven’t noticed, and I know you have, there isn’t another indicator on the market today [at least that I know of] that is even close to the track record of my exhaustion lines in real time.
And if you haven’t done it already, take the time and scroll back as far as you want to on the MT4 and see what I mean; what you will find will have the hair on your arms standing up. No secret really; W.D. Gann’s theory & methods combined with my own proprietary theories revolving around vector calculus, presented in a “visual mode” in real time to “get us close” to tops and bottoms. As I have argued for years, I don’t need to be exact in this game; close gets you millions if you follow the rules.
With the advent and invention of the “demo account” [play money], nobody is ever put in the position of not knowing what they are doing before real money is at risk. Remember Christina from yesterday? The first day I turned the laptop around and showed her the MT4, which was the very first time she had ever seen it, she freaked out and said something along the lines of, “Oh my fucking God, you want me to understand this shit? This is fucking Chinese! How do I … what does this symbol … WTF does all this mean, and I ain’t never going to understand this shit!!” A few short months later and she is making trades as good as I am, and in some cases getting better fills, because she is a few seconds faster; and no, I’m not kidding about this.
It’s a process folks, it’s not rocket science or brain surgery; fear of trading comes from “unfamiliarity” of the correct process on how to make money. Once you know, then see with your own eyes your account grow [whether demo or real, it makes no difference], doing the “right thing” [i.e. being disciplined, showing patience, and following the rules] becomes a positive feedback loop! And if that doesn’t motivate you, then I can’t help you.
Christina’s first month, she tried to quit on me about 9 times [but of course I said no], had on 2 occasions whopper losses because she didn’t want to take a small loss on a position, and basically went mental screaming at the computer; slowly, she came to realize you can’t think about this stuff, that “brains” and thinking get you into trouble, and that her “intuition” about where it was headed was “faulty” and not reliable. “Hey –vegas, does this shit happen to everybody who is new to this? Are other traders as fucked up as me? MY SHORT ANSWER: “Yes, and worse.”
If I had to pick a moment when it turned around for her, it was when she was long and didn’t get out at the exhaustion lines because she thought, “It’s going a lot higher.” It didn’t, the exhaustion line hit was the top for the day, the market turned around, and when the music stopped she was looking at a huge, huge loss in her demo account. She looks at me when it’s over, totally disgusted with herself and says, “Fuck this … I don’t have what it takes to do this.” MY RESPONSE: “Bullshit, this happens to everybody … you ain’t special … you got your ass handed to you because you did it “your way”. And guess what? Your way is the “loser way”. If this shit was easy, every low life in town would be doing it … You got a decision to make … You want a life? You want to leave the Pudding Business you are stuck in? Then STFU, follow the fucking rules, and stick your pride where the sun doesn’t shine … Suck it up baby and do what you are here to do… namely, learn to trade … I’m teaching you, not the other way around … not because I’m smarter than you, but because I’ve been doing this before you were born and have absolutely walked in your shoes … been there, done that … it’s a humbling experience trading is, and it makes you look in the mirror and ask yourself if you can be disciplined and show patience and follow algorithm rules … if you can’t, you’re fucked … if you can, there is no limit to the freedom life can give you because you will make more money than you can dream at the moment … the choice is yours. Of course, she stayed.
I think that incident crystallized in her head the importance of making consistent money trading, and forget about the idea of the “home run” and trying to be an analyst. It also brought her renewed respect for the exhaustion lines as “predictors in real time” of short term tops and bottoms. “Hmmm, maybe this –vegas guy is on to something … damned if I can see “any holes” in this … and worse, every fucking day he takes money out of this thing … and most definitely, he doesn’t do the “stupid shit” I do… OK, I’m a believer … Shit, time for ME to start making money like he does … Hell, he lives like he wants, and that’s what I want … and if trading the algorithm can do that, count me in ‘til the fucking day I die!!” [Did anybody see the light bulb in her head go on besides me?]
And so, here we are, another day another dollar, and another buy at the lower exhaustion lines, that seem to the uninitiated like they are intentionally placed at tops and bottoms by some unseen, all knowing force. Some days I shudder to think what a guy like Gann could do with modern day computing. Until tomorrow …
Have a great day everybody!
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