Rickey says to take notes

...continued from yesterday...

This continues a discussion about The Trading Edge: How To Trade Like A Winner (Wiley Trading)

Rickey says that you need to keep a journal in which you observe prices for patterns, writing down your thoughts everyday about what you observe.

Then each weekend, you need to spend time reviewing your notes and thinking about how to use the price patterns you observed. Out of that thinking will emerge a hypothesis.

Next, you need to test your hypothesis to see if it works on past prices. If so, you then have a theory to test on future prices as they occur.

If your theory proves profitable when papertraded with prices in real time, then your theory is your edge.

...cont'd tomorrow...

Copyright 2007 Raymond T. Lee. All rights reserved.
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