Tuesday, May 28, 2013


The WHITE ZONE serves on very simple purpose.  To determine who has control, buyers or sellers.  In the simplest of approaches,  a trader simply wants to focus on long setups above the WHITE ZONE & short setups below.  So the first clear concept is by understanding who has control, you can align their interest with your interest.  In the morning, when we gapped above the WHITE ZONE, a trader would know that taking a short was a lower odds proposition.  Even if a trader did not get long,  not being short saved you loss of capital, frustration & all the emotions that come from getting down early in the day.  As we approached Initial Resistance I tweeted that I expect Responsive Sellers at Initial Resistance & thats what we got.

Now take the same situation and flip it upside down.  Say you did not get short for what ever the reason.  By knowing that we were now trading BELOW the WHITE ZONE there was no need for any except the most aggressive to try longs.  Just by focusing knowing who was in control you did not step on a potential 9 point land mine.  Your not pulling your hair out.  Your just waiting patiently.  

Was there money top be made long below the WHITE ZONE & short above?  Yes,  but it was harder money and requires greater skill & discipline to execute those trades day after day.  Most can not do it without a great deal of experience.  Most traders lose money or break even in cycles of boom or bust.  The dream of making lots of money remains elusive until you can stack the trades and days together.  Think about it.  

NOTE: Interested in learning how to become a consistantly profitable trader?  I have an introduction to one to one coaching package that offers 3 one hour session for only $200.  Its a great deal.  You can contact me at TRADENPERFORM@GMAIL.COM to set up a 15 min chat on skype to see if we match.

Notice: This Blog & its contents are intended to be for educational purposes only & not to be construed as trading recommendations  in any way.  You should not follow anyone blindly.  Trading Futures & Options on Futures involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions are subject to change at any time.

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