Friday, May 20, 2005

Are you a trader

I have refrained from commenting on things happening in the WCCI since I left. I have not rejoined in secrecy as I can’t follow even 2 chat rooms without getting distracted. And I am currently interested in at least 4 chatrooms, which I would gladly follow, if…yes if I were interested in participating in multiple chatrooms for my ego, for secretly promoting Futures-Trader, for watever other reason you may come up with.

But yesterday someone I really respect as trader got thrown out of Woodies room:

Dr. Bob was forced to leave.

What did he do (as far as I can see from the outside)?

He introduced new ways to trade the cci, he traded a longer term cci, than the one favored in the room.

I still have Woodies email, where he told me, that moderators are free to use different cci lengths the LSMA or the 34 EMA, as long as they stick to cci.


But what Dr. Bob really did was applying Woodies CCI to his personel trading style to make it his own cci system. It was no longer Woodies system, it was his system, which he could trade and make money with.

Then he came forward and told you about it. And he was good at it from what I remember, when I was in the room… too good it seems.

Would Dr. Bob’s system work for you? No. As long as it remains Dr. Bob’s system it will not work for you. But you had the chance to make Dr. Bob’s system your own system. As you still have the chance to make Woodies system your own system. Basic CCI can work, if you make it your system. But as long as you just hang in the room to get entertainment, to have someone telling you, what he sees in the market, to see posts about entries or exits, or to have trades called, you will remain the market sheep, the wolves need to make their living.

NQoos advocates leaving all chat rooms, if you want to become successful. I think, being in the right room, knowing what you need to look for to become successfull and getting the social needs fulfilled at the same time is the way for me.

You need to have a system.
Any system works, as long as it gives you an edge and as long as you can make it your system.
Now look for the traders, who seem to do good. See, if you can see their trades on your chart. Did you get a signal, when they told the room, they entered. How do they manage their trades. You don’t need their charts, you need your own charts. The chart is like your living room, make it as comfortable as possible for you. Is their way acceptable for you? Some use 20 tick stops, some defend their positions by adding to a losing position, some take either a 20 tick winner or let it run into the stop, without flinching, unless they get a reversal signal.Is this your way?
You need to know, how you will handle your trade and stick with it.

So if you trade the Basic CCI, just a few days ago I said: by all means remain in the WCCI. It’s the best place to learn about the CCI. But recent developments let me change my opinion. Look elsewhere for your CCI mentor. And take a look at Sport’s blog and the CCI articles he mentioned. There are CCI sources besides Woodie and they are good ones.

If you know, pure CCI is not working for you, as you use additional information to confirm your trades or to manage your trades, take the weekend to think about your reasons why you are in the WCCI.

The most important one sure is, that you have made friends there.
Still I knew, I would be thrown out of the WCCI earlier than later, because my system had started to diverged from the basic CCI for 9 months and I told people about it. It was and is my way of testing my system by bouncing ideas in the room and I changed from a ranging trader at barely breakeven, which I was in the WCCI, to a profitable trader, who sure has his setbacks, but who is profitable for 5 months now.

I sure had a feeling of loss, when I decided to leave the WCCI, but fortunatly I first was sheltered in 2 private groups with some of the friends I had made and then a new gathering place was founded, where most of my old friends hang-out nowadays. Not as comfortable as Hotcomm, not streamlined, but we can discuss what we want, as long as noone reverts to name calling during the discussion.