It’s been less than two years since I seriously started looking into male trading methods on the stock market. The Ichimoku lines, charts and averages, the Bollinger bands, and the Stochastic Oscillators showed up on my charts in succession, and page after page of books on the subject started falling into place in my head.
Initially, I was in total awe of the stock market, much more than I am now. I was tempted, enchanted, there was some secret, something mysterious about it – just like the ideal woman.
The other day I suddenly realized how I was trading. I was amazed at myself. What surprised me most was that I’m not using practically anything I’ve ever read in my trading. Right now most men must be thinking, ‘Now, that deposit is in my pocket.’ That’s exactly what one trader told me when I first opened my brokerage account. And yet my deposit is still growing far ahead of the index (the index is used as a standard for a good reason – my portfolio rarely changes its structure).
So why do people take for granted that men chop wood and build houses and women make the house warm and cozy and cook dinner? Is it because we’re so different that it would be a terrible mistake to teach women on the stock market to swing an ax or do spadework? We’re emotional, forgiving, sympathetic, sensitive and patient, and that’s what makes us strong.
So how can that be used in trading and what helps me in making my decisions?
- 1. I look at the chat room figures. Just a random selection, there’s never more than twenty people chatting at any given time, but there’s a psychological mechanism here. The ones chatting are usually the ones who are confident in their current position. Hassling in the chat room is a sign of margin positions against the market.
- 2. I pay attention to blogs (sometimes even the name is enough) and the bearish vs. bullish comments. I also keep an eye on the quality of the ratings (the worse the ratings, the more reliable the information). And of course, the commentaries. There are as many points of view as there are people, but the more categorical statements you see, the closer you are to a market turnaround.
- 3. I watch the candlesticks. The Japanese Candlestick book is the most emotional book on the Stock Market and the candlesticks represent people, their feelings and expectations. You can have a lot of fun making up new and interesting names for the candlesticks – but I’m not really into that, especially when I see that special emotional component.
- 4. A cursory look at a chart can be of some help, but it only shows whether there’s any potential energy in it. A chart will show sentiments – ‘tired’, ‘recovering’, ‘anxious’, ‘relaxed’, ‘high’… In a way, even though the myth of the puppeteer is still a myth in my book, it has taken the form of a baby dinosaur in the market with regular animal instincts, which, like most animals, does not dwell on its emotions for too long – typically from a couple of hours to a couple of days.
I don’t put my observations down on paper, I look at the emotional field that these subtle indicators create and I trade based on what sentiments are ruling the market. Rule number one in trading – the emotional field is cannot be trusted!