English Subtitles for TAAS 1 1



Subtitles / Closed Captions - English

hello and welcome<font color="#CCCCCC"> i'm adam</font><font color="#E5E5E5"> crimes and</font>

this is the first of many weeks of my <font color="#E5E5E5">training course the art and science of</font> trading<font color="#CCCCCC"> so i</font><font color="#E5E5E5"> hope you</font><font color="#CCCCCC"> will allow me here</font> at the<font color="#CCCCCC"> end</font><font color="#E5E5E5"> the introduction at the</font> beginning to be a little bit more<font color="#CCCCCC"> free</font> <font color="#CCCCCC">form and</font><font color="#E5E5E5"> maybe to ramble a little bit</font><font color="#CCCCCC"> i</font>

will<font color="#E5E5E5"> try and following weeks to be much</font> more employment much more concise and respectful of your time to try to pack as much information is<font color="#E5E5E5"> I can you know</font> certainly within reason<font color="#E5E5E5"> but in a</font> relatively small amount of time here at

the beginning<font color="#E5E5E5"> though</font><font color="#CCCCCC"> I want to</font><font color="#E5E5E5"> talk a</font> little bit about my experiences and my philosophy and my perspective on<font color="#CCCCCC"> markets</font> <font color="#E5E5E5">and</font><font color="#CCCCCC"> I think that's important for you so</font> you understand the context you understand where these ideas come from

<font color="#E5E5E5">and that's going to be important as you</font> start to put it together with elements of your personality and try to make sense of everything into coherent whole <font color="#E5E5E5">so that's what this recording is going</font> to be<font color="#E5E5E5"> this is an introduction to the</font>

course and an introduction<font color="#CCCCCC"> of my way of</font> looking at market<font color="#CCCCCC"> is going</font><font color="#E5E5E5"> to be another</font> recording this week that looks at basic chart reading basic trading techniques and concepts and this will kind<font color="#E5E5E5"> of be</font> <font color="#E5E5E5">for many of you I think a review but</font>

<font color="#E5E5E5">it's very important to start at the</font> beginning and then there will be a<font color="#E5E5E5"> third</font> recording that discusses some of the psychological skills that behind learning a<font color="#E5E5E5"> high level skill like trading</font> and then<font color="#E5E5E5"> we'll send you off with some</font>

homework<font color="#E5E5E5"> so going forward that's going</font> to be the rough outline each week<font color="#E5E5E5"> will</font> be a set of videos originally<font color="#E5E5E5"> I had</font> conceived<font color="#E5E5E5"> of one video but</font><font color="#CCCCCC"> i</font><font color="#E5E5E5"> think it</font> makes sense<font color="#CCCCCC"> thinking about how you</font><font color="#E5E5E5"> would</font> like<font color="#E5E5E5"> to review the material to break it</font>

up into a few smaller videos and the course<font color="#E5E5E5"> going to be divided between</font> <font color="#E5E5E5">trading concepts so let's say more like</font> classroom intellectual knowledge and trading skills because those two things are not the same<font color="#E5E5E5"> the</font><font color="#CCCCCC"> you know you</font>

<font color="#E5E5E5">certainly can know what to do and not be</font> able to do it in the market<font color="#CCCCCC"> you</font><font color="#E5E5E5"> can have</font> all the knowledge in the world and not be a successful trader<font color="#CCCCCC"> because you don't</font> apply the information correctly because you don't have the skills of profitable

trading<font color="#CCCCCC"> so we're going to try to bridge</font> that gap between knowledge and skills <font color="#E5E5E5">and to do that</font> the third component knowledge skills and psychology <font color="#CCCCCC">this</font><font color="#E5E5E5"> course is also going to include a</font>

heavy dose of some psychological skills <font color="#E5E5E5">and there will be additional recordings</font> that will do things like looking at <font color="#E5E5E5">relaxation looking at later in the</font> course<font color="#E5E5E5"> actual hypnosis trance techniques</font> and how you can apply some of these and

both<font color="#CCCCCC"> your learning and trading</font><font color="#E5E5E5"> so the</font> homework is going to be both in the academic<font color="#E5E5E5"> market concepts and also on the</font> psychology of trading and some of the psychological things<font color="#E5E5E5"> at first glance it</font> may seem to be a little bit odd but

trust me these are very very important <font color="#E5E5E5">regardless of whether</font><font color="#CCCCCC"> you are</font><font color="#E5E5E5"> an</font> individual<font color="#E5E5E5"> trader trading at home or</font> <font color="#CCCCCC">you're an institutional trader or money</font> manager<font color="#E5E5E5"> if you are a very</font><font color="#CCCCCC"> short-term</font> scalper<font color="#CCCCCC"> or your</font><font color="#E5E5E5"> building portfolios for</font>

<font color="#E5E5E5">three to five to</font><font color="#CCCCCC"> ten year olds with</font> adjustments<font color="#E5E5E5"> these psychological skills</font> are still very very important for<font color="#E5E5E5"> our</font> functioning<font color="#CCCCCC"> in the markets and for our</font> analysis of the<font color="#CCCCCC"> markets will talk about</font> why that might be<font color="#CCCCCC"> as we go along</font>

so first of all who am<font color="#E5E5E5"> i and</font><font color="#CCCCCC"> ask the</font> <font color="#CCCCCC">half joking question who are you</font> but this first week is actually going to <font color="#CCCCCC">Center a lot around making you think</font> about that question because there's an <font color="#CCCCCC">old</font><font color="#E5E5E5"> market saying and you know a lot of</font>

these<font color="#E5E5E5"> old market scenes have a good deal</font> of wisdom behind them<font color="#CCCCCC"> there's</font><font color="#E5E5E5"> this old</font> market saying that says if you don't know who you are then the market is a very expensive place to find out<font color="#E5E5E5"> and</font> from the perspective of modern

psychology and some of the work that's been done by really great authors in this field<font color="#E5E5E5"> you</font> <font color="#E5E5E5">know we see that the psychological</font> skills the skills of matching<font color="#E5E5E5"> trading to</font> your personality<font color="#E5E5E5"> are absolutely critical</font>

so you need to spend some time thinking about that and<font color="#CCCCCC"> I will set you on a</font> direction that<font color="#CCCCCC"> I</font><font color="#E5E5E5"> think can be very</font> helpful<font color="#E5E5E5"> but first of all a little bit</font> about me and where I come from so<font color="#CCCCCC"> I had a previous career before</font><font color="#E5E5E5"> it was</font>

<font color="#E5E5E5">a</font><font color="#CCCCCC"> traitor and while</font><font color="#E5E5E5"> i was developing the</font> skills of trading<font color="#E5E5E5"> you could say learning</font> to trade but really<font color="#CCCCCC"> I think</font><font color="#E5E5E5"> of it is</font> more building the skills<font color="#CCCCCC"> that</font><font color="#E5E5E5"> learning</font> so<font color="#E5E5E5"> my previous career</font><font color="#CCCCCC"> I was</font><font color="#E5E5E5"> a</font> professional musician<font color="#CCCCCC"> it was a classical</font>

musician<font color="#CCCCCC"> have</font><font color="#E5E5E5"> keyboard</font><font color="#CCCCCC"> i played piano</font> and also some historical keyboard instruments harpsichord<font color="#E5E5E5"> pipe organ</font> <font color="#CCCCCC">I was also a composer so you know we can</font> speculate about the relationships between patterns and music and patterns

in the market there might be something there but it<font color="#CCCCCC"> that's that's information</font> and<font color="#CCCCCC"> that's something to think</font><font color="#E5E5E5"> about</font><font color="#CCCCCC"> more</font> <font color="#CCCCCC">musings I think</font><font color="#E5E5E5"> that anything we can</font> actually make use of here<font color="#CCCCCC"> but you do</font> need to<font color="#E5E5E5"> note that is where it came from</font>

<font color="#E5E5E5">and</font><font color="#CCCCCC"> I had a lot of experience as a</font> teacher of musicians also<font color="#E5E5E5"> and what I</font> discovered when<font color="#CCCCCC"> i started teaching and</font> training and working with traders<font color="#E5E5E5"> was by</font> golly a lot of the same techniques<font color="#CCCCCC"> a lot</font> <font color="#E5E5E5">of the same focus that is required to be</font>

a<font color="#E5E5E5"> top-level musician translates to</font> trading<font color="#E5E5E5"> and we'll talk about that later</font> this week's<font color="#CCCCCC"> the</font><font color="#E5E5E5"> third video and</font><font color="#CCCCCC"> I grew</font> up<font color="#E5E5E5"> in an agricultural town in a farm</font> community<font color="#E5E5E5"> so when</font><font color="#CCCCCC"> I started trading i</font> started trading agricultural futures<font color="#E5E5E5"> to</font>

me<font color="#E5E5E5"> trading</font><font color="#CCCCCC"> a stock</font><font color="#E5E5E5"> with would have been</font> something very exotic<font color="#E5E5E5"> but</font><font color="#CCCCCC"> I certainly</font> understood the cycle of putting something in the ground and depending on the weather<font color="#CCCCCC"> taking it</font> out of the ground and feeding it to

something else and that whole process really made sense to me so my first experiences<font color="#CCCCCC"> were agricultural futures</font> <font color="#E5E5E5">then</font><font color="#CCCCCC"> I moved on to a very short term</font> trading currency futures<font color="#E5E5E5"> and this was</font> not so long ago this was the

<font color="#CCCCCC">mid-nineties</font><font color="#E5E5E5"> and even at that point I</font> had a couple phone lines and<font color="#E5E5E5"> was on the</font> phone directly with the floor and my charting packages depended on<font color="#CCCCCC"> a modem</font> <font color="#E5E5E5">that was on another phone line so</font> technology<font color="#E5E5E5"> has evolved technology and</font>

your access to the markets today are just leaps and bounds ahead of where they were<font color="#E5E5E5"> 10 15 20 years ago certainly</font> <font color="#E5E5E5">and that's a real advantage and then in</font> over the course of my career so<font color="#CCCCCC"> I've</font> traded on my own and<font color="#CCCCCC"> I started</font><font color="#E5E5E5"> out as a</font>

retail trader with really no clue at all what<font color="#E5E5E5"> I was doing and was fortunate to</font> find some member of some mentorship and to find somebody who<font color="#E5E5E5"> several somebodies</font> who<font color="#CCCCCC"> kind of point me in the right</font> direction at least point out some of the

stupid things<font color="#CCCCCC"> i was</font><font color="#E5E5E5"> doing and</font><font color="#CCCCCC"> you have</font> had the experience of trading on all time frames from very very<font color="#CCCCCC"> short-term</font> scalping<font color="#CCCCCC"> too much longer-term depending</font> <font color="#E5E5E5">on your perspective but you certainly</font> holding things weeks and months<font color="#CCCCCC"> my been</font>

<font color="#E5E5E5">a purely technical trader</font><font color="#CCCCCC"> also have a</font> lot of experience with<font color="#CCCCCC"> modeling</font><font color="#E5E5E5"> both</font> with building fundamental models and with quantitative modeling<font color="#E5E5E5"> of both</font> technical and fundamental information and you know<font color="#CCCCCC"> I'm telling you</font><font color="#E5E5E5"> this</font>

because these<font color="#E5E5E5"> four skills that I</font> actively set out to develop<font color="#E5E5E5"> so that I</font> would understand how other people were seeing the market and and you know the idea that<font color="#CCCCCC"> i</font><font color="#E5E5E5"> think is</font> possible to be successful by focusing on

a very narrow specific set of market knowledge and maybe that was easier<font color="#CCCCCC"> 2010</font> 20 years ago<font color="#CCCCCC"> might be a</font><font color="#E5E5E5"> little bit more</font> difficult<font color="#CCCCCC"> now</font><font color="#E5E5E5"> it's possible but for me</font> <font color="#CCCCCC">and release for the way my mind works to</font> have the confidence that what I was

doing was right<font color="#CCCCCC"> i</font><font color="#E5E5E5"> really had to get as</font> many of the skills is my competitors <font color="#E5E5E5">that was basically</font><font color="#CCCCCC"> have was thinking of</font> it<font color="#E5E5E5"> you know</font><font color="#CCCCCC"> I knew that there were</font> people who knew things and<font color="#E5E5E5"> head skills</font> <font color="#E5E5E5">that i did not have and her new things</font>

that<font color="#CCCCCC"> i did</font><font color="#E5E5E5"> not know and</font><font color="#CCCCCC"> I set out to</font> rectify that so that was quite<font color="#E5E5E5"> a long</font> process but<font color="#CCCCCC"> worthwhile at</font><font color="#E5E5E5"> least for me</font> so along<font color="#E5E5E5"> the way</font><font color="#CCCCCC"> i have arrived at a</font> style that is highly technical<font color="#E5E5E5"> and what</font> I mean by technicals maybe a little bit

different than what other people mean by technical<font color="#E5E5E5"> because it's also very</font> statistically based and quantitatively driven<font color="#E5E5E5"> now having said that</font><font color="#CCCCCC"> I do think</font> that there is a place and an importance to inductive reasoning to intuition

those are real things<font color="#CCCCCC"> those are</font><font color="#E5E5E5"> areas</font> that i actually have and continue to devote some serious study<font color="#E5E5E5"> too but</font><font color="#CCCCCC"> there</font> perhaps<font color="#CCCCCC"> a little bit more difficult to</font> teach<font color="#E5E5E5"> though this week we're going to</font> begin laying the groundwork for that

intuition my style tends to be kind of at odds with a lot of what<font color="#E5E5E5"> a lot of the</font> things that other technical traders do <font color="#E5E5E5">and the reason for that is simply</font> because when<font color="#CCCCCC"> i put the tools many of the</font> tools of traditional technical analysis

under the<font color="#CCCCCC"> let's say the quantitative</font> microscope<font color="#E5E5E5"> we don't see an edge and</font> <font color="#E5E5E5">we'll look at that</font><font color="#CCCCCC"> and two</font><font color="#E5E5E5"> weeks the</font> third week<font color="#CCCCCC"> i'm</font><font color="#E5E5E5"> going to show you some of</font> that work and<font color="#CCCCCC"> i'm going</font><font color="#E5E5E5"> to</font><font color="#CCCCCC"> show you</font><font color="#E5E5E5"> why</font> <font color="#CCCCCC">i don't really use things like moving</font>

averages why I'm suspicious of support and resistance why don't<font color="#E5E5E5"> use candlestick patterns and</font> the reason<font color="#CCCCCC"> in</font><font color="#E5E5E5"> way to use volume</font> reason simply is that it does not test out<font color="#E5E5E5"> well from a quantitative perspective</font>

<font color="#CCCCCC">another question that I'm asked</font> frequently and<font color="#CCCCCC"> I've</font><font color="#E5E5E5"> been asked a few</font> times since I announced the decision to do this course is why would<font color="#CCCCCC"> I do</font><font color="#E5E5E5"> this am</font> <font color="#E5E5E5">I afraid that</font><font color="#CCCCCC"> i will somehow give my</font> edge<font color="#E5E5E5"> away</font><font color="#CCCCCC"> i do publish research and the</font>

chief investment officer of<font color="#CCCCCC"> Waverly</font> <font color="#CCCCCC">advisors and certainly will give you the</font> contact information<font color="#CCCCCC"> they're</font><font color="#E5E5E5"> published</font> research that I<font color="#E5E5E5"> you know</font><font color="#CCCCCC"> that frankly</font><font color="#E5E5E5"> I</font> feel very very good about<font color="#CCCCCC"> i think what</font> we offer our clients is a significantly

different vantage point than the other research out there and<font color="#E5E5E5"> so they can have</font> tremendous value if it's incorporated in your trading process your investment process and<font color="#CCCCCC"> I think</font><font color="#E5E5E5"> this is information</font> that's useful for short-term traders<font color="#E5E5E5"> to</font>

<font color="#E5E5E5">long-term fundamental managers</font><font color="#CCCCCC"> so you</font> <font color="#E5E5E5">know the question asked is why would</font><font color="#CCCCCC"> I</font> teach the techniques that I use<font color="#E5E5E5"> want</font> that somehow<font color="#CCCCCC"> i</font><font color="#E5E5E5"> rode my edge and the</font> answer that<font color="#CCCCCC"> they're there are two</font> answers<font color="#CCCCCC"> first of</font><font color="#E5E5E5"> all I like to teach and</font>

<font color="#E5E5E5">you know</font><font color="#CCCCCC"> i say this with</font><font color="#E5E5E5"> what I hope is</font> appropriate humility<font color="#CCCCCC"> i'm good at</font> teaching<font color="#E5E5E5"> this is something the skill of</font> teaching is something that<font color="#CCCCCC"> I have</font> actively cultivated through much of my life when I was a musician<font color="#CCCCCC"> i did not</font>

have to teach but I wanted to teach and <font color="#E5E5E5">I enjoy teaching and</font><font color="#CCCCCC"> i</font><font color="#E5E5E5"> found that the</font> process of teaching<font color="#E5E5E5"> made me much better</font> <font color="#E5E5E5">what I did</font> <font color="#E5E5E5">maybe not only a better teacher but also</font> better practitioner<font color="#E5E5E5"> because the kind of</font>

logical structure that is required for teaching and the kinds of questions that you get<font color="#E5E5E5"> the</font><font color="#CCCCCC"> kind</font><font color="#E5E5E5"> of feedback that you</font> get from good students and there's no room for imprecision there's no room for sloppy thinking<font color="#E5E5E5"> if you are if you're a</font>

teacher and so I enjoy that process<font color="#CCCCCC"> I enjoy the</font> <font color="#CCCCCC">has enjoyed the process of</font><font color="#E5E5E5"> leading</font> somebody from being a beginner to having a good skill set that they feel good about<font color="#E5E5E5"> and as for eroding the edge you</font>

know first of all the<font color="#E5E5E5"> materials out</font> there giving<font color="#E5E5E5"> numerous presentations and</font> <font color="#CCCCCC">i wrote a substantial</font><font color="#E5E5E5"> book</font><font color="#CCCCCC"> so the</font> information is out there and it<font color="#E5E5E5"> was</font> certainly something that<font color="#E5E5E5"> I thought about</font> <font color="#E5E5E5">i would suggest that what</font><font color="#CCCCCC"> i put</font><font color="#E5E5E5"> in</font><font color="#CCCCCC"> the</font>

book and what<font color="#CCCCCC"> I've put out in the</font> presentations<font color="#CCCCCC"> there's very little that's</font> new you know most of the ideas of technical analysis<font color="#CCCCCC"> are ideas that</font><font color="#E5E5E5"> have been built</font> over generations and you know the same

you know if<font color="#CCCCCC"> I see further because</font><font color="#E5E5E5"> I</font> stand on the shoulders of giants <font color="#CCCCCC">there certainly</font><font color="#E5E5E5"> are some</font><font color="#CCCCCC"> giants in the</font> history of trading and technical analysis<font color="#CCCCCC"> what perhaps is different with</font> my perspective is that<font color="#CCCCCC"> I think a lot of</font>

the<font color="#E5E5E5"> a lot of the valuable information is</font> also hidden<font color="#E5E5E5"> and a lot of</font><font color="#CCCCCC"> let's just say</font> superstition<font color="#CCCCCC"> to be kind a lot of things</font> <font color="#E5E5E5">so you know using the quantitative tools</font> of statistical analysis<font color="#E5E5E5"> to separate out</font> what really works and that's something

different that<font color="#CCCCCC"> I think that I bring</font><font color="#E5E5E5"> and</font> of course anybody<font color="#E5E5E5"> who puts this material</font> together<font color="#CCCCCC"> we'll do it</font><font color="#E5E5E5"> and a little bit of</font> a different way so first of all the materials out there I've already done it<font color="#E5E5E5"> but there is also</font>

particularly like<font color="#CCCCCC"> you'll see if you read</font> the published research<font color="#CCCCCC"> there is an</font> element of discretion and you know two people can look at the same set of information and come to slightly different conclusions because the way

different factors differently and<font color="#CCCCCC"> though</font> <font color="#CCCCCC">I certainly</font><font color="#E5E5E5"> am</font><font color="#CCCCCC"> not</font><font color="#E5E5E5"> always right</font> in fact<font color="#CCCCCC"> i'm right about half the time</font> and I'm very comfortable with that you know<font color="#CCCCCC"> we'll talk</font><font color="#E5E5E5"> about that in a</font> minute<font color="#E5E5E5"> to talk about that is in a week</font>

or so<font color="#CCCCCC"> certainly</font><font color="#E5E5E5"> not always right but i</font> do think that<font color="#E5E5E5"> there's a part of our</font> process that cannot be replicated<font color="#E5E5E5"> and</font> it's<font color="#E5E5E5"> not that</font><font color="#CCCCCC"> I'm holding back</font><font color="#E5E5E5"> it's not</font> <font color="#CCCCCC">their</font><font color="#E5E5E5"> stuff</font><font color="#CCCCCC"> that I'm</font><font color="#E5E5E5"> not teaching but</font> <font color="#E5E5E5">it's just you know that element of</font>

experience and street smarts and you know<font color="#E5E5E5"> you're certainly going through this</font> material will find<font color="#CCCCCC"> I hope</font><font color="#E5E5E5"> much value</font> that you'll be able to<font color="#CCCCCC"> to incorporate</font> your own process but<font color="#CCCCCC"> i don't think</font><font color="#E5E5E5"> that</font> <font color="#E5E5E5">really takes anything away from what I</font>

do<font color="#CCCCCC"> or from what I do with</font><font color="#E5E5E5"> Waverly</font> advisor so that's a question that has come up<font color="#E5E5E5"> and certainly will come up so</font> let's think a little bit more about the course goals<font color="#CCCCCC"> what I</font><font color="#E5E5E5"> hope to do here</font> <font color="#E5E5E5">through these weeks with you is first of</font>

all to promote critical thinking and objective perspective on technically motivated trading<font color="#CCCCCC"> we're going to sweep</font> out as much in precision as much superstition as much let<font color="#CCCCCC"> me see</font><font color="#E5E5E5"> let</font><font color="#CCCCCC"> me</font><font color="#E5E5E5"> use the word garbage</font>

<font color="#E5E5E5">as possible and you may well decide that</font> you want to bring some of the things that<font color="#CCCCCC"> I had discarded back in</font><font color="#E5E5E5"> you may</font> decide that they are important for you that they work<font color="#E5E5E5"> and that's fine but you</font> know at least for the beginning here<font color="#CCCCCC"> i</font>

would<font color="#E5E5E5"> encourage you as much as possible</font> <font color="#E5E5E5">to to try to approach this material with</font> a beginner's mind whether you've been trading for a few weeks months<font color="#E5E5E5"> for</font> decades<font color="#CCCCCC"> if you could come to this with</font> the idea that you don't really know what

a price chart is<font color="#CCCCCC"> and start over</font> <font color="#CCCCCC">I think</font><font color="#E5E5E5"> that that's a very good</font> perspective some people are afraid to do that because you have<font color="#E5E5E5"> the</font><font color="#CCCCCC"> University of</font> <font color="#CCCCCC">all</font><font color="#E5E5E5"> maybe you're afraid of the time</font> commitment maybe you're afraid if you

start over as a beginner<font color="#E5E5E5"> that you will</font> lose something but<font color="#CCCCCC"> i think people who</font> master any skill<font color="#E5E5E5"> realize that it really</font> depends on simple fundamentals<font color="#CCCCCC"> mastered</font> <font color="#CCCCCC">as perfectly</font><font color="#E5E5E5"> as possible</font> so returning to<font color="#E5E5E5"> the beginner's mind the</font>

empty mind to the empty state<font color="#CCCCCC"> that's a</font> <font color="#E5E5E5">very good place to start if you could do</font> that with me here at the beginning and let me challenge<font color="#E5E5E5"> you're thinking</font> let me encourage you to be very critical and very objective about trading ideas

and second goal is<font color="#CCCCCC"> nice a lead</font> participants<font color="#E5E5E5"> toward developing the</font> skills of profitable trading<font color="#E5E5E5"> one thing</font> that needs to be set up front here is this course cannot make you will not make you a profitable trader<font color="#CCCCCC"> I cannot do</font>

that nobody can do that<font color="#E5E5E5"> you can't even</font> <font color="#E5E5E5">do that certainly notebook</font><font color="#CCCCCC"> no course</font><font color="#E5E5E5"> no</font> indicator no system<font color="#CCCCCC"> there is nothing out</font> <font color="#E5E5E5">there that can make you a profitable</font> trader<font color="#E5E5E5"> anymore then let me use my</font> experience is anything out there that

can make you constantly skilled musician but what we can do is give you the tools and give you the guidance give you the direction and keep you on the path<font color="#E5E5E5"> to</font> developing<font color="#E5E5E5"> those skills yourself and</font> it's more<font color="#CCCCCC"> a process i</font><font color="#E5E5E5"> think in many</font>

cases of stripping away what is<font color="#E5E5E5"> an</font> essential and really learning where to focus your attention so that you can grow<font color="#E5E5E5"> these skills that you can develop</font> these skills and that's very important that actually probably should be girl

number one girl number three here lead participants along the path of<font color="#E5E5E5"> self</font> <font color="#E5E5E5">development by offering concrete self</font> development tools well<font color="#CCCCCC"> I don't</font><font color="#E5E5E5"> mean this in a touchy-feely</font> <font color="#CCCCCC">new-agey sitting</font><font color="#E5E5E5"> around holding crystals</font>

<font color="#E5E5E5">sitting circle</font><font color="#CCCCCC"> enchanting that's not</font> what we're talking about when i<font color="#E5E5E5"> talk</font> <font color="#E5E5E5">about</font><font color="#CCCCCC"> self-development i'm</font><font color="#E5E5E5"> talking about</font> the skills of discipline and focus and let's say<font color="#CCCCCC"> state management</font><font color="#E5E5E5"> being able to</font> recognize when you're about to make a

poor<font color="#E5E5E5"> emotionally driven decision and how</font> to interrupt that cycle being<font color="#E5E5E5"> being able</font> to<font color="#CCCCCC"> real</font> lies<font color="#E5E5E5"> where your objective perspective</font> might be colored by emotional inputs <font color="#E5E5E5">what you do about that</font><font color="#CCCCCC"> so that</font><font color="#E5E5E5"> that's in</font>

some sense<font color="#E5E5E5"> the goal of a lot of the</font> psychological work around trading and<font color="#CCCCCC"> I</font> want to give you some<font color="#CCCCCC"> maybe some</font> different tools and techniques that you haven't seen before<font color="#CCCCCC"> that</font><font color="#E5E5E5"> will help you</font> along that path<font color="#E5E5E5"> to $STREET and last you</font>

know<font color="#E5E5E5"> the this is only the beginning</font><font color="#CCCCCC"> we</font> can spend half a year together here and <font color="#E5E5E5">here we you could</font><font color="#CCCCCC"> sit beside somebody</font><font color="#E5E5E5"> on</font> <font color="#CCCCCC">the trading</font><font color="#E5E5E5"> desk for years and again</font> that<font color="#CCCCCC"> can't make you a traitor</font><font color="#E5E5E5"> but it</font> certainly can be a departure point for

your own growth and<font color="#CCCCCC"> for</font><font color="#E5E5E5"> where you're</font> going to end up through your own hard work and you know<font color="#CCCCCC"> your own growth</font><font color="#E5E5E5"> so the</font> course is primarily<font color="#E5E5E5"> three big parts and</font> the first is the foundation of profitable trading<font color="#CCCCCC"> those are three weeks</font>

<font color="#E5E5E5">we're going to talk about some</font><font color="#CCCCCC"> more</font> <font color="#E5E5E5">almost more theoretical background stuff</font> <font color="#CCCCCC">i think</font><font color="#E5E5E5"> part two is the patterns of</font> profitable trading and<font color="#CCCCCC"> I will go through</font> specific trading patterns<font color="#E5E5E5"> specific</font> market patterns<font color="#CCCCCC"> i will show you how</font>

these work<font color="#E5E5E5"> i will introduce them to you</font> and then all along here you've been<font color="#CCCCCC"> you</font> will be developing the skills to do your own testing to do your own evaluation of these patterns and you know<font color="#CCCCCC"> i'm not</font> going to<font color="#E5E5E5"> give you a system</font><font color="#CCCCCC"> i'm</font><font color="#E5E5E5"> not going</font>

to<font color="#E5E5E5"> give you a list of buy and sell rules</font> <font color="#CCCCCC">though here we'll talk about how those</font> can grow out of an understanding of these patterns and<font color="#CCCCCC"> yet we</font><font color="#E5E5E5"> may talk about</font> some more<font color="#E5E5E5"> some example</font><font color="#CCCCCC"> rulesets</font><font color="#E5E5E5"> but</font> you're going to have the techniques that

you're going to be able<font color="#E5E5E5"> you</font><font color="#CCCCCC"> want</font><font color="#E5E5E5"> to</font> learn about let's say<font color="#CCCCCC"> a</font><font color="#E5E5E5"> pullback pattern</font> and then you're going to be able to go and test that pattern through hundreds of occurrences in the market <font color="#CCCCCC">I'm going to encourage you to do this</font>

work by hand and depending on your available time<font color="#CCCCCC"> maybe a few hours a week</font> <font color="#E5E5E5">it could be 30 40 hours a week spent and</font> the testing and assimilation these patterns the more you<font color="#E5E5E5"> can do with the right kind</font>

of focus and we're going to talk about that<font color="#CCCCCC"> in these</font><font color="#E5E5E5"> first</font><font color="#CCCCCC"> weeks</font> the more you<font color="#E5E5E5"> can do with the right kind</font> of focus and the right<font color="#E5E5E5"> mindset</font><font color="#CCCCCC"> the</font> better off you are<font color="#E5E5E5"> and then</font><font color="#CCCCCC"> part 3</font><font color="#E5E5E5"> works</font> to put all of this together the skills

<font color="#E5E5E5">of profitable training and this is going</font> to talk about how how you take the patterns the pieces that you've learned and in very concrete ways how you combine those with some of the psychological skills and work toward

building a profitable trading system and then<font color="#CCCCCC"> I have a fourth part of the course</font> planned<font color="#E5E5E5"> which will call special topics</font> and<font color="#E5E5E5"> you see these listed here day</font> trading options fundamental analysis and those that<font color="#CCCCCC"> part four will probably i</font>

hope to get part<font color="#CCCCCC"> 1 2 & 3</font><font color="#E5E5E5"> done you know</font> fairly efficiently<font color="#E5E5E5"> in the course of you</font> know there may be going to be<font color="#CCCCCC"> 18 20</font> <font color="#E5E5E5">weeks and</font><font color="#CCCCCC"> i hope</font><font color="#E5E5E5"> to get those done</font> relatively quickly and then part<font color="#CCCCCC"> 4</font><font color="#E5E5E5"> may</font> lag<font color="#CCCCCC"> this</font><font color="#E5E5E5"> we could very well we could all</font>

be<font color="#E5E5E5"> burned out by the time we get to the</font> end<font color="#E5E5E5"> of</font><font color="#CCCCCC"> part three need a little break so</font> <font color="#E5E5E5">we'll just kind of see how it develops</font> it's also worth saying that before<font color="#CCCCCC"> i go</font> into this slide this material<font color="#E5E5E5"> is material</font><font color="#CCCCCC"> I've developed</font>

<font color="#E5E5E5">over many many years so you know when</font><font color="#CCCCCC"> I</font> wrote the book<font color="#E5E5E5"> my original concept for</font> the book and I realize this is a book that could not be written<font color="#E5E5E5"> was a book</font> that would take somebody from the very beginning to competent trading again it

can't be done in the context of a book but I made a decision to write a book that was written for a considerably more sophisticated traitor<font color="#E5E5E5"> for a traitor that</font> had a lot of the fundamentals a lot of the<font color="#CCCCCC"> intermediates I guess you would say</font>

<font color="#E5E5E5">and I always had intended to go back</font><font color="#CCCCCC"> in</font> <font color="#CCCCCC">to build</font><font color="#E5E5E5"> training course that would take</font> the material in the book and put it more in the context of beginning with that beginner and leading them through the skill development and along the way<font color="#CCCCCC"> I</font>

developed a course for<font color="#CCCCCC"> Waverly advisors</font> that we've used internally and trading in training<font color="#CCCCCC"> trading</font><font color="#E5E5E5"> interns and training</font> interns and this turned out to be a pretty rigorous very academic course included things like valuation

and you know<font color="#CCCCCC"> a lot of finance theory</font> probability theory and we're going to get into that and this particular course <font color="#E5E5E5">which</font><font color="#CCCCCC"> I have structured as a very</font> streamlined<font color="#E5E5E5"> very practical though</font><font color="#CCCCCC"> I'm</font> rambling<font color="#E5E5E5"> here</font><font color="#CCCCCC"> at the beginning quite a</font>

bit and there will be some theoretical work here<font color="#CCCCCC"> in these first</font><font color="#E5E5E5"> three weeks</font> <font color="#CCCCCC">once we get past this first part of the</font> course<font color="#CCCCCC"> going</font><font color="#E5E5E5"> to be very focused very</font> applied<font color="#E5E5E5"> so how do you get the most out</font> of this course well first of all commit

and take it seriously this material is free and it will always be free<font color="#E5E5E5"> and</font><font color="#CCCCCC"> I think in some ways</font><font color="#E5E5E5"> that's</font> <font color="#E5E5E5">a problem right</font> if you if you had paid<font color="#E5E5E5"> a few thousand</font> dollars for this course you would take

it very seriously<font color="#CCCCCC"> but</font><font color="#E5E5E5"> because</font><font color="#CCCCCC"> it's</font> online for free<font color="#CCCCCC"> it's going</font><font color="#E5E5E5"> to be very</font> easy to do it for a few weeks and then to fall away and I think realistically <font color="#E5E5E5">most people who take the course will not</font> make the commitment

let's just put that out there up front you know<font color="#CCCCCC"> I don't say that with any</font> <font color="#E5E5E5">judgment but most people will be unable</font> to commit to what we're doing here<font color="#E5E5E5"> and</font> if you<font color="#CCCCCC"> can't commit and can't work</font> consistently at this

you're<font color="#E5E5E5"> not going to be successful you</font> <font color="#E5E5E5">are going to get much out of it and you</font> know again I would encourage you to come to this with an open mind and if you definitely will have preconceptions<font color="#E5E5E5"> you</font> will have experiences that you bring to

the course<font color="#E5E5E5"> as much as possible try to</font> leave those behind<font color="#CCCCCC"> try to come with an</font> open mind i'm certainly not saying again that<font color="#CCCCCC"> I'm i'm</font><font color="#E5E5E5"> not saying that I'm always</font> right that this is the only way<font color="#E5E5E5"> but</font><font color="#CCCCCC"> I</font> want<font color="#E5E5E5"> you to try to see things a certain</font>

way and if you're always dragging<font color="#CCCCCC"> your</font> baggage<font color="#E5E5E5"> your past experiences your</font> garbage into the discussion into<font color="#E5E5E5"> your</font> thinking<font color="#E5E5E5"> that's just going to work</font> against you you<font color="#CCCCCC"> go pick all that stuff</font> up later<font color="#CCCCCC"> it'll be</font><font color="#E5E5E5"> there just drop it</font>

come to the course with an open mind and then go pick up what you left as much as you want<font color="#CCCCCC"> plan to work hard you what you</font> get out of this will depend to a large part<font color="#CCCCCC"> and what you put into it</font> and<font color="#E5E5E5"> i'm going to set up a structure that</font>

will allow you if you're so inclined to work very very hard here<font color="#E5E5E5"> there will</font> certainly be many weeks<font color="#CCCCCC"> where as I said</font> you could work 40 hours a week just on the material<font color="#CCCCCC"> on</font><font color="#E5E5E5"> the course</font><font color="#CCCCCC"> is probably</font> too much<font color="#E5E5E5"> for effective learning but it's</font>

there if you want to do it and there's a pattern<font color="#E5E5E5"> you know it when</font><font color="#CCCCCC"> i was</font><font color="#E5E5E5"> teaching</font> music<font color="#CCCCCC"> particulars teaching improvisation</font> and teaching<font color="#E5E5E5"> jazz</font> there's a<font color="#CCCCCC"> saying that</font><font color="#E5E5E5"> is very important</font> and very simple<font color="#E5E5E5"> and it goes through</font>

three pieces<font color="#E5E5E5"> assimilate imitate and</font> innovate<font color="#E5E5E5"> now</font><font color="#CCCCCC"> what's</font><font color="#E5E5E5"> that mean</font> and sometimes<font color="#CCCCCC"> its first two are switched</font> so assimilate and imitate<font color="#E5E5E5"> mean that when</font> somebody is teaching you a new way to do something or teaching you this is

specifically for musical improvisation <font color="#E5E5E5">definitely applies to market material</font> <font color="#E5E5E5">first of all</font><font color="#CCCCCC"> try to understand the</font> material<font color="#E5E5E5"> so you can replicate what is</font> being done and then try to assimilate it into your own thinking try to make it

your own only after<font color="#E5E5E5"> you have done that have you</font> earned the right to innovate and to try something new<font color="#CCCCCC"> if you're learning new</font> material<font color="#E5E5E5"> and as soon as you see an idea</font> your mind goes<font color="#CCCCCC"> both</font><font color="#E5E5E5"> goes off in another</font>

direction and<font color="#CCCCCC"> sell you</font><font color="#E5E5E5"> know what let's</font> look at this<font color="#CCCCCC"> let's look</font><font color="#E5E5E5"> at</font><font color="#CCCCCC"> this you know</font> <font color="#CCCCCC">many traders are inquisitive</font><font color="#E5E5E5"> creative</font> people<font color="#E5E5E5"> and that's the way our minds work</font> but it's not really productive here that's not what's going to work you want

to structure as much as possible so first you try to replicate<font color="#E5E5E5"> imitate then</font> you pull the material together<font color="#E5E5E5"> you</font> assimilated and only then do you think creatively and think about taking<font color="#E5E5E5"> in</font> your own<font color="#E5E5E5"> direction</font><font color="#CCCCCC"> try to do that as</font>

much as possible<font color="#E5E5E5"> try to hold off on</font> going off in your own direction<font color="#E5E5E5"> there is</font> <font color="#E5E5E5">a form and a message board associated</font> with this course and<font color="#E5E5E5"> i'm recording this</font> here before<font color="#CCCCCC"> i started the course this is</font> something<font color="#CCCCCC"> i hope the commute</font>

<font color="#E5E5E5">d is very successful</font><font color="#CCCCCC"> i hope this becomes</font> an important part of the course and that <font color="#CCCCCC">you know</font><font color="#E5E5E5"> we're reviewing this material</font> months down the road and we have built a core<font color="#E5E5E5"> a tribe a group of people group of</font> traders<font color="#E5E5E5"> supporting other traders and</font>

kicking some of this material around and building new perspectives on it and just <font color="#E5E5E5">so you know that's another reason that</font> I'm doing this course<font color="#CCCCCC"> i know</font><font color="#E5E5E5"> that i will</font> get feedback<font color="#CCCCCC"> i know</font><font color="#E5E5E5"> that you will show</font> me do ways to think about some of this

material<font color="#E5E5E5"> and</font><font color="#CCCCCC"> I know</font><font color="#E5E5E5"> that doing this and</font> I'm going to participate<font color="#CCCCCC"> in this</font> community<font color="#E5E5E5"> to you know I don't know</font><font color="#CCCCCC"> this</font> certainly something with a few hundred people<font color="#CCCCCC"> that could get very out of</font> control time<font color="#CCCCCC"> why so I limit</font><font color="#E5E5E5"> my time but</font>

<font color="#CCCCCC">i'm really looking forward to the</font> feedback and interaction and<font color="#E5E5E5"> the</font> <font color="#E5E5E5">feedback loops that we develop</font><font color="#CCCCCC"> and the</font> community is we take some this material apart of course materials will be as<font color="#CCCCCC"> I</font> said video you have reading to<font color="#E5E5E5"> have</font>

homework and<font color="#E5E5E5"> you have self work and very</font> very important that you keep a written record<font color="#E5E5E5"> and for me</font><font color="#CCCCCC"> you know you can do</font> this<font color="#E5E5E5"> alot of different ways</font><font color="#CCCCCC"> will talk</font> about journaling<font color="#E5E5E5"> but you can do it</font> electronically<font color="#E5E5E5"> for me</font><font color="#CCCCCC"> I'd like to have a</font>

nice notebook and write with a good pen <font color="#E5E5E5">I like the feeling of that pen on paper</font> <font color="#CCCCCC">it just turns on a different part of my</font> mind but however you do it whatever you do keeping some kind of written record <font color="#E5E5E5">starting today of your work in this</font>

course is going to be very very important and the slide will be at the back of every recording<font color="#CCCCCC"> here</font><font color="#E5E5E5"> are some</font> resources<font color="#CCCCCC"> I you know certainly encourage</font> you to check out my book the art and science of technical analysis

<font color="#E5E5E5">there's my author link to amazon</font><font color="#CCCCCC"> if you</font> do click and here's my blog and the <font color="#E5E5E5">website for this course if you do click</font> on book links from either of those<font color="#CCCCCC"> i get</font> a very small affiliate fee from selling for<font color="#E5E5E5"> amazon</font><font color="#CCCCCC"> so I would appreciate that</font>

also if you find the book valuable<font color="#CCCCCC"> i</font> would certainly<font color="#E5E5E5"> appreciate a review on</font> <font color="#CCCCCC">Amazon</font> that's the reality of the modern <font color="#E5E5E5">bookselling environment is that those</font> <font color="#CCCCCC">amazon reviews are very very important</font>

<font color="#CCCCCC">if</font><font color="#E5E5E5"> the book has been useful to you</font><font color="#CCCCCC"> you</font> know<font color="#E5E5E5"> it and if you're so inclined please</font> do leave a review<font color="#E5E5E5"> and again</font><font color="#CCCCCC"> this course</font> is not an effort to sell books<font color="#E5E5E5"> there's</font> going to be plenty of information<font color="#CCCCCC"> in</font> <font color="#E5E5E5">here and while</font><font color="#CCCCCC"> I think the book will</font>

enhance your experience in the course<font color="#E5E5E5"> if</font> you<font color="#E5E5E5"> decide to do the course without the</font> book<font color="#CCCCCC"> I there they're</font><font color="#E5E5E5"> not going to be any</font> holes you're not going to be left behind <font color="#E5E5E5">and</font><font color="#CCCCCC"> seeing us that's absolutely fine and</font> <font color="#E5E5E5">then last</font><font color="#CCCCCC"> if</font><font color="#E5E5E5"> you would be inclined to</font>

check out the research that<font color="#CCCCCC"> i published</font> <font color="#E5E5E5">daily</font><font color="#CCCCCC"> it's at Waverly advisors com so</font> <font color="#E5E5E5">we'll wrap up this first recording here</font> and<font color="#CCCCCC"> I think that's a pretty good place</font> to stop and<font color="#CCCCCC"> I will</font><font color="#E5E5E5"> see you on the next</font> recording



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