When market move in a linear straight line, all one needs is a ONE simple rule to implement.
Unfortunately we are dealing with a DYNAMIC EMOTIONAL market that trend at different momentum and cyclical period. This can either make or break a system.
Question is how do we move in such a market? Can we simplify the process? How can we use our daily experience in this? Even if put together a perfect or near perfect strategy, the biggest challenge and enemy is YOUR SELF ... your mental. The doubts will remain the GREATEST or mother of all enemy.
1. The system that ANTICIPATE will most likely be EARLY in flashing the signals and if one acts upon such notices, it means we will be early before the trend changes. This calls for a deep pocket and ones ability to remain mentally stable.
2. The system that FOLLOWS will NEVER be early but rather slightly later or late since it does NOT anticipate but flashes signal AFTER the change has happened!
Once one decides which of the (1) or (2) to adopt or HYBRID (1) and (2), than one must understand the rules of the game.
A DYNAMIC EMOTIONAL market means one is going to see and experience the different momentum through out. For the ease of analysis, I will refer to STRONG MEDIUM and WEAK momentum. I normally classify things into 3 categories for easy analysis and management.
SHORT TERM, MEDIUM TERM and LONG TERM
STRONG, MEDIUM and WEAK MOMENTUM
PRIMARY, INTERMEDIATE and SECONDARY WAVES
Is it possible that ONE rule for 3 different conditions? Yes it is possible BUT one need to be prepared to accept the opportunity cost. Why? It is most likely the ONE rule is only suitable for ONLY one situation with unprepared strategy for the other 2 situations.
Ideally, one will be able to develop a HYBRID system that warns before it happens and CONFIRM when it changes
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