Page 30 - Trading #101 Course – Part One: Trading Basics

TRADING #101 COURSE – PART ONE: TRADING BASICS /2017-10-06

Chapter 5:

The Reality of Price & Volume

There is no greater reality in trading than price and volume. These are facts, not
opinions, and they cannot be distorted or misrepresented.

They are what they are and “what you see is what you get”, as Flip Wilson used to say.

WYSIWYG – isn’t that an acronym in computer land? Anyway, what you will begin to
see as you work with me is that with reality-based trading price and volume are your
most valuable tools in reading the market.

Why are Price and Volume Reality?

Price and volume are the reality of the market; everything else is a man-made
measuring device that will most likely form destructive opinions. Some people believe
that measuring devices form a road map.

However, do we have a road map of our life in advance of our life? I don’t think so. We
may have a plan or fantasy about where we want to go, but until it happens, it is still just
a fantasy.

The Case for Simplicity in a Trading System

The number of trading indicators, oscillators, and information sources available today is
astounding. The reality is that “less is more.” If you allow yourself to be inundated with
unnecessary information and clutter, you will be drawn further away from the “truths” of
the market—price and volume.

Simplicity will be the secret to your success.

This course will help you simplify your trading and add structure, which helps to lesson
anxiety that can lead to emotional trading.

Let me tell you a little about my trading and how I came to develop the methods I use
with my reality-based trading approach. My story may even resemble some of your
trading experiences.

When I started, I read every book and examined virtually every trading system
imaginable. From oscillators to powerful neural network computers, I studied it all. The

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