CBOT:ZLZ2021   Soybean Oil Futures (Dec 2021)
8.27.21 ZLZ2021 Fussy Logic Part 2: Alright looking to call this fuzzy logic part two but really this is about markets that have complex algorithms which will work, and each one may give the advantage to the buyer or the seller. To some degree multiple algorithms are correct and their magic will be associated with the initial trade location. One possible algorithm could be associated with the way markets fill gaps. I personally believe that there is a certain algorithm to markets at support lines and resistance lines and that it is not particularly difficult to understand, but the trade decision may be more complex in practical terms. I would recommend listening to part one, and then listening to part two. The underlying message is that it is probably more advantageous to identify some of these subtle behaviors even though this adds a little bit of complexity and potentially complicates your trade decision. My belief is that from a longer timeframe perspective if you don't freak out at more observations and more variables, it will actually help your trading... If you give it time and patience. Some people require less information and that matters. I am okay with more information, but I can tell you that my trade decision boils down to very few variables at the point of making the trade decision. In other words I would like to think I take in the broader scope, I honed in on the more recent behavior, and then I have relatively wanted to variables to decide my trade decision. I can tell you this, if I am clearly not sure of the market, and I see no particular advantage to the trade that I am considering, my shut off valve automatically defaults to the decision not to take the trade, at that point I absolutely let it go. It's the only way for me to reduce unnecessary stress. I'm in or I'm not, and of the story. There is another issue that one of my students has. It is a ubiquitous issue for traders, and that is that she'll get into a trade at times and she will be up all night watching that trade. This is a very big problem, and it can lead to burnout... even though you are trading profitably. We will talk about this on future videos.
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.