$29.95/PDF download 111 pages. Volume One: Acquire Your Skill includes detailed instructions on how to set up a lines day-trading screen and analyzes the lessons and the psychology that guide a lines trader.

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SKU:	Volume One

Price: $29.95

$29.95 111 pages, Adobe PDF

Adobe PDF download/111 pages/Format 5 1/2" x 8 1/2"

The lines approach is for intermediate-level and advanced-level traders. Are you intrigued by the power of intermarket analysis? Have you ever used time-of-day analysis? Have you ever seen linear regression channels at work? The lines approach is a way of looking at markets. The approach is a strategy that helps you understand how markets work. Price follows linear regression channels. Markets react on an intermarket basis. Trading decisions are often based on the time of day. See for yourself.

The job of Volume One is to familiarize you with the thinking behind the lines approach to the point where that thinking becomes second nature. Volume One features a detailed look into 5 day trading basics, 10 day trading lessons and solutions to 5 major trading mistakes. It then shows these basics, lessons and solutions in action using 20 days of actual day trading diary entries (October 02, 2006 through October 31, 2006; this is the period when I first articulated the lines approach; markets move the same way today). Volume One also includes detailed instructions on how to set up a lines day-trading screen.

Volume One is deliberately text-heavy (there are only a few charts). It is designed to immerse you in the mental rather than the visual concepts of the lines approach. Intermarket analysis in particular is a hard skill to acquire. It is vital to have a mental grounding before proceeding to a visual grounding (this will become apparent when you see my ongoing diary entries). As you study each of the 20 trading days, you will find yourself absorbed by the action as if it was today. The 5 1/2" x 8 1/2" format makes easier to see two pages side-by-side on your computer screen. This view is important to getting the most from studying each diary entry.

This is an excerpt from Volume One. It presents the first of the 5 basics:

"The advice to keep a trading diary used to piss me off. Year after year, I tried so many variations of a diary I became numb. I would try a new diary format, keep it up for a few days or weeks, feel terrific about my progress, then run into a wall, and scrap the thing. I would wait then start another variation. Keeping a diary began to eat me. I fell over myself trying to enter my trades. The ways I described what I saw the markets do was superficial or uninformed or inconsistent or all three. I would rewrite diary entries. When I re-read my entries later, they made no sense. I learned nothing. So are diaries a waste? If you are a made-trader, not a born-trader (not an instinctive, indefatigable trader), then you must, must, must keep a diary. There, I said it. The problem is not in keeping a diary but in what the diary is asked to do. I now realize that diaries fail when they are asked to perform too many roles. The role of a diary, I have concluded, is to effectively, consistently and succinctly record what I see a market do. That is all. I no longer enter my trades. I say write a real-time teaching-oriented diary. Now I use my diary to teach me about the general and specific structure of what is happening as it happens. I focus on how I think, not on the trades I make or the money. When good analysis is second nature to me, the trades and money will come. Each trading day, if my analysis is something I can routinely and profitably act on, then I should be able to force my trading to piggyback my analytical skills. I will pull my trading up, not my diary down. My problems surface when I have to pull the trigger: enter and exit a trade. One of my goals is to work around my weakness as a shooter by focusing on my strength as an analyst. The diary helps."

NOTE: My current 3-page daily diary entries, my "Michigan variation", are a composite. I changed to this 3-page format on June 24, 2010. On pages 1 and 2, I focus on my analysis of the markets. I do not, as a rule, discuss the trades I make. This allows you, the reader, to study a day without being influenced by my trades and I do not allow my trades to compromise my analysis. On page 3, I focus on how I traded my simulated account. I discuss the day only in so far as it affects the trades I make. This allows you, the reader, to better appreciate a day's action (in terms of the lines approach) and allows me to focus on my trades without having to describe the entire day's action. In other words, I separate the jobs of analysis (pages 1 and 2) and trading/shooting (page 3). Merging these jobs would create an unusable mess (see above). Separating these jobs (using a composite) creates a usable "whole".

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