The most direct route to this level of trading confidence is through the process of actually placing trades and experiencing their outcome. Real trading is often the most effective means for understanding the nuance involved in the successful use of these techniques, and more importantly, how one's own psyche reacts when a trade is not successful. Unfortunately, learning in this fashion can become a very expensive process - a luxury that only the very deep-pocketed can afford. A more practical approach to gaining initial trading experience is to undergo an extensive amount of practice. Practice is the process of rehearsing our abilities to identify the market setups stressed throughout the course so as to enable quick recognition and to bolster our confidence in taking appropriate action when the timing is right. Significant effort should be dedicated to this process before real dollars are risked. Extensive practice leads both to shorter response times in the real trading environment and to an overall level of increased confidence.
The practice techniques discussed below are most successful in the high volume, liquid markets. It is recommended that the student concentrate on either 30 year T-Bonds, equity index futures, or large volume Nasdaq stocks for this exercise. Although the trading methods taught in this course are successful in just about all markets within all timeframes, the most productive practice sessions will come about by concentrating in those markets that have the degree of liquidity and volatility necessary for frequent pattern setups.
