Trade Like a Spartan Warrior
Joseph Russo
ElliottWaveTechnology.com
Mar 19, 2007
Making a conscious decision
to trade financial markets is the same as engaging in battle
with the most cunning and merciless of adversaries. It is not
only possible, but also essential to engage markets with the
skills and instincts of an elite warrior. Odds of success can
be insurmountable. In order to prevail, one must be equally cunning.
Before committing to battle, it is essential that one is adequately
prepared. In this article, we will outline three essential attributes
one must acquire prior to engagement.
300 is a 2007 film adaptation of the graphic novel
300 by Frank Miller, about the Battle of Thermopylae in
480 BC. In this battle, an alliance of Greek city-states
fought the invading Persian Empire army at the pass of Thermopylae
in central Greece. Vastly outnumbered, the Greeks held back the
Persians for three days in one of history's most famous last
stands. As a city-state devoted to military training, Sparta
possessed the most formidable army in the Greek world. The Spartan
Warriors possessed extraordinary strength, courage, and ingenuity.
When brute strength did not suffice, they used their wits to
prevail over their adversaries.
Short-term S&P traders
utilizing advance market guidance from Elliott Wave Technology's
Near Term Outlook have captured a minimum of 130-pts profit in
just 3-weeks time.
The conservative profit estimates
summarized in the above chart reflect the Spartan nature in which
Elliott Wave Technology's adept guidance breeds success in applying
the three essential attributes necessary to prevail in a highly
adversarial trading environment.
DEVELOP STRATEGIES WHICH
IDENTIFY SPECIFIC TRADE PARAMETERS
First, one needs to
develop a well-conceived trading plan or tactical strategy. Such
plans should be consistent with ones' objectives, time horizon,
account size, and tolerance for risk. It is essential that traders
not confuse "planned strategy" with technical analysis,
chart study, or any other method by which market direction is
forecast. Although entry triggers may spawn from such analysis,
by no means does such analysis comprise a complete trading plan.
Strategy and tactics must also include Spartan-like management
of a position once elected. As such, having a clear exit strategy
prior to engagement is of vital importance. The key question
one must repeatedly answer in sizing up and managing a trade
is "what if." Preparing in advance how one will respond
should price action exhibit x, y, or z, is the cornerstone of
a successful trading plan.
USE PRUDENT RISK & PROFIT
ASSESSMENTS TO GOVERN STRATEGY
Before placing an order,
prospective trades must first pass a risk and profit assessment.
Outlining entry, exit, stop loss, and profit target contingencies
in advance, allows traders to determine if various outcomes are
within appropriate boundaries relative to the specific risk and
profit management guidelines which they have decidedly embraced.
Once passed, and a position opened, the battle is on. In the
heat battle, pondering over chart analysis must now take a distinct
back seat to a heightened sense of tactical awareness. In placing
central focus on the "trade plan as a whole," traders
minimize emotion immensely. A newly elected trade is merely one
of many that will comprise and define overall success of ones'
"plan." Once a trade is "on", it is essential
to focus on imposing the cold and calculated protocols that now
govern trade plan tactics.
SECURE A COMPETITIVE ADVANTAGE
FROM WHICH TO PLAN AND EXECUTE
The last essential element is to acquire a consistent competitive
advantage. Competitive advantage is some form of adept navigational
guidance, knowledge, or other reliable method by which one (more
often than not) correctly anticipates market direction. With
the third essential element in place, one can now develop, assess,
and execute tactical trade strategies with the highest level
of confidence and profit.
Elliott Wave Technology's
Near Term Outlook recap for Friday March 9, 2007
Above is an example of our
March 9 tactical guidance amid recently changing market conditions.
In the past month, Elliott Wave Technology has relayed guidance
for five outstanding short-term trading opportunities in the
S&P 500 index. Having access to this competitive navigational
advantage, our clients had adequate time to develop their trade
strategies, mitigate risk, and profit accordingly.
Elliott Wave Technology's
Near Term Outlook guidance for Wednesday March 14, 2007
The chart above illustrates
outcome of previous guidance, and new directives for the March
14 guidance. After enduring another Tuesday air pocket just one
week after the Dow's 400-pt loss the previous Tuesday, Elliott
Wave Technology's short-term guidance for Wednesday, March 14,
was preparing broad market index traders to anticipate a fresh
low for the move. We suggested in advance, that clients evaluate
contrarian long side trading opportunities for all of the major
equity indices. Before Wednesday's opening bell, a portion of
our concise guidance for the S&P was the following:
From Elliott Wave Technology's
Near Term Outlook for Wednesday March 14
"A marginal new low testing the S-3 trendline should be
anticipated as part of a near term basing process. However, an
outright failure at S-3 opens the floodgates to a move toward
1282. Although a contrarian, bullish stance is most appropriate
short-term, we must respect the possibility for another big fall-out
ahead. Any fresh longs initiated upon a marginal new low on Wednesday,
should consider risks associated with trailing initial sell stops
sufficiently below S-3 to allow the market room enough to base."
Friday's follow
up report included the following:
"Navigational guidance cannot get much better than the above.
What lies ahead for the major equity indices is up for grabs
at this stage. If you positioned long basis Wednesday's guidance,
consider taking profits outright, or trailing a profit-locking
stop. Whatever you do, do not let the hard-earned bounty slip
away. Take a breather, pat your self on the back, and celebrate
if you must. Should you remain "engaged," stay sharp,
keep calm, and remain on plan. As with the Dow, too many short-term
possibilities lie dead ahead which prevents us from issuing high
confidence short-term guidance at this time."
In the balance of Friday's
report, we outlined very explicit guidance for three immediate
price path contingencies for the benefit of those clients still
engaged in the market.
In closing, it is important
to understand that we do not predict markets; instead, we take
ownership of the dynamic price action as it unfolds and do so
in such a way that no black box algorithm could possibly match.
Doing so impartially, allows us to anticipate direction then
formulate astute and unrivaled guidance based on the daily evolution
of price. As further evidenced in this presentation, the resultant
competitive edge is most compelling.
Joseph Russo
Publisher & Chief Market Analyst
ELLIOTT WAVE TECHNOLOGY
website: www.elliottwavetechnology.com
email: joe.russo@elliottwavetechnology.com
321gold Ltd
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