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INTEGRATING YOUR PERSONAL SOFTWARE PROGRAMS
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Let me emphasize that I believe these next few pages are the most important pages in this entire book. Please spend some time understanding (controlling) and practicing this process. It is lethal to losses. Take this advice with you every day in the market:

IN A NO-RISK STRUCTURE

I CAN HAVE FUN AND "HAVE FUNDS"

Through the years, working with our own personal trading and with thousands of full-time traders, we have developed a technique that will ensure that you can trade at Level Four and Level Five. As stated above, you have four different software programs and you can run only one at a time. You can, however, switch from one to the other quite rapidly. Each has its own unique capabilities, and we want to make full use of all of them. We need all the help we can get in trading the markets.

In a No-Risk

This segment means using the fear program to make whatever trading decisions fit into a maximum profit-minimum risk structure. Here is how you do it. First, use it outside the market trading hours, either the night before or early in the morning, before the market opens. Simulate a catastrophic day in the market. You know your present positions and, from using the Profitunity Trading Partner in Chapter 10, you already know where your stops are or should be. From your current positions, you can easily figure what your total loss would be if every position is stopped out. The dollar-and-cents amount is quite important to your planning.

Suppose your catastrophic stop-out figure is $6,500, which means that if everything is stopped out tomorrow, your account would be down by $6,500. If that does in fact happen, how will you feel tomorrow night while planning the next day's market activity? If your perspective will be upset and you will be too worried to sleep tomorrow night, your risk is too great. You must cut it down on the open by getting out of some of your current contracts. Let's say your pain limit is $4,000. Your task is clear: you must get out of $2,500 risk on the opening tomorrow.

Let me repeat, for emphasis: the most valuable commodity you will ever deal with is your perspective. Whatever else happens, you can't afford to lose that. A no-risk situation does not mean that you can't lose money. It is a psychological no-risk: you can't lose your perspective.

Structure

During this part of the analysis, you first want to determine your most likely position relative to the Elliott wave. Methods of doing this are explained in Chapter 7. Once you have determined your position in the Elliott wave, you then want to move up one significant time frame to determine your "air bag stop/' Next, you determine what rhythms the market is in and then your exact entries and exits using the initiating and responsive fractals. If you decide to become even more aggressive, you can plan on trading the Profitunity windows and greens and squats. With a bit of practice, you should be able to analyze a completely new chart and know what your position should be on each bar, where to stop, where to double up, where to stop and reverse, and when not to trade—in less than 10 seconds. This technique will amaze you, especially if, like me, you have in the past spent hours each day on technical analysis.

Up to now you have been using your left hemisphere. At this point, your work is really over. Go out and have some fun. It actually is imperative that you stop working now. Go to bed, rest well, and don't think about the market. You are ready to trade tomorrow.

When tomorrow comes and you look at your screen, plug in the next line with confidence.

I Can

These two words represent the self-confidence you have because you know where you are and where the market is (via Elliott wave and fractals). Part of your confidence comes from your knowledge of structure. Besides, you know that you are in a no-risk position because you constructed your trading strategy to make this so. You are now trading from the core and the right hemisphere. There is no struggle, and the only thing left to do is to have fun trading. In fact, if you are not having fun, you are still in the left hemisphere and you shouldn't be trading.

Have Fun and "Have Funds"

Trading is much more like riding a bicycle or dancing than taking a math test. When you go dancing, you don't rush across to the floor to see how soon you can get there. You are there for the enjoyment and pleasure of living at that moment. If your confidence is built on understanding (controlling) the underlying structure of the market and yourself, you don't need to be greedy. The markets will be there tomorrow and next year and probably next century, if history is any judge.

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