Chart is always right

I often get a question about other markets I follow during the day, with goal to predict potential reversal points for ALSI. As far as I see, beginners are doing exactly this - They move back-and-forth between Dow futures, S&P futures, FTSE chart, ZAR chart, US market news, Bloomberg, CNBC, etc. trying to find a reason, or two, for particular market behavior.

So, let’s get this right first time: All my decisions about entries and exits are based only on ALSI chart and nothing else. Chart always knows where it wants to go and why it wants to go there. Our task, being traders, is not to know why market is going up or down, but to jump into developing trend, and ride it as far as possible.

This morning I left a link (on twitter) to some external blog that explains what the market is doing in US. Usually, I check several blogs from US every morning before our market opens. There are very clever traders out there and these traders are preparing useful charts free of charge. These charts I check just to see, in context, what we can expect as ALSI gates open. And, at the end, when our market opens, there is only one valid chart and that is the chart you trade. 

If you are starting now, I would suggest you to concentrate on the chart that you are trading. Everything else is just noise that will contribute to mismanagement of your entries and exits; that will push you to overtrade; and make you skip good trades and get into bad ones.

Trade well.