The order of Thinking and Focus that must be addresses prior to starting the Day is as follows:
Acknowledge the EGO - Determine that we will Not rush the open or allow Mr EGO to take control of our actions. We are NOT trying to be Right about the outcome. We have No expectations for each outcome. We will be observers of our thoughts and maintain a positive focus for the day.
Determine Background Strength & Weakness -This is the Very first thing we Must Determine before going any further in our analysis of the morning potential. This includes the Globex and Pre-Open, taking into account any New S/W that appears after the previous days close.
Determine Most Recent 4500 Tick Trend - Use the Bollinger Band Channels to guide the direction. Be sure it MATCHES the Strength or Weakness. If not, then stay out. Conflicting Trend and Background means choppy markets and indecision. This is a High Risk Environment!!
Qualify Sequence - This has proven to be a bit tricky if we don't follow the rules Specifically. If the Sequence is not VERY clear then pass on it, chances are we may be creating or confirming a bias. This usually leads to Unqualified trades. If we notice that we have entered an unqualified trade then we should EXIT Immediately!! Don't allow an Unqualified Trade to linger at all!!
Managing the Risk - Management is Not constantly moving stops around But IDENTIFYING LIKELY AREAS WHERE STOPS MAY BE. Specialist will often go to where the stops are prior to moving into intended direction.
