Come to the monthly meeting: But leave your ego at home

Yesterday Thomas Anthonj of JP Morgan Securities, Ltd. was invited back to tell STA members more about his successful systematic trading method which is based on Elliott Wave theory and Fibonacci applications.  As a foreign exchange strategist for the firm his focus was on currency pairs, with practical current day examples which I’m sure were of great interest to many.

IMG_0618But before turning to his interesting charts, he reminded us of the importance of mastering emotions when trading.  That ‘the market’ does not give one jot about us and whether we make money or lose the lot in one fell swoop.  That we have to overcome always wanting something and the fear of not reaching it.  He pointed us in the direction of Manuel Schoch’s Time Therapy which teaches us how to focus on the positive aspects of our life rather than the difficulties.

He explained how, roughly at the age of two, a toddler begins to get ideas about the self as a separate being which ends up becoming ‘the human character (ego) which is a disturbance of the psychological equilibrium’.  The concern for how we look is something which traders ‘must de-activate because emotion kills success’, and because ‘fast feelings are the quickest way to Hell’s Kitchen.  Ego is a permanent defence mechanism’.  Do look closely at his T-shirt!

On to his charts, mainly weekly candles going back five years or so where he believes that ‘all human activities have three distinctive features – pattern, time, and ratio – all of which observe the Fibonacci summation series’.  Detailed examples were presented of some fairly minor currency pairs like US dollar/Swedish krona, Hungarian forint, Israeli shekel and Malaysian ringgit – to the Korean won against the Japanese yen.

He has three trade concepts, Type I which starts either at the beginning of Elliott Wave 3 or Wave 4, Type II (with a tight stop) to catch Wave 5, and Type III which catches Wave C.

Rounding off with a hilarious video clip of a cut-rate psychotherapist telling his very disturbed patient, ‘stop it, stop it, STOP IT!’  was a lesson to us all.

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Posted in Finance, Markets, STA news, Technical Analysis, Trading, Trending
Disclaimer

The views and opinions expressed on the STA’s blog do not necessarily represent those of the Society of Technical Analysts (the “STA”), or of any officer, director or member of the STA.

The STA makes no representations as to the accuracy, completeness, or reliability of any information on the blog or found by following any link on blog, and none of the STA, STA Administrative Services or any current or past executive board members are liable for any errors, omissions, or delays in this information or any losses, injuries, or damages arising from its display or use.

None of the information on the STA’s blog constitutes investment advice.

About Nicole Elliott

Nicole Elliott

A graduate of the London School of Economics and Political Science (BSc Social Psychology) Nicole Elliott has worked in banks in the City of London for the last 30 years. Whether in sales, trading or forecasting technical analysis has always been the bedrock of her thinking. Key expertise lies within all areas of treasury: foreign exchange, money markets, fixed income and commodities.

She has also added to the body of knowledge of the industry writing the first western book on Ichimoku Cloud Charts. Strong media links and a cult following are due to her prescient calls on the markets and often entertaining format.

Nicole can be contacted at trending@sta-uk.org

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