Techniques of an Astrotrader By Earik Beann Copyright © 2007 by WaveS9 Technologies Int Ine. Al Rights ReservedTable of Contents 1. Introduction Introdvetion, 3 ‘The manual you now hold represents over ten yeas of Astology, 9 refinement and research into what makes markets tick and how The Basis. is to use that information to grow atading account. Over that ‘The Declination System, 2 period of time, I Bought countess trading books and courses, Intraday Ast, 31 ‘tended seminars, and studied bodies of knowiedge from the ‘The Energy Model 2 ‘most technical, suchas artificial intelligence, tothe most Measuring Energy. 7 esoteric, such 2s numerology and the vibration ofthe spoken How to Enter . ut ‘word. I've been around the Block when it comes to studying How to Exit 124 trading methods, and overtime I've learned what works and Position Sizing 137 ‘what doesnt. Surprisingly, the reson most traders fi is not ‘The Unmeasurables. 143 due 10 lack of efoctve tools, but to faulty preconceptions ‘Conclusion and Next Steps 147 about what it takes tobe profitable and an ignorance of how to Appendices 150 ‘manage trading operations as a busines. When I was fresh out of college and starting out on tis path, Thad a very fixed idea about what it ook to make money in ‘markets Thought that you could just come up witha few rules, ‘maybe test them over a couple years of dat, then jump into the ‘markets and make millions overnight. [was so confident that | could crank out profits hand over fist that | went ahead and borrowed $25,000 on creditcard to fund my trading account and pay forall the varius things that i took to be a futures trader, Thad my $S00/momth data fod clicking away, my $2000 carting platform set up, my fancy $3000 black-box mechanical system issuing buy and sell signals, my broker programmed on my speed dialer, and Iwas ready tobe the next Jesse Livermore, Inthose days, the SSP futures market traded at $500 per Point, which meant that if you were trading one contrac, the smallest amount possible, you could make or lose $10,000 or ‘more ona big day. Ofcourse, I didn't really know what Iwas ‘doing, had everything totaly backwards, and in about a week or 3‘0 [had lost more than half of my tring account and was totaly disillasioned and desperate, tured out that markets weren't actualy as easy a8 T ‘thought and Iwas badly hurt. The next three years were very difficult for me. [had no job, huge eredit card debts, and my ‘only source of income was a market that seemed to spit Bie at re every time I touched it. But rather than giving up | went into serious research mode, figured a few things out, and managed to ‘maintain my precarious position. Eventually, I figured some things out, got my footing, pad off the debs, and went onto be ‘quite succesful, but those early days were the most difficult | hhad ever faced an Iwas totally unprepared for them, ‘Thee is actualy one benefit to strugaling and being onthe brink of disaster, and thats you become mentally very sharp. Ws like the street cat that has olive on his wits or perish. He's going to beable to find those mice to eat, and he's going to find ‘ways to atch them, because ifhe doesn, he's history. ve ben tht street cat and market knowledge was the mouse tha needed to catch to survive. ‘One ofthe things I learned very early on is that you can’t rely on conventional knowledge to succeed in markets. For thoteof you who have extensive trading ibraries, you know ‘what I'm talking about. How many of those books can you actually use to take money out ofthe markets? I've got Wo ot three bookshelves full of tading books, filed flor to ceiling, and I can’t say really use any of them in my actual trading, not {even the manuals that cost me over $10,000 each. They all sound nice, and have prety chars, but god luck going from the book o your compute sereen to actualy place trades that pit ‘money in your account, e's ot that all he books are faulty o misleading, it's that the books generally aren't writen by actual traders, and tend to ‘only focus on one small piece ofthe trading puzle. The myth in the industry is that ll you need t do is find good enty to and youl be all et. f you can count your Eliot Waves, and figure out where that 5! wave is, then you jst sell shor and the ‘money piles up nicely. Or if you can just get your technical indicators set upright, they'l get you in at tops and bottoms of swings and you'll be master of the universe. The truth is that ‘You can catch the tops and bottoms, and you ean do so with imcredible accuracy, but you can stil lose money. This is ‘because market analysis and entry signals are only a piece of, wha ou ned (very smal pee) 1 conic pron he markets, Since [run Waves9 Technologies, I get to talk ta lot of ‘traders during the day-—many of them beginners—and Lam, ‘continually reminded ofthe assumptions we bring to the game. For those who might not know, WaveS9 isa charting and analysis software program that | developed, and all ofthe chats inthis book have been created with it It contains various technical indiators and tool that traders can use to locate low rise trading opportunities, and in the right hands it canbe very powerful Anyway, Loffera free 30-day trial forthe program, so lots oftraders take it for atest drive, then come back and tell me What they think. Strangely, a surprising numberof traders cancel because they saw a top ora bottom inthe market that Waves9 failed to pinpoint for thm. “I really like your indicators, but ‘they missed the big move today, so 1 want to cance.” 'm ‘Usually very courteous about it, thank them fr trying the Software, and just cancel them out. They expect to catch every Single move that the market makes, and that's jus plain 5