First a quick peek at the market impulse table:
I just recently realized a lot of my posts are for longer swing positions which sometimes require several weeks to setup and not quick day trades. To be a little more thorough, I will try to post follow-ups on the same symbols a couple of weeks after I mention them the first time. The first follow-up will be for LTD, a Wallstrip symbol I wrote about a month ago.
MCD (McDonalds Corp) is featured on Wallstrip today. I wanted to send this out earlier but the day took over the schedule. MCD has been trending up since early in 2003 and on 01/17/2006, MCD hit its 260 days high of 45.06. After a short correction, the price is now re-testing that last resistance, currently trading around 44.73.
On the weekly chart:
I have been keeping an eye on BGO recently. BGO is Bema Gold Corp, a Gold mining company. A quick look at the weekly chart reveals BGO had a nice uptrend for a good part of 2005 and half of 2006. Mid-2006, the price started consolidating and bounced between a support at 4.25 and resistance around 6. The price currently sits near the resistance and the weekly impulse signal has been green for several bars.
Lesson 3 of Dojo Wisdom is inspired by Buddhists teachings who remind us to always keep a beginner’s mind because a beginner’s mind is more open and generally more accepting. Whether we apply this to accounting, martial arts, child care or trading is up to us. Everybody is always rushing to become “masters” for the reward associated with it – prestige and status. A master trader will be respected (and usually paid) for his advice and his opinions. But even for masters, it is important to keep a beginner’s perspective in mind. Masters will sometimes miss the obvious because they have gone over the same motions and used the same systems thousands of time. The beginners will be more attentive to details because of the learning process. The goal is to reach the expertise and knowledge of a master while keeping a trader rookie mind.