The Three Types Of "Now".

What is "Now"?

The following passage is taken from The TAD principle. I first heard about this concept through TraderX's site some time ago. I thoroughly recommend it.

"The past and future don't exist. Your mind works hard to convince you that they do, but in reality the past and the future are simply thoughts happening right now, in the present moment.

Does that mean you shouldn't enjoy memories of things that happened in your past? Not necessarily, but there is a fine line between enjoying a memory and rejecting the present moment in favor of clinging to times gone by:

"If only things could be that way again."
"I wish we could go back to those days."
"I was much happier then."

It is easy to turn what you label a "positive" memory into something that gives rise to regret, sadness, or bitterness. Such is the reality of past and future thoughts. When you project into the future, you create stress, anxiety, and worry, as well as fears over what "might happen". And reliving the past creates feelings of guilt and resentment, as well as non-forgiveness of others and yourself.

When we are pulled out of the present moment, we create suffering for ourselves. It's ironic, because you are only here now - it is the only moment you ever have. But, if you aren't mindful of your thoughts, you will spend "now" lost in stories of the past and the future."

We spend so much time thinking about the past (a "now" which we have already experienced) and the future (a "now" which we have yet to experience) that we get sidetracked from thinking about the true now.

How many times have you practiced a conversation that you expect to have in the future? Or tried to mentally run through what you did wrong in a past "now" so that you'll be better prepared "next time"? (By the way, it'll NEVER be the way you imagined it!)

Now is so infinitely small that it can't be measured but, paradoxically, it draws itself out in to infinity. 

Mastering the art of doing the best we can with the present moment will, by default, take care of the future we worry so much about because our now will eventually be that future. Likewise, it'll take care of any "past regrets of the future" because your futures' past will have once been the present...and you're always taking care of that.

The Mighty Momo!

This pattern has formed the basis of the vast majority of trades that I've taken over the last 5 years and counting. Whether it be a derivative of the pattern (Pattern Failure or the Appendix) or the pattern itself...

Saying a pattern is "profitable" is, in my mind, completely ludicrous. Simply because it depends on too many factors. The pattern itself is almost irrelevant (but, paradoxically, extremely important in that it has to offer a tiny edge)...it's the framework - both systematic and mental - built around it that's (hopefully!) going to make it profitable for you.

Some of the answers to the many questions which have to be tackled when using this approach have their foundation built upon market dynamics. Some are based on the trader him/herself. Others are a combination of both:-

* What Time frame? The considerations are very different when used intra-day as opposed to swing trading...
* What high do you choose as your anchor? Why?
* How do you trade out of the third high? Reversal candlestick trigger? Channel break? Or do you just trade the level without "confirmation"
* How will the above alter your R:R? Will it alter your WR?? (See below)
* Are you using a fixed stop or a technical stop?
* How accurately can you pick off the highs? *Are you playing the statistical game or analytical one? That is, take profits that work based on R:R and WR or try to get to S/R / target levels based on...whatever?

There are probably more, but it's late and I want cereal!