Today, I am sharing with you two stories.  One, of a student that came to us in May 2012 and another who is contemplating joining THD.  The reason for sharing these is simple.  We train many traders every year – day in and day out.  We have some that come to us because they want to try something new, some that want to see what it is all about, and others that want to change the course of their life.

The stars are always the ones that want to change the course of their life.  The ones that accept full responsibility for learning a new career and failure is not something they are willing to accept.  We can normally identify them quickly.  Why?  Because they come prepared to learn, they take lots and lots of notes, they send us screenshots of their mistakes, they practice on a daily basis, and they ask us questions when they don’t understand.


Just wanted to send you a quick note of thanks for the volume analysis book.  It is amazing how well it all works.

I have attached a couple of things to this email.

1.  A screenshot of 29 bars on the 3 minute chart from today’s @NQ action.
2.  My notes on a bar – by – bar basis (I love this back to basics stuff)
3.  A screenshot of what happened after bar 29

Bar 1 starts the uptrend (you can’t see it but the ATR stop was broken by bar #1).  I thought that this was a great way to show volume divergence in action.  As you noted – volume divergence in an uptrend means that there is going to be a test for sellers.  So if you have volume divergence it means that either the trend will reverse or you will have a retracement and a continuation of the prior uptrend.

As you can see from the notes and the screen shot, #9 bar showed strong divergence indicating that there would likely be a test for sellers.  #10 bar was a lower high and lower low.  #13 bar came in with lower high and lower low but on lower volume.  This indicated that the trend was likely to continue up.

Similarly, the same thing happened on bars #20 and #22; however, this time there was higher volume on the lows indicating that the trend was likely to reverse.  It did.

In the second screenshot you can see how it played out over the course of the day.

Great stuff as always GM!………….JS”

He attached his screenshots and notes and, yes, the market did exactly what he expected.  His notes on the live edge of the market were right on target.  This student devoured his lessons and the volume book, as well as the e-Course.

He started, as many of my clients do, back in May 2012, confused and not understanding how everything works together.  But he did not get discouraged and give up.  In fact, he did the opposite and rose to the challenge of becoming a master chart reader.  He can read price bars almost as good as I can and is spectacular on reading the volume.  He is no longer a dependent trader, relying on others to tell him where the market will go.  No, not this student.  Instead, he became his own leader in the markets.

Yesterday, prior to receiving this email, I spoke with another trader on the phone. He had taken many educational courses and stated that he had trouble when it came to the live edge of the market.  He was unsure if THD could help him.  My answer to him was simple, “Depends on how serious you are about learning.”

If a student approaches the THD courses thinking it will be easy — chances are they will fail.  If a student approaches THD just to see what we have to offer — chances are they will fail.  However, if a student approaches THD with the attitude of learning everything, which means studying as hard now as they did in college, AND they realize their work is done on the live edge (not the left side of the screen), which means many, many hours sitting in front of a computer screen, then just like my other star students, they will achieve their goal.  They will achieve — not because they are smarter or they knew more.  They will achieve because failure was never an option for them.

I may teach traders everything I know but it is the trader that decides whether he will be successful or not.